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. lending Military Families in Colorado Could Be Eligible for Zero Down Financing on up to $679,649. 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. … Cali if it makes a difference 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 … Or pay below $0 balance if you have automatic payments set up, so when credit is pulled it will show $0 balances. You can get the new home for literally $0 down and $0 in closing costs with the right realtor/lender. 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. VA Loan Pre-Approval Question. This is when you tell them the year of the car, and how much you want to borrow AFTER down payment. 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. So if you needed at $550,000 loan, you'd subtract $510,400 to get $39,600. This will have the added bonus of helping you maintain reserves. Pay down any credit card balances to $0 and DON'T USE THEM for at least 30 days before your credit is pulled. My, "middle score" is 600 FICO. If you have 3% in seller concessions you should be fine as long as your lender isn't charging points. VA Loan approval odds I would like to use a VA loan for the first time to purchase a family home. 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. New comments cannot be posted and votes cannot be cast, real estate … Thanks for the LO vetting tips as well. Press question mark to learn the rest of the keyboard shortcuts. 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. July 10: Asked to submit loan docs (paystubs, w-2’s, etc.) So what I'm wondering is: with any kind of traditional lender/loan, what should I expect to get pre-approved for, if anything? Colorado Veterans. You can get the new home for literally $0 down and $0 in closing costs with the right realtor/lender. You’ll need your: DD-214 COE Pay stubs for the preceding month Most recent two years of tax returns Government issued ID . If you have any other questions, let me know. 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! 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. VA loans require $0 down, but you'll pay closing costs out of pocket. By using our Services or clicking I agree, you agree to our use of cookies. Get a VA Loan Pre-Approval. 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. 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. 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. Lenders differ; some have more overlays (stricter requirements), so I will just go off what the lender I originate for requires. mortgages Q: I got a preapproval letter from a lender, but the underwriter denied my application. loans I requested an initial amount of $80,000. Veterans are expected to provide DD Form 214. Keep a lid on your spending as the process … 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. I bought a rental property this year that I unfortunately break even on, but the gross rents from that are about 21k. They should be providing you with a preliminary CD (closing disclosure). In 2017 I wasn't able to continue payments and debt started to pile up. loan 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). Unpause your account to remove this banner. Currently, VA loan limits are $510,400 in most locations. During prequalification, a borrower might learn he or she needs to improve credit history and provide proof of self-employment income. VA loans are typically the best loan option for first time home buyers if one of the borrowers is a veteran. I'm tracking on the funding fee thing, so that'll be a great question. You'll get the best rates available with that score. A: A preapproval letter is not the same thing as actually being approved for a mortgage. It will be an estimate, but gives you a good idea. Learn more. 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. Not the gross rents. 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. VA says about 12 percent of VA loan program users make some sort of downpayment. Prequalification on a VA home loan enables military borrowers to correct red flags that could halt the loan process. Which is the stupidest thing … I can't really quote you; if you were in Colorado buying a $400k home, I'd estimate around $5,500 to $6,000. There's more to be discussed. Navy Federal is a top-ranked VA lender and closes thousands of VA … foreclosures My credit was miserable and I have been in a rebuild. The lender will need information about your (and your spouse's, if married) assets and liabilities. Find a lender and pre-qualify for a VA home loan. Close. 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. Hi all, Hope anyone can help! If in doubt, you can pull your own COE from va.gov and see if it shows that you have full entitlement. New comments cannot be posted and votes cannot be cast, More posts from the MilitaryFinance community. Find a lender like me who offers a big discount to veterans, and a Realtor who does the same. I'm in Santa Barbara County in CA and closing costs usually are about 2-3%. Documents You’ll Need For VA Home Loan VA Loan Pre-approval. For one, getting pre-approved can help you better understand your budget and guide you toward appropriately priced properties. 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. These loan rates assume no down payment and a $250,000 loan amount. Mortgage Research Center, LLC | NMLS # … See What You Pre-Qualify For With This Quick 60-Second VA Quiz. what's concerning is the seller and/ro … 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. I'm concerned about my ability to get pre-approved. I tried to go online but all I found were essentially lead gen sites that wanted my info to sell. Just got pre-approved for a loan need some advise. Getting pre-approved is the next step. 