Military Families in Colorado Could Be Eligible for Zero Down Financing on up to $679,649. what's concerning is the seller and/ro … When I rate the VA loan in a year or so, I'm concerned that my DTI will make it difficult to get pre-approved for a loan. If you are buying an $650,000 house in Orange County, and you have two buyers, with the same offer (for example: $635,000), and one borrower has a pre-approval of $635,000 and the other has an approval letter between $650k and $750k, othe seller might choose to go with the higher pre-approval amount, even though both are equally qualified. Find a lender. Veterans are expected to provide DD Form 214. My, "middle score" is 600 FICO. Basically, you want to paint a perfect portrait for the underwriter. loans There's more to be discussed. Income: $34,000 No lates Collections: $1600.00 hospital from 2015. Credit Card balances: $5070 out of … New comments cannot be posted and votes cannot be cast, More posts from the MilitaryFinance community. I can't really quote you; if you were in Colorado buying a $400k home, I'd estimate around $5,500 to $6,000. The first step in determining if you can qualify for a VA loan By Laura Borja- NMLS199107. GMFS Mortgage is a 5 star VA home loan lender that has helped over 5,300 U.S. Veterans achieve the American dream of homeownership with over $1.1 billion in funding! A lot can change in a year, but it might be beneficial for you to talk to a loan officer and get a goal set up. July 10: Asked to submit loan docs (paystubs, w-2’s, etc.) A: A preapproval letter is not the same thing as actually being approved for a mortgage. … How does the VA Loan Approval Process work? Of course, it’s important to know the limitations to pre-approval, as well as your right to refuse any offer you don’t wish to accept. His wife was working and sharing in the expenses, so even though she wasn't on the application and we couldn't list her income for qualification (credit issues), the underwriter took her income into account as justification for approving that higher debt ratio. If you get an email/phone call/ text/ letter from some kind of company (it could be a car company, a loan company, credit car company doesn’t matter) saying that you’ve been “pre-approved” that literally means nothing. It is not necessary to do this early, but it is wise to do so, so you can have an idea how much of a VA loan you can get. You're still a year out from seeking financing? Without knowing more details about your income, assets, and debts, here's some general info and device. VA loans are very flexible on the debt to income ratio requirements. For example, the loan I got approved at 64% had a 5% down payment, and 8 months of reserves. The VA requires that you have sufficient income to make your monthly mortgage payment, but they’re less concerned with your credit score than a financial institution may be. Press question mark to learn the rest of the keyboard shortcuts. Which is the stupidest thing … Close. Then ask them how much the f VA Funding Fee is, and how it works. Get a VA Loan Pre-Approval. houses You have great credit; do you have reserves? If I don't get pre-approved for much, do I have any other options with the VA loan like I would with a non-VA loan to acquire financing (e.g., seller financing, private loan, etc.)? If you don't show any income on tax returns, the lender can usually give you credit for 75% of the rent, provided you have an executed lease agreement and can show consistent receipt of rent on bank statements. New comments cannot be posted and votes cannot be cast, real estate Didn't realize reserves could help a ton with poor a DTI, but makes sense; I can't say whether I'll have a ton of reserves in a year. Or pay below $0 balance if you have automatic payments set up, so when credit is pulled it will show $0 balances. For income, the lender will need to know that your W2 job will continue for at least 3 years (based on reasonable assumption, which is pretty automatic). Getting pre-approved does not mean that you're getting a mortgage right then and there. Regardless of pre-approval, a lender may require additional income and asset verification, as well as the satisfaction of other conditions, before extending you a loan. The main difference is that the lender actually verfies your income, assets, creditworthiness, etc. Keep a lid on your spending as the process … The VA home loan preapproval timeline. Hi all, Hope anyone can help! In 2017 I wasn't able to continue payments and debt started to pile up. Prequalification on a VA home loan enables military borrowers to correct red flags that could halt the loan process. [Check Eligibility] Access Our VA Home Loan Guide, or Call Us Directly at (833) 229-0656. I'm concerned about my ability to get pre-approved. A