After you have served long enough that you meet the requirements of a VA loan, you may be eager to pursue one. But if you make certain common mistakes when applying for the loan, the process will be much more difficult and your dream home might slip through your fingers.
Not Determining If You Are Qualified
Make sure that you are qualified. If you were honorably discharged, you are qualified. But even if you were dishonorably discharged, you may still qualify depending on the circumstances. You may qualify if you are active duty depending on how long you have been in service.
Not Getting Pre-Approved
Some borrowers confuse being pre-qualified with being pre-approved. If you are pre-qualified for a loan, you have simply received a quick appraisal that can give you a sense of whether you will be approved, but is not an official approval. The pre-approval process is more challenging, but once you are pre-approved, you will receive a letter that you can take to home sellers to demonstrate that a bank is willing to lend to you.
Not Working With An Experienced VA Lender
Not all lenders have VA experience. If the lender makes a mistake when submitting your file, the mistake can be expensive. For example, the VA funding fee might be rolled into the loan amount to allow you to avoid paying the fee, but this can lead to you becoming disqualified for the loan.
Looking At Homes That Aren't Qualified
When you are looking at a home, make sure that the home is qualified for VA loans before you make an offer. Certain condominiums and town homes are not qualified and veterans will fall in love with a home only to discover that it isn't available to them. Fortunately, there are online condominium check tools you can use to quickly determine if one is qualified.
Confusing An Appraisal With An Inspection
Even though your home receives an appraisal, this is not the same as having your home inspected. For example, if the home has termites, this will likely not be discovered by the appraisal.
VA loans are still the best loans that anyone can be qualified for. They do not require a down payment, they place restrictions on closing costs and have very competitive interest rates, even for those who have bad credit. Talk with a VA lender today to get a free VA loan quote.