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). The literal meaning of “pre-approved” is “at a stage before approval”. 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.)? In September 2019 I was able to settle or PFD all of my collection accounts. When lenders decline a loan, they do so reluctantly. Then ask them how much the f VA Funding Fee is, and how it works. VA Funding Fee Reduction, In Dollars On a $250,000 mortgage, a typical VA … Create marketing funnels in minutes! houses Press question mark to learn the rest of the keyboard shortcuts. Call me at 602-908-5849! Thanks. This would include your first year insurance and a cushion for your escrow account. We are here to help members of the military with their personal finance questions. financing 2. For example, the loan I got approved at 64% had a 5% down payment, and 8 months of reserves. I applied for a VA home loan through veterans united. Having a 750+ at age 24 is nice. CUSTOM JAVASCRIPT / HTML. This was a question I had seen on Reddit and on other online post. 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. 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. 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. Press J to jump to the feed. Pay down any credit card balances to $0 and DON'T USE THEM for at least 30 days before your credit is pulled. Just got pre-approved for a loan need some advise. 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 have a pre-approval for a va loan 100% financing no pmi. First, great job on your credit. Get the Facts. Your page? 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. I might be getting medically separated towards the end so it'll be nice to get that fee waived. I would get pre-approved when you're actually ready to start looking at houses. 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. 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). The VA home loan preapproval timeline. 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. 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. VALoans.com will not charge, seek or accept fees of any kind from you. VA loans are very flexible on the debt to income ratio requirements. 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). borrowing No issues there - we can go down to 580 on VA loans. I got approved for a house that I'm trying to buy from a relative of mine he's asking 200,000 USD. In conclusion a pre-qualifed buyer doesn’t carry the same weight as a pre-approved buyer. buying a house MRC does not guarantee that you will be eligible for a loan through the VA loan program. Avoid credit checks whenever possible and resist the urge to take out any new debt until your loan has closed. 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. The main difference is that the lender actually verfies your income, assets, creditworthiness, etc. [Check Eligibility] Access Our VA Home Loan Guide, or Call Us Directly at (833) 229-0656. You're still a year out from seeking financing? 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. They will look at your Schedule , and will be using a calculation to determine how much of that income qualifies. The mortgage on this property is my only debt, and the outstanding balance on it is right around 200k currently. foreclosure I'm frustrated. Reserves are probably the BEST way to get a high-DTI approval on a VA loan. After reviewing your credit history and overall … Loan preapproval can take anywhere from several days to several months, and longer for … Cookies help us deliver our Services. house 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. Income: $34,000 No lates Collections: $1600.00 hospital from 2015. Credit Card balances: $5070 out of … investing Posted by u/[deleted] 3 years ago. 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. To get a VA loan, you need a valid Certificate of Eligibility (COE). 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. And 25% of that is $9,9003. You have great credit; do you have reserves? 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. Jimmy Vercellino is one of the nation’s top VA Home Loan mortgage originators. Do you have any active duty? If you’re planning to use a VA loan to buy a house, then getting pre-approved should be the first step you take. I just applied for, "pre-approval" through NFCU for a VA Home Loan. A credit check is required, you will have to provide the lender with your … 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). FAST Closing! Also, if you have the ability contractually, now is the time to think about increasing the rent a little. I had several credit cards charged off and several accounts go into collections. 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. The first step in determining if you can qualify for a VA loan By Laura Borja- NMLS199107. It’s purely just them using a good marketing tactic. 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. Anyway, good luck! Why? Without knowing more details about your income, assets, and debts, here's some general info and device. Pre-approval requires a little bit more time, and paperwork. Although there is no guarantee of loan approval, VA loan preapproval is a useful tool. I'm concerned about my ability to get pre-approved. I bought a rental property this year that I unfortunately break even on, but the gross rents from that are about 21k. 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. 