VA Loan Common Misconceptions
What does the VA use to approve VA mortgage loans?
Before anything else, it is a good idea to note that VA loans may seem complicated and confusing, especially if you’re a first-time buyer. But the reality is, there are actually several misconceptions about VA financing program, and one of the most pressing concerns is who actually issues the loan. You have to remember that VA only guarantees the loan; it does not – and will never – guarantee it. If you already know this beforehand, then you will have a good overview of what VA actually does during the lending process.
Who approves my loan?
According to the VA, several – or maybe even all – of the VA home loans are actually approved by the lender, using as reference the lending criteria and guidelines which were prepared by the VA. To get a good idea of the whole loan application process while the servicing of the loan is still underway, many people take time to discuss the chances of VA actually approving or declining a particular loan. In fact, there are a lot of available articles which talk about VA loans – even those which revolve around particular agencies approving specific loans. In most of these cases, the topics are really all about the rules that have to be under government laws.
What is required for my loan to be approved?
In a nutshell, in order for a veteran to be deemed eligible for a loan, VA first looks into two basic methods set in the VA mortgage guidelines to determine if the applicant is indeed qualified. Before anything else, the primary consideration would have to be your income, or what is otherwise considered as the residual income method. You have to determine: can you really afford to shoulder the daily costs of a VA home loan? Do you already have a lot of debts that it won’t be possible for you to actually take care of monthly mortgage on top of everything else? Furthermore, you also have to take into account other important things, such as your credit card and car payments.
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