Buying a home as a proud member of the United States Military does not have to be complicated. With the right VA mortgage company and a helpful guide (like this one) the process will be over before you know it. This guide provides information for each major step you should prepare for if you are planning to use your VA benefits to buy or refinance a home.
The home buying process starts with your credit score. The reason this is your starting point is because it can take the longest to get fixed or corrected if it is less than satisfactory. A really low credit score can have a huge impact on your home loan, it could even disqualify you from getting a loan altogether. To ensure that you get the best interest rate and loan terms know your credit before hand, and if its low, start working to get it as high as possible.
Start today to improve your credit score. Eliminate “bad debt” such as high interest credit cards, and make sure you are current on all your accounts. Be patient, your credit score will not immediately go up when you start paying these off it can take a few months for the credit bureaus to acknowledge and post the changes.
You can find more information about credit scores and where you should be at by reading this blog.
If you are not sure where to start or want to know where your credit is at. Get in touch with a VA mortgage specialist who can help you determine the best route to take to start raising your credit score.
All the paperwork required to successfully process a VA home loan, if not provided, can hold up the whole process and delay your home loan. It should only take about 15 minutes to round up the necessary paperwork. Be sure to keep all the following paperwork in a safe place so that you can easily locate it when it comes time to process your loan.
Here is a list of what you will need:
-W-2 (Last 2 Years)
-Paystubs (most recent 2 Months)
-Bank Statements (most recent 2 Months)
-COE (Certificate of Eligibility)
-If you do not have a COE make sure to provide a copy of your DD-214 and Verification of VA Benefits form. Find out more about obtaining a COE
-Current Note and Mortgage Statement
-Homeowners Insurance Policy
-SSN + ID
-Any other documents requested by the mortgage company you are working with.
As you can see there is a lot of personal information required in order to secure a VA home loan. Be sure that you trust the individuals you are working with before you send them all your detailed personal information. Also be sure to ask if there is anything else you need particularly from the lender you are working with that is not included on this list. The reason you should do this is because not all lenders are the same and they may require a few different documents here and there.
If You’re Deployed
If you are deployed right now and you are thinking that buying a home is going to have to wait. STOP! There are ways that you can start the homebuying process before and during a deployment. Check out this blog we wrote all about it.
Just keep in mind that buying while you are deployed can be tricky, but it’s not impossible. As long as you are prepared and have all your paperwork in order this process should not be too difficult.
An appraisal is part of every VA home purchase. The appraiser (who has to be approved by the VA) will come in and inspect the property. This accomplished two things that will keep you from getting taken advantage of during the home buying process. It ensures that the property is fairly priced to be sure you aren’t being overcharged for property. The appraiser will also check to make sure the property is safe to inhabit. This is the second thing they will look for to keep our veterans from buying homes that could fall apart in less than a few years.
Military home buying does not have to be a long and complicated process. The key is to be prepared. If you are planning to buy or refinance anytime soon start getting everything together now, even if you aren’t planning to do anything for a few years. This is especially true when it comes to your credit score. This will make the home buying process quick and easy for you and your mortgage company.
Want to see if you qualify for a VA home loan? Fill out our online application and we can help you get started.