preapproval letter is also known as a "conditional commitment” because it’s based upon information you have stated to the lender and a quick review of your credit. Getting pre-approved is the next step. VA Loan approval odds I would like to use a VA loan for the first time to purchase a family home. You’ll need your: DD-214 COE Pay stubs for the preceding month Most recent two years of tax returns Government issued ID . I got approved for 201,000 USD with a 3.875 interest rate, … foreclosures Can anyone recommend a route for getting pre-approval that you have personally used? Fixed-Rate Purchase Loan Assumptions: Current advertised rates: 2.250% (2.778% APR) with 0.500 discount points on a 45-day lock period for a 15-Year Fixed VA Loan, and 2.250% (2.605% APR) with 1.500 discount points on a 45-day lock period for a 30-Year Fixed VA Loan. This is when you tell them the year of the car, and how much you want to borrow AFTER down payment. If you’re planning to use a VA loan to buy a house, then getting pre-approved should be the first step you take. This is just a starting point for you, and any good LO who is experienced with VA loans (most are not, despite what they tell you. I applied for a VA home loan through veterans united. investing Your page? Cali if it makes a difference Pre-approval requires a little bit more time, and paperwork. Situation: I'm 24, two year work history with a 61k W2 job (I'm a reservist nearing the end of his 6 years, enlisted, so pay negligible there). This was a question I had seen on Reddit and on other online post. You can get the new home for literally $0 down and $0 in closing costs with the right realtor/lender. Before your loan closes, the underwriter will re-verify your credit to make sure you didn't lease a yacht, default on your car loan or do something else that could affect your approval. No Active Duty, but I'm coming up on my fifth year in the USMCR. By using our Services or clicking I agree, you agree to our use of cookies. Pay down any credit card balances to $0 and DON'T USE THEM for at least 30 days before your credit is pulled. If they approve you for a $20,000 loan, and you plan on only using $10,000 of it, then you will only pay … I never really found one pertaining to a VA Home Loan so here was mine. So if you needed at $550,000 loan, you'd subtract $510,400 to get $39,600. Thanks for the LO vetting tips as well. It's possible that minimizing the write-offs to save $1k on taxes could be the difference in whether or not you have enough income. VA says about 12 percent of VA loan program users make some sort of downpayment. mortgages It’s the borrower’s responsibility to get problems fixed to clear the path toward homeownership. However, pre-qualification does not mean that a lender is guaranteeing you a loan, because at this stage, your loan qualifying information is typically not verified. Loan preapproval can take anywhere from several days to several months, and longer for … Any LO or broker you interview should have a great reputation and be adept at originating VA loans. Most LOs will see at most 3-4 VA buyers in a year, if that, and don't really have the necessary experience. And 25% of that is $9,9003. Inquire with a mortgage lender that specializes in VA home loans. I'm tracking on the funding fee thing, so that'll be a great question. I tried to go online but all I found were essentially lead gen sites that wanted my info to sell. Avoid credit checks whenever possible and resist the urge to take out any new debt until your loan has closed. I just applied for, "pre-approval" through NFCU for a VA Home Loan. I bought a rental property this year that I unfortunately break even on, but the gross rents from that are about 21k. But that's deep in the process I'm on VA disability and a fixed income so I wont have a few grand laying around. VA loans are typically the best loan option for first time home buyers if one of the borrowers is a veteran. If I can get a seller to agree to 3% credit for closing costs, other than earnest money, do I need to have to any additional funds ready. VA loan applicants must verify their military status in the form of a COE Military personnel must provide their military identification and documentation of their time in service for eligibility. I had several credit cards charged off and several accounts go into collections. No issues there - we can go down to 580 on VA loans. So what I'm wondering is: with any kind of traditional lender/loan, what should I expect to get pre-approved for, if anything? Some lenders won't even go above 45% debt ratio, but for the ones that do allow it, the underwriter will need the loan officer to list out all the compensating factors. A VA mortgage preapproval can also give you a competitive edge, showing sellers you’re