When it comes to buying a home, when is the best time to apply for a VA loan? the answer – it is when the market is in your favor as the buyer. These not only help you be able to use things to your advantage. But it also helps you get the best interest rates possible! However, before applying, there are VA Loan questions you should ask. Listed below are few questions that you should ask which will help you decide the next step.
Do I Qualify for a VA Loan?
If you’re wondering whether or not you qualify for a VA loan. Check out the following eligibility requirements that must be met:
- a veteran who has served at least 90 days in war
- a veteran who has served at least 180 days during peace time
- an active duty service member
- the spouse of a veteran or active service member.
If you fall into any of the above categories take your relevant documents of proof to your lender. Then, begin the application process for a VA Loan.
Is a Down Payment Required?
One of the biggest advantages of VA Loans is the 100% financing. Meaning no down payment in contrast to most banks and lenders. However, to qualify for a no down payment VA loan one has to meet the criteria set for the credit scores. A VA funding fee is required but apart from that nothing else needs to be paid.
Is Credit Score Important?
While VA itself places little importance on the credits scores, most lenders do have a minimum score requirement to help them decide and approve the loans. Since this is relative to which lender you approach, make sure you contact your VA loan specialist regarding further details with respect to your own scores.
What credit score should be achieved to get a VA loan?
While this is something that changes with the economic conditions, currently most lenders approve all VA loans for veterans with a credit score of 620 or more. Even if you are in a good career with a high income, it does not imply that you will get around this credit score limit. Lighthouse Program is free-of-charge and designed for the purpose of working with veterans and active service duty members to improve their credit scores in order to qualify for loans.
What are the interest rates on VA loans?
Typically, VA Loans have the lowest interest rates of all loans available on the market. But, again these rates are dependent upon having great credit scores. When meeting with your lender it’s a good idea to ask what your specific interest rate will be and how you can lock in on that percentage as you finish your paperwork.
With these simple rules, it is very well possible to prequalify for a VA loan. First talk to your VA loans lender specialist about helping you begin the process to get you and your family one step closer to the home of your dreams!