If you are eligible for a VA loan, then that’s something that you want to make use of. VA loans, after all, are guaranteed by the U.S. Department of Veterans Affairs. Veterans home loans are less strict than a typical home loan because even if it’s not actually made or run by the government, it is still backed by a government agency. Lenders know there’s less risk for them compared to a conventional mortgage.
It is perhaps for this reason that it’s possible for veterans or their spouses to get a VA loan even without a down payment or even with a lower credit score. That said, you still need to meet the requirements set by the lender, and ultimately, you still need approval.
That may sound pretty simple, but the truth is, there are some things that could affect your chances of getting approved by one of the best VA lenders. Here are some of them:
1. Errors in Application
You need to double or even triple-check your loan application documents before submitting them. That way, you can eliminate the risk of getting some of the information you provide wrong. Once you’re sure that everything is correct, have your spouse or family member go over the papers. Sometimes a fresh set of eyes can spot errors that you might have missed. Know that accuracy is of utmost importance in a loan application, and even something as seemingly minor as the number of family members can cause delay, or worse, rejection.
2. Employment Changes
Try to keep your employment consistent throughout your loan application process. Even if it’s a promotion or a transfer to a different department, it could still cause problems. If there’s no way you can stop such changes, make sure that you inform your loan officer because that often requires changes in the documentation and another round of verifications. Many underwriters think of income from a new job as unreliable.
3. Changes in Your Credit
Know that before the loan closes, the underwriter will conduct another verification. That means you shouldn’t make new leases or default on your auto loan, as it can affect your approval. The littlest things like credit checks can raise red flags. As much as possible, watch your spending and don’t take out new debts until you get approval for your VA home loan.
4. Borrower Delay
An underwriter could request additional financial statements or any other information. Just ensure that you know what those are exactly and speak with the loan officer if you’re confused about something. Your loan officer can help you find a possible alternative to fulfill the requirements. Know that underwriters will not issue final approval for your loan until every single document has been submitted and verified, so if you want to be approved, you need to reply promptly.
5. Factors You Can’t Control
Let’s say you are able to avoid all the mistakes mentioned above, and you’re able to communicate well with your loan officer. The likelihood of things going smoothly moving forward is high, except when something beyond your control happens. For one, the seller could still back out, or the inspection could discover infestations or structural problems. These things are beyond your control.
These are the things that could stand in the way of your VA housing loan approval. It is essential that you avoid these to increase your chances of getting approved. Know that the best VA loan lenders are meticulous when it comes to the process of approving loan applications, so you have to do your part.
When you’re ready to submit a VA loan application, NetLending is here to provide you with the right mortgage solution as one of the best lenders in Santa Ana, California, and Honolulu, Hawaii. Contact us today to find out more about our services!