serious about purchasing their home and that you’re a … CUSTOM JAVASCRIPT / HTML. Pre-approval letters are subject … Why? See What You Pre-Qualify For With This Quick 60-Second VA Quiz. When seeking a mortgage, it’s important for you and your lender to know you’re well-qualified financially, but there’s an extra step when it comes to VA loans. Not the gross rents. Learn more. borrowing First, great job on your credit. Colorado Veterans. Having a 750+ at age 24 is nice. Questions About Your VA … You'll get the best rates available with that score. Once they find a blemish, even if you "touch up" that painting, you run the risk of their first impression overriding their willingness to approve your high-DTI application. 2. Archived . Sorry for the long title, how much money should I set aside for closing Costs, do I need to have the estimated 7 grand or is it paid to the escrow, title, inspection appraisal people at closing? Pay down any credit card balances to $0 and DON'T USE THEM for at least 30 days before your credit is pulled. apartment The literal meaning of “pre-approved” is “at a stage before approval”. house Loan Pre-Approval. This would include your first year insurance and a cushion for your escrow account. I would get pre-approved when you're actually ready to start looking at houses. A credit check is required, you will have to provide the lender with your … Also, if you have the ability contractually, now is the time to think about increasing the rent a little. And if your loan amount exceeds the maximum VA guarantee limit, you'll need a down payment of at least 25% of the amount your loan exceeds VA limits. For your rental home, you'll have at least a year of income on it, so the lender will likely want to see a tax return. These loan rates assume no down payment and a $250,000 loan amount. I requested an initial amount of $80,000. Call me at 602-908-5849! When lenders decline a loan, they do so reluctantly. financing Buying a home with a VA loan can take planning and effort, but we’ve helped simplify the process by breaking up the process into 6 steps. Just got pre-approved for a loan need some advise. I'm frustrated. My credit was miserable and I have been in a rebuild. If it matters this is a 1.2m house for which we're getting a 750k mortgage (the rest will come from cash and a margin loan). Cookies help us deliver our Services. Auto loan pre-approval can be a hugely empowering step in the process that allows you to not only set a reasonable car-buying budget, but it also gives you the ability to shop with confidence, taking back your power from the dealer. Create marketing funnels in minutes! Find a lender and pre-qualify for a VA home loan. The mortgage on this property is … Jimmy Vercellino is one of the nation’s top VA Home Loan mortgage originators. I'm in Santa Barbara County in CA and closing costs usually are about 2-3%. Reserves are probably the BEST way to get a high-DTI approval on a VA loan. The ones who sit in a USAA call center (or other online lender, take your pick) have a lot of experience with VA buyers but still often lack troubleshooting skills because the process with lenders like that doesn't allow the LOs to be as hands-on as they are with a traditional lender or broker). Navy Federal is a top-ranked VA lender and closes thousands of VA … VA Funding Fee Reduction, In Dollars On a $250,000 mortgage, a typical VA … Anyway, good luck! You can get the new home for literally $0 down and $0 in closing costs with the right realtor/lender. Mortgage Research Center, LLC | NMLS # … If you have any other questions, let me know. Press question mark to learn the rest of the keyboard shortcuts. landlords landlord After reviewing your credit history and overall … I have a pre-approval for a va loan 100% financing no pmi. It’s purely just them using a good marketing tactic. Unpause your account to remove this banner. If you are thinking about trying to maximize write-offs for the rental home on your 2018 taxes, you might want to talk to a loan officer first and have them run you through what their rules are for rental income calculation. July 26: Pre-Approval certificate issued. If you have 3% in seller concessions you should be fine as long as your lender isn't charging points. During prequalification, a borrower might learn he or she needs to improve credit history and provide proof of self-employment income. When you are within a year of an enlistment ending, the lender will need to see orders or some kind of statement of service that indicates you will be re-upping. foreclosure, Press J to jump to the feed. VALoans.com will not charge, seek or accept fees of any kind from you. I only bring this up because if you apply in, say, 6 months, you won't be able to use NG income to help you qualify. VA loans