If you have served or still serve on the front, you are well aware of VA home loans. This is the only mortgage program which is suitable for active-duty service members and veterans. One of the main reasons behind this wild popularity is no down payment and zero private mortgage insurance. When conventional mortgages fail to provide such lucrative benefits, VA loans stay on top of the game.
Of course, this type of home loan is only applicable to a particular group of borrowers. Due to this exclusivity of the mortgage, the benefits are quite amazing. The best thing about the mortgage program is low credit scores. Since many borrowers undergo nightmares for their poor credit, VA gets rid of the stress factor. The Department of Veterans Affairs does not add any guideline regarding the borrowers’ credit scores. But it is the lenders who impose the credit score eligibility requirements.
When a financing option seems as enticing as this one, you might consider it as your best bet. In addition to it, you would not like to make mistakes in the process, either. So, let’s go through the common mistakes committed by borrowers while applying for a VA home loan bad credit in Houston.
Mistake #1: Not having a discussion with a VA lender
Veterans thrive with this home mortgage program, and why should not they? It is one of the most beneficial and powerful loans in the housing market. Unfortunately, 1/3 of eligible VA borrowers are unaware of their entitlement. For this very reason, ask your lender the moment you meet. Try to cultivate as much knowledge as possible. The VA-approved lender ensures the advantages you are entitled to receive. If things go in the right direction, you can avail 99% of financing. Once you get full financing, 0% down payment will not be miles away. In addition to it, low mortgage rates are possible. Inform the VA-approved lender about your military status and get hold of COE.
Mistake #2: Not considering home as a crucial investment
Even though you are not making plans to relocate anytime soon, consider the newly-bought abode as an investment. Through one purchase, you can build wealth, and it will convert into home equity. Look into high-demand neighborhoods, and research on the latest home styles. When the time comes, you can fetch a handsome amount by selling it. Also, the wealth generated after selling can provide greater help at the time of relocating. VA loans are limited to one-benefit, and the programs are assumable. Therefore, it is possible to transfer the loan to another potential borrower.
Another mistake the veterans make – considering it a mortgage only for good credit scores. Many VA lenders provide the mortgage for those who have only 550 credit scores. Yes, borrowers who do not have 620 credit scores can also apply for this mortgage program. Buying a VA home turns the whole buying procedure easier. In case you have queries, do not fret to ask your mortgage lender!