As a qualified Veteran or current military servicemember, using a VA home loan to buy your new house is a great option. The application process is fairly straightforward and interest rates on the loans themselves are lower than conventional mortgages. Though most Veterans will qualify for the loan quickly, there’s always a chance that your application will be denied. Here are a few of the most common reasons lenders deny VA loan applications and what you can do to avoid making those mistakes yourself.
The most common reason why VA home loan applications get denied is because of errors on the application itself. Lenders can’t issue loans unless they’re sure that your personal and financial details are correct. Before you submit your application, take the time to review each statement you make and numbers you enter. If everything looks correct, go ahead and submit. If you identify errors, correct them immediately. This way, the lender will be able to review your application and make a decision without waiting for you to amend the application.
Changes to Your Credit Score
Low credit scores don’t automatically prevent you from qualifying for a VA home loan, but they can be an issue for some lenders. Anytime you borrow money or open a new credit card, there will be a change to your score. If your score drops during the application process, the lender may deny your application. Remember, the lower your score is, the less comfortable lenders will be giving you the money. They want to know that you’ll be able to pay it back in full without a problem. Avoid taking on new debt after you apply, to avoid any drops in your credit score during the application process.
Issues With the Property
When you use a VA home loan to buy a house, it must meet the minimum property requirements. The property needs to be in good repair with a solid roof, windows, siding. It also needs functioning plumbing and electrical systems. If the home inspection uncovers issues that make the house “unlivable” according to the VA standards, the loan will be denied. Look for homes that are in move-in-ready condition whenever possible.
Simplify Your Application
If you’re looking to buy a home with a VA home loan, make sure you’re working with the right company. Contact Mortgage Solutions Financial and let our team help you navigate the application process. We’ll do everything we can to help you get into the home of your dreams quickly.