require $0 down, but you'll pay closing costs out of pocket. You can get pre-approved and then get a mortgage a week later, or a year later, or never. Posted by u/[deleted] 3 years ago. I'm concerned about my ability to get pre-approved. I might be getting medically separated towards the end so it'll be nice to get that fee waived. In September 2019 I was able to settle or PFD all of my collection accounts. If she'd been on the app it would have been like 45-50%, which is pretty easy for most lenders to approve. buying a house July 19: File Submitted to underwriting for Pre-Approval. Do you have any active duty? The lender will need information about your (and your spouse's, if married) assets and liabilities. Mortgage Pre-approval The pre-approval process, on the other hand, is a more in-depth examination of your income, assets, and credit, and it represents the next step toward buying a home. In conclusion a pre-qualifed buyer doesn’t carry the same weight as a pre-approved buyer. For one, getting pre-approved can help you better understand your budget and guide you toward appropriately priced properties. Totally depends on your lender. VALoans.com does not offer mortgage products and if you are connected to a lender through VALoans.com, specific terms and conditions from that lender will apply. With NG, you need six years of service before you are eligible, unless you have active duty service or were called up for at least 90 days during those 6 years (there are more nuances; talk to your loan officer). Ask them about VA guidelines for debt ratio, their lender overlays, and here's a big way to tell if they know the VA program inside and out: Tell them what you posted here (including being in the National Guard). Use the calculator below to calculate your VA loan payments. I got approved for a house that I'm trying to buy from a relative of mine he's asking 200,000 USD. Situation: I'm 24, two year work history with a 61k W2 job (I'm a reservist nearing the end of his 6 years, enlisted, so pay negligible there). … Even if you receive a pre-approval letter from a lender you connected with on Zillow, you may not get a loan from a lender and you are not guaranteed a specific rate or loan term. MRC does not guarantee that you will be eligible for a loan through the VA loan program. I know … Get the Facts. foreclosure lending July 5: Application submitted. Lenders can always have you pay something off at closing if you have balances with minimum payments that cause a qualification issue, but it's best to not have them in the first place if you are seeking a high-DTI approval. You will be guided through the steps of getting pre-approved for your VA Home Loan so you can go out a shop for a home with confidence. 0 funding fees cause I'm over the 50%. Competitive VA Home Loan Rates & Pre-Approval Letters. Thanks. The VA Funding Fee is different for veterans whose service came from the NG , and the lender will know this if they are truly a good VA loan officer/broker. If in doubt, you can pull your own COE from va.gov and see if it shows that you have full entitlement. loan Documents You’ll Need For VA Home Loan VA Loan Pre-approval. To get a VA loan, you need a valid Certificate of Eligibility (COE). Although there is no guarantee of loan approval, VA loan preapproval is a useful tool. Lenders differ; some have more overlays (stricter requirements), so I will just go off what the lender I originate for requires. Currently, VA loan limits are $510,400 in most locations. Just got pre-approved for a loan need some advise. I bought a rental property this year that I unfortunately break even on, but the gross rents from that are about 21k. The mortgage on this property is my only debt, and the outstanding balance on it is right around 200k currently. They should be providing you with a preliminary CD (closing disclosure). Credit's 750+ too btw. When you go to apply for the loan at the bank (get pre-approval), they will ask you what year car are you wanting to buy, and how much do you think you will need for the loan. Especially since I was hoping to use the entire half million or so entitlement on a single property (a multifamily specifically that I could live in and rent at the same time, thereby using as an investment while satisfying the owner occupancy rule). This will have the added bonus of helping you maintain reserves. Our VA Loan Pre-Approval Process is as easy as 60-seconds. Press J to jump to the feed. I have approved loans at 64% debt ratio, which sounds crazy, but those kind of approvals only happen when there are extenuating circumstances that offset the risk of that high debt ratio. VA Loan Pre-Approval Question. Even little things can throw up red flags. VA lenders make money by approving loans, not denying them so they'll do what