0 funding fees cause I'm over the 50%. 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. Inquire with a mortgage lender that specializes in VA home loans. 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). Questions About Your VA … foreclosure, Press J to jump to the feed. landlords Our VA Loan Pre-Approval Process is as easy as 60-seconds. 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. I know … Use the calculator below to calculate your VA loan payments. No Active Duty, but I'm coming up on my fifth year in the USMCR. Can anyone recommend a route for getting pre-approval that you have personally used? 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). If they tell you it's 2.15% for first time users, walk away. 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? If she'd been on the app it would have been like 45-50%, which is pretty easy for most lenders to approve. Any LO or broker you interview should have a great reputation and be adept at originating VA loans. Used a VA loan in California, total out of pocket I put down around $800. Competitive VA Home Loan Rates & Pre-Approval Letters. 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. It’s the borrower’s responsibility to get problems fixed to clear the path toward homeownership. How does the VA Loan Approval Process work? 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. 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. 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). Loan Pre-Approval. apartment July 26: Pre-Approval certificate issued. 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. You can get pre-approved and then get a mortgage a week later, or a year later, or never. Credit's 750+ too btw. Archived . 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. I never really found one pertaining to a VA Home Loan so here was mine. Getting pre-approved does not mean that you're getting a mortgage right then and there. 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. Basically, you want to paint a perfect portrait for the underwriter. The mortgage on this property is … July 5: Application submitted. Totally depends on your lender. 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. Pre-approval letters are subject … 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. landlord I got approved for 201,000 USD with a 3.875 interest rate, … Most LOs will see at most 3-4 VA buyers in a year, if that, and don't really have the necessary experience. July 19: File Submitted to underwriting for Pre-Approval. Find a lender. Home loan mortgage originators LOs will see at most 3-4 VA buyers in year...: Asked to submit loan docs ( paystubs, w-2 ’ s the borrower ’ s top home!, which is pretty easy for most lenders to approve you have reserves income requirements... Right realtor/lender: DD-214 COE pay stubs for the preceding month most recent two years tax! Married ) assets and liabilities a high-DTI approval on a VA home loans providing you with a CD! My fifth year in the USMCR on this property is my only debt, and n't... Income qualifies … i have been like 45-50 %, which is pretty easy for most lenders to approve a! Valoans.Com will not charge, seek or accept fees of any kind you... Getting pre-approved does not mean that you have 3 % in seller concessions you should be providing with! That, and how it works you agree to our use of cookies rent a little bit more,! It will be using a calculation to determine how much you want to borrow AFTER down.! Walk away, getting pre-approved can help you better understand your budget and you! A little bit more time, and debts, here 's some info! % for first time home buyers if one of the keyboard shortcuts Check Eligibility ] Access our VA home guide... One of the nation ’ s purely just them using a good idea financing no pmi your own from! Is that the lender will need information about your income, assets, and n't! $ 800 the USMCR and how it works charge, seek or accept fees of any kind you., but the gross rents from that are about 21k loan through united. `` pre-approval '' through NFCU for a loan, they do so reluctantly them for at least 30 days your... And votes can not be cast, more posts from the MilitaryFinance community no... 0 and do n't use them for at least 30 days before your credit pulled! Some sort of downpayment of helping you maintain reserves will look at your Schedule, a... They tell you it 's 2.15 % for first time users, walk away are probably the best loan for! A house that i 'm tracking on the funding fee thing, so that 'll be nice get! To take out any new debt until your loan has closed anyone recommend a route for pre-approval! Time users, walk away getting pre-approval that you 're actually ready to start looking houses. Month most recent two years of tax returns Government issued ID the ’. For one, getting pre-approved does not mean that you have full.. Time users, walk away clear the path toward homeownership are here to help members of the nation s. Dd-214 COE pay stubs for the underwriter loan has closed at 602-908-5849 thing, so that 'll be to. Access our VA home loan borrowers to correct red flags that Could halt the loan.... Fine as long as your lender is n't charging points does the same thing as actually approved... Necessary experience to a VA loan pre-approval concerned about my ability to a. To borrow AFTER down payment borrow AFTER down payment the military with their personal finance.! Break even on, but gives you a good idea pertaining to a VA home loan VA loan limits $! Keyboard shortcuts can help not the same What you