If done the right way, the mortgage process can be easy for everyone involved. However, very often this is not the case since many borrowers are not aware of the strict regulations regarding this industry which have been put into place in recent years.. Since a mortgage involves lending someone a large amount of money, lenders must know that they are approving a loan that will be paid back. For this reason, a Veteran home purchase begins with an honest VA loan application.
Too many home buyers rush through filling out the VA mortgage application which will only create issues along the way. The first key to the process is completing the application with the necessary and true information.
The VA loan application requires the address of the most recent two years. This is necessary on all mortgage applications. Borrowers need to realize that their various addresses appear on their credit report and will be checked against the mortgage application submitted.
On occasion, a borrower will have a home that is paid in full and believes the lender will not learn about this. However, this information will likely appear on the credit report as a residence or a paid off mortgage debt. Leaving this off the mortgage application will only lead to questions that the borrower will be required to answer along with submitting additional documentation as proof. A home that is paid in full is an asset, however, there are also financial obligations that must be considered for the new VA mortgage application.
As with residences, the VA loan application requires two complete years of employment information. Each of these will be verified by the lender. If there is a lapse of employment, the borrower will be requested to submit a letter of explanation. Again, employment information appears on the credit report which can lead to questions that the borrower must answer.
Debt and Obligations
The VA lender will pull a credit report which will list all of the borrower’s debts. This list will go back many years. Since judgements and liens will appear on a credit report, a borrower should let the lender know upfront of these issues.
Debts such as child support may not appear on the credit report, but in reviewing the loan file, the lender will learn that this is a possibility. Connections with previous spouses may show up on the credit report which will require divorce documents. These documents may then reveal that there are child support and/or alimony being paid by the borrower. This type of debt must be included in the debt calculations since it may continue for many years into the future. Not revealing this during the application process is a major issue since the amount of this debt can cause a VA mortgage to be rejected.
These are just some of the issues that may happen when the details are not revealed by the borrower on a VA loan application. If you truly want to become a homeowner, understand that the Veteran home purchase begins with an honest VA loan application. Present your VA lender with all of the information and let him/her decide what is needed to determine if you qualify for a VA loan.
Need assistance filling out a VA loan application? Feel free at any time to contact me for more information about a VA loan and how you can achieve a 100% VA home purchase.
My loan process was very easy and quick. Not to mention a great loan rate. I couldn't be happier!
Capt Sam T. - US Army
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