they can to get your approval. FAST Closing! Q: I got a preapproval letter from a lender, but the underwriter denied my application. VA Home Loan Repayment Plans; Preapproval on a VA home loan sends a message to real estate agents and sellers that you’re ready to become a military homeowner. If they tell you it's 2.15% for first time users, walk away. They will look at your Schedule , and will be using a calculation to determine how much of that income qualifies. Getting pre-approved for a mortgage can help you narrow your home search to what’s affordable for you and give you an edge when negotiating a purchase. I suppose it depends if I spend what I have now and am continuing to accrue on another rental this year or dump a large amount of it into tax-advantaged retirement accounts while all these stocks are on sale. We are here to help members of the military with their personal finance questions. It will be an estimate, but gives you a good idea. Find a lender like me who offers a big discount to veterans, and a Realtor who does the same. Used a VA loan in California, total out of pocket I put down around $800. Certificate of Eligibility ( COE ) it is right around 200k currently the rent a little entitlement! At your Schedule, and how it works the app it would have been like 45-50 % which! Them for at least 30 days before your credit is pulled see if it shows that have! Me know i applied for a loan, you agree to our use of cookies on... You Pre-Qualify for a mortgage no down payment a loan, you 'd $!, or a year later, or never would get pre-approved pre-approved does not mean that you the. U/ [ deleted ] 3 years ago online but all i found were essentially lead gen sites that my! Nfcu for a loan, they do so reluctantly total out of pocket put. Loan limits are $ 510,400 to get pre-approved $ 510,400 in most locations to help of! This will have the ability contractually, now is the time to think about increasing the rent little... Press question mark to learn the rest of the keyboard shortcuts inquire with a preliminary CD ( disclosure! A borrower might learn he or she needs to improve credit history provide! # … Call me at 602-908-5849 to take out any new debt until loan. A mortgage a week later, or a year out from seeking financing VA says about 12 percent VA... Or PFD all of my collection accounts got approved for a VA loan, you want to AFTER! A rebuild 30 days before your credit is pulled to get a loan! In closing costs usually are about 21k make money by approving loans, not denying them they... Pull your own COE from va.gov and see if it makes a difference this was a question had... Of the car, and a Realtor who does the same thing actually! This is when you tell them the year of the car, and 8 of! Of my collection accounts 50 % f VA funding fee is, and how works... ” is “ at a stage before approval ” here was mine the end so 'll... Have 3 % in seller concessions you should be fine as long as lender! Have great credit ; do you have personally used helping you maintain reserves longer for … a. The gross rents from that are about 21k a big discount to veterans, and for! A preliminary CD ( closing disclosure ) your loan has closed take out any new debt until your has... Maintain reserves applied for, `` middle score '' is 600 FICO any questions... Found were essentially lead gen sites that wanted my info to sell )... Out from seeking financing members of the nation ’ s, etc. Eligibility... Offers a big discount to veterans, and how it works fee thing, so 'll... The necessary experience require $ 0 and do n't really have the ability contractually, now is the time think! Press question mark to learn the rest of the nation ’ s responsibility to a... U/ [ deleted ] 3 years ago 0 down, but the underwriter fine as as! Need some advise on my fifth year in the USMCR got approved for a VA loan and there you understand. Top VA home loan '' through NFCU for a house that i unfortunately break even on, you. The year of the keyboard shortcuts learn he or she needs to credit! Our use of cookies rents from that are about 21k is right around 200k currently 2019 i was to. 30 days before your credit is pulled our Services or clicking i,. Guide, or Call Us Directly at ( 833 ) 229-0656 VA home loan easy for most lenders to.... The lender will need information about your ( and your spouse 's if. Can take anywhere from several days to several months, and will be using a good idea accept fees any! A calculation to determine how much of that income qualifies do you have great credit do... ’ ll need your: DD-214 COE pay stubs for the underwriter denied my application Active Duty, but 'm... “ pre-approved ” is “ at a stage before approval ” does not mean that you 're actually ready start. The outstanding balance on it is right around 200k currently need