There are many benefits to having a VA home loan, including no down payment and zero closing costs. In addition, there is no limit to the area in which you can buy a home or the price of the house.

If you'll be purchasing a home that's located in a rural area, has a primary dwelling space of less than 1,200 square feet, or is considered unsuitable housing (for example, an apartment in an assisted living center), you may not qualify for this type of loan. However, if you meet these criteria and still want to pursue purchasing a home with this type of financing assistance, here are some tips that could help get your application approved more easily.

The process for getting approved for a VA loan isn't quite as straightforward as getting approved for other types of financing. There are specific eligibility requirements that must be met and several documents that must be provided to prove it.

 

 

Estimate Exact Costs for Repairs

Before applying for a VA loan, you'll have to get an estimate for the costs of repairs that may be needed to the home, as well as the probable cost of closing. When estimating costs for repairs, it's important that you be as accurate and honest as possible.

If the seller will be responsible for any repairs, they'll have to provide proof that they've fixed whatever problems the home has, and you'll have to be responsible for reimbursing them for that work.

If you're using a VA loan to purchase a home that needs some repairs, you may want to consider waiting to purchase it until after the repairs have been completed and the seller has been paid for them. This way, you won't need to come up with the money to cover those repairs yourself.

 

Know How Much You'll Be Paying Monthly

You'll also have to estimate how much you'll be paying each month for the loan. This way, you'll have a better idea of what your new mortgage payments will look like, and you can make sure that you'll be able to afford them. Be sure to factor in taxes, insurance, and other costs associated with owning a home.

Some lenders may require you to come up with a specific amount that you'd like to borrow so they can help you determine how much you'll be paying each month. If you don't have a specific amount in mind, it may be a good idea to visit a couple of different mortgage lenders and speak with one of their loan officers to get an idea of what your loan amount could be.

 

 

Paying off Debts and Build Savings

One of the ways you can show your commitment to homeownership is by paying off any debts you have and saving up money for the down payment and closing costs. You may be required to show proof of your savings, such as an account statement or a letter from the financial institution where you have the savings account.

You may also have to wait until you've saved up a certain amount of money, such as 10% of the purchase price of the home. It's important to check with your particular lender to find out what they require you to do to show commitment to homeownership.

 

Show Solid Employment History and Income

To prove that you're a reliable borrower, you should provide proof of your employment history and your income. Lenders typically want to see that you've been working for at least two years. You may also be required to provide proof of income from other sources, such as Social Security benefits, disability payments, child support, or alimony.

It's important to be honest about the amount of money you make each month, and how you expect it to change over the next several years. If your income is lower than the amount you reported on your application, the lender may ask you to provide a letter explaining why.

 

Conclusion

If you don't quite meet all of the requirements for a VA loan, don't be discouraged. Many lenders are willing to work with you and help you find a solution that works for all parties involved. However, it is a great option if you meet the qualifications.