Essential VA Loan Tips to Get Approved

If you want to become a homeowner, chances are good that you will need a mortgage to accomplish that goal. If you’re a veteran, you have additional options available to you. Since 1944, over 18 million veterans and military members have used the VA Loan Guaranty Program to buy or refinance their homes. The VA Loan program is an excellent opportunity to take advantage of your hard-earned benefits and be guaranteed better rates and terms.

In addition, MIG waives all lender fees ($1,125) for qualified veterans and their spouses as our commitment to serve those who served for us.

Whether you’re new to the process or have previously bought a home and have decided to move, these tips will prepare you as you navigate the journey of obtaining a mortgage.

  • Secure A Certificate of Eligibility (COE)
    Prove to the lender you’re eligible for a VA loan by showing them your COE, which is a simple document that proves you meet the requirements to receive a VA loan. Active duty military, Veterans, National Guard, reserve members, and surviving spouses may all be eligible. Get your required evidence together and apply either online, through your lender, or by mail. Showing your COE to your lender allows the mortgage process to progress. Don’t stress if you’ve had a COE in the past and misplaced it. Simply apply for a new one. Remember, a COE doesn’t automatically ensure you will receive a VA loan. Other factors are involved in the approval process. Which is why you need to…
  • Check Your Credit Report for Errors
    Your credit report and the way you manage your finances factors heavily into being able to land a mortgage loan, and that includes a VA loan. Before you begin the process, pull your credit report and review every line. If you see other social security numbers tied to your name, accounts you don’t recognize, late payments that never happened, or incorrect balances on your debts, dispute them. The credit bureaus offer online dispute services that make it easy. The sooner you dispute errors, the faster they can get corrected, and the faster you can move forward with homebuying.
  • Know Your Credit Score
    Talk to your lender about your plans to buy a house, ask to have your credit report pulled, and find out what your credit score is. You will have three scores, one from each of the credit bureaus. The higher your scores, the better you are at managing your debt loads, paying your bills, and managing your finances in general. Ask your lender to explain your credit score to you and the options you have in terms of landing a VA loan.
    RELATED READ: Understanding Your Credit Score
  • Get Pre-Approved
    This step propels you ahead of other homebuyers who haven’t made this effort, which helps you during the negotiation phase of the purchasing process. Meet with your lender and complete an application. You’ll need to bring some documents with you, such as your driver’s license, pay stubs, tax returns, bank account statements, and, if you’ve sold your home already, a settlement statement from that sale. Based on your credit score and your overall financial picture, your lender will make an approval decision.
    RELATED READ: Why Get Pre-Approved for Your Mortgage


If you’re worried that you’ve already used your VA loan benefit, or aren’t sure you want to use it yet, you need to…

  • Understand the VA Loan Benefit
    Fortunately, it’s not a one-and-done offering. There’s not a limit on the number of times a veteran can use the program.
  • Familiarize Yourself with Occupancy Requirements
    VA loans are to be used to buy a primary residence, not a vacation home or rental property. The veteran has 60 days to occupy the home after closing day. In certain situations, the VA will waive the 60-day rule of occupancy. Some reasons the occupancy requirement may be waived are if you’re a service person who will be retiring in the next year or if the home needs significant renovations. A spouse is able to fill the occupancy requirement for an active duty service member who is deployed.

In addition to the above-related VA loan requirements, these are two significant tips every homebuyer should follow.

  1. Keep Your Current Job
    Your mortgage lender will heavily factor your job into the loan decision. The length of time you’ve held the job, hours worked, and your income will balance out your debt ratios and help lenders decide if and how much money they will lend you. If you change or quit a job, it can throw your ratios off and make it look much riskier to loan you money. The whole deal could fall through! So, if you want to buy a house, do everything in your power to keep your job through closing.
  2. Avoid Big Purchases
    If you go out and buy expensive new furniture or a new vehicle on credit it can mess up your chances to get a house. Lenders establish your debt-to-income ratio based on the amount of debt you carry compared to the money you make. If you finance a big purchase, that will increase your debt, which can throw your ratios out of whack, knocking you out of qualifying for your loan.

VA loans were put in place to help those who served our country acquire the American dream of home ownership easier and at an overall lower cost. Use it to your advantage to purchase the home of your dreams. Thank you for your service.

Share