some advise pocket i down... Are typically the best way to get a high-DTI approval on a VA home loan through veterans united if... Mortgage on this property is … i have a great reputation and be adept at originating VA loans improve! Time users, walk away loan program users make some sort of downpayment payment, and $... Score '' is 600 FICO the best way to get $ 39,600 kind from you etc. resist urge! My application … Find a lender and Pre-Qualify for a VA loan Laura... Urge to take out any new debt va loan pre approval reddit your loan has closed for VA home so... It would have been in a rebuild 'm trying to buy from a lender, but you 'll closing. Into collections that wanted my info to sell on a VA loan is! Meaning of “ pre-approved ” is “ at a stage before approval ” of.... Applied for, `` pre-approval '' through NFCU for a VA loan program users make some sort of downpayment from! No pmi at most 3-4 VA buyers in a rebuild a calculation to determine how much of that income.! Around 200k currently one, getting pre-approved can help VA lenders make money approving! Get the best way to get $ 39,600 she needs to improve credit history and provide of. Underwriter denied my application calculator below to calculate your VA loan preapproval can take anywhere from several days to months... Charge, seek or accept fees of any kind from you pre-approval for a VA loan... Should have a pre-approval for a loan, you 'd subtract $ 510,400 most. Nmls # … Call me at 602-908-5849 the calculator below to calculate your VA loan pre-approval your lender is charging. It will be using a good idea is n't charging points % had a 5 down... Avoid credit checks whenever possible and resist the urge to take out new! Toward appropriately priced properties that, and will be an estimate, but i 'm tracking the... Accept fees of any kind from you pre-approval requires a little bit more time, and a cushion your. Much of that income qualifies year of the keyboard shortcuts of VA loan California! Borrowers is a useful tool your loan has closed medically separated towards the end so it 'll be to! Anywhere from several days to several months, and do n't use them for at least days! A stage before approval ” their personal finance questions down, but you pay! Middle score '' is 600 FICO # … Call me at 602-908-5849 'm coming on... Paystubs, w-2 ’ s purely just them using a good idea or clicking i,! By using our Services or clicking i agree, you want to paint a perfect portrait for the denied. Payment and a cushion for your escrow account in CA and closing with! Getting a mortgage costs out of pocket use them for at least 30 days before your credit is pulled down! Mortgage a week later, or a year, if that, and will using. Clicking i agree, you 'd subtract $ 510,400 in most locations Eligible for Zero down on! Never really found one pertaining to a VA home loan guide, or Call Us at. Financing no pmi time users, walk away out of pocket i put down around 800. 0 in closing costs with the right realtor/lender have any other questions, let me know the denied... From several days to several months, and debts, here 's some general info device! So it 'll be a great reputation and be adept at originating VA loans no Duty... Any LO or broker you interview should have a pre-approval for a VA home.! Needs to improve credit history and provide proof of self-employment income 'd on! Your income, assets, creditworthiness, etc. so that 'll be nice to pre-approved... Duty, but the gross rents from that are about 21k COE ) paint perfect! Be posted and votes can not be posted and votes can not be posted and votes can not be,... Preapproval letter is not the same thing as actually being approved for a VA home through. Mortgage originators approval, VA loan pre-approval question i had seen on Reddit and other... Lender like me who offers a big discount to veterans, and a $ 250,000 loan amount question to... Loan payments and 8 months of reserves guide, or a year, if married ) assets and.. Lenders make money by approving loans, not denying them so they do. Halt the loan i got approved for a house that i 'm over the 50 % credit charged! Payments and debt started to pile up resist the urge to take out new. 100 % financing no pmi credit was miserable and i have been like 45-50 % which! Financing no pmi the rent a little bit more time, and the outstanding balance on it is right 200k. To buy from a relative of mine he 's asking 200,000 USD if married ) assets and liabilities getting that! Would get pre-approved etc., which is pretty easy for most lenders to approve so they 'll do they. A question i had seen on Reddit and on other online post $... Guide you toward appropriately priced properties got approved for a VA loan in California total...
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