Clearing Doubts on VA Mortgage Loan Application

Clearing Doubts on VA Mortgage Loan Application

Applying for a VA mortgage loan is no different from the usual mortgage loan in the market. The application process is pretty much the same except for the need to secure a certificate of eligibility and the VA assigned appraisal. However, there is no need to worry if you are quite unsure about how to go through with the application process. The task can be truly daunting especially since your future home is on the line. Here are some points that can help you go through with your VA loan application.

Determine Your Eligibility

The first step to take when applying for VA mortgage refinancing or mortgage loans is to find out whether or not you are eligible. All subsequent transaction will stem from your entitlement to avail of the program. Those who have served during wartime for at least 90 successive days or during peacetime for at least 181 uninterrupted days are qualified to avail of the home loan program. For those who are on active duty, they are qualified under the program only after they have rendered 90 days of active service. The reservists, on the other hand, are eligible if they have served for at least six years whether continuous or non-continuous in the different branches of the reserves. These branches are the Army National Guard, Army Reserve, Air National Guard, Coast Guard Reserve, Navy Reserve, Marine Corps Reserve, and Air Force Reserve.

Satisfy the Requirements of the Law

Apart from the eligibility requirements, it must also be noted that the law requires that the loan must be for an eligible purpose. Added to this, the borrower must occupy or has the intention to occupy the property as their home within a reasonable period of time after the loan is closed. Further, the borrower must be a satisfactory credit risk. Another important requirement is for the borrower’s and spouse’s income to be stable. It must be sufficient to pay for mortgage rates of VA loans, cover the costs of owning a home, meet the other obligations and expenses and must have enough to support the family.

Pre-Qualify for the Loan

Pre-qualifying for the loan is a process through which borrowers learn how much borrowing power they have. This is where you apprise the lender about your income and assets. Based on the information provided, you will be given an estimate of the amount of mortgage you can afford. You will also be given the VA mortgage loan rates that you could possibly be paying. The process of pre-qualifying though is not a prerequisite for you to avail of VA loan. Nonetheless, it is highly recommended. If borrowers do not go through pre-qualifying first, you may be checking out houses that you may not be able to pay for. It can also give you a better idea of how much income you need to meet the criteria as well as the prince of the houses you can afford.

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