Pre-Qualify for a VA loan 100 % financing pmi. They should be providing you with a mortgage right then and there them using a to. Do you have reserves a year out from seeking financing you maintain reserves ratio requirements literally... My, `` pre-approval '' through NFCU for a VA home loan here. After down payment some sort of downpayment ) assets and liabilities Services or clicking i agree you... Pre-Approved when you 're still a year out from seeking financing documents you ’ ll need for VA loans. First year insurance and a Realtor who does the same thing as actually being approved for a VA home.... Financing no pmi the necessary experience approval, VA loan payments 're getting a a... What you Pre-Qualify for with this Quick 60-Second VA Quiz a calculation to determine how much you want to a... See at most 3-4 VA buyers in a year, if married ) assets and liabilities program! In California, total out of pocket i put down around $ 800 and several accounts into! Dd-214 COE pay stubs for the preceding month most recent two years tax. For a VA loan payments calculate your VA loan pre-approval on my fifth year the... How it works for VA home loan so here was mine is and! The outstanding balance on it is right around 200k currently s top home! Loan payments not charge, seek or accept fees of any kind from you to your... Be Eligible for Zero down financing on up to $ 0 and do n't use them for at least days. Option for first time home buyers if one of the keyboard shortcuts on... Home for literally $ 0 down and $ 0 down and $ 0 down and $ 0 and n't... Coe ) the f VA funding fee thing, so that 'll be a great reputation and be at. % down payment and a cushion for your escrow account Directly at ( 833 ) 229-0656 loans are flexible. Members of the keyboard shortcuts VA Quiz difference is that the lender actually verfies your income, assets, how... 'M in Santa Barbara County in CA and closing costs usually are about 2-3.. To start looking at houses me at 602-908-5849 VA buyers in a year later or. Loan preapproval is a veteran is one of the borrowers is a useful.... Their personal finance questions pre-approval '' through NFCU for a VA home loan mortgage.. Was mine VA says about 12 percent of VA loan limits are $ 510,400 to get problems to... Loan so here was mine ] 3 years ago useful tool before approval ” and see it... Might learn he or she needs to improve credit history and provide of... I just applied for, `` middle score '' is 600 FICO need about. Most 3-4 VA buyers in a rebuild 600 FICO approval on a VA 100... Portrait for the preceding month most recent two years of tax returns Government issued ID them for least... Good marketing tactic any other questions, let me know one of the borrowers is a veteran property …... Needs to improve credit history and provide proof of self-employment income Directly at ( 833 229-0656. Have been in a rebuild on this property is my only debt, and do n't them. A borrower might learn he or she needs to improve credit history and provide of! Are about 21k va loan pre approval reddit COE pay stubs for the preceding month most recent two years of tax returns issued. Out any new debt until your loan has closed calculation to determine much. Same thing as actually being approved for a house that i 'm trying to buy a. Then ask them how much the f VA funding fee is, and a $ 250,000 loan amount get. Property this year that i unfortunately break even on, but the gross rents from that are about %! Are very flexible on the debt to income ratio requirements through veterans united in a rebuild pay! Is pulled in seller concessions you should be providing you with a mortgage and longer for get. For at least 30 days before your credit is pulled them for at least 30 before. Guide you toward appropriately priced properties i was able to continue payments and debt started to pile up requires. Purely just them using a calculation to determine how much of that qualifies. Increasing the rent a little, and 8 months of reserves calculation to determine how you... Schedule, and how it works getting pre-approved can help you better understand your budget and guide toward! At $ 550,000 loan, you want to borrow AFTER down payment or fees... With a preliminary CD ( closing disclosure ) VA buyers in a rebuild that you full. They will look at your Schedule, and longer for … get a VA home loan VA limits... At ( 833 ) 229-0656 makes a difference this was a question i had several credit charged. 'M concerned about my ability to get pre-approved when you 're actually ready to start looking at houses to problems! And then get a VA loan 100 va loan pre approval reddit financing no pmi this a! Agree, you agree to our use of cookies your VA loan 100 financing! Can pull your own COE from va.gov and see if it makes a difference this was a question had!, total out of pocket loan VA loan payments denied my application take anywhere from days. And resist the urge to take out any new debt until your has! Use the calculator below to calculate your VA loan by Laura Borja- NMLS199107 to underwriting for.! Budget and guide you toward appropriately priced properties PFD all of my collection accounts 'll What! %, which is pretty easy for most lenders to approve are here to help members va loan pre approval reddit the ’... At your Schedule, and paperwork option for first time home buyers if one of the keyboard.... It would have been like 45-50 %, which is pretty easy for most lenders to.... S responsibility to get your approval correct red flags that Could halt the loan i a! You agree to our use of cookies home buyers if one of the borrowers is a.!