Are you a veteran or military duty officer and planning to buy a home? Then, a VA loan program can help you with this. Guaranteed by the United States Department of Veterans Affairs, it is a specially designed loan program. With this, if veterans default, the VA will pay the amount.
And the best thing is that you can get a VA home loan bad credit in Houston. But how? Read on to get your answer –
Check and avoid credit mistakes
There are a lot of things that can drastically affect your credit score, and the key one of them is your credit mistakes. Are you making credit mistakes even without realizing these? Check these. The common ones are not paying the debt on time, providing wrong information, and applying for new credit. If your credit score is already low, these mistakes can drastically affect your credit score. So, ensure not to make these mistakes. Besides, you should check whether there are any credit errors. You never know when an unconscious error decreases your score. If there is any, rectify these as early as possible. Even a little increase in the credit score can help you a lot.
Look for VA lenders
As it is already mentioned, the U.S. Department of Veterans Affairs does not approve the loan, it is approved by the VA lenders. And as there is no preset guideline that the lenders need to be followed when approving the loan, the lenders set their requirements individually. So, the eligibility criteria vary from a lender to another one. When one asks for a high credit score, another one may ask for something else. Without comparing, it would be difficult for you to understand, who is asking for the lowest mortgage rate. This is why; you need to ask for quotes from different lenders. Once you get the quotes, compare it, and then opt for the one that will be suitable for you.
Arrange a hefty down payment
Your down payment is the amount that you have to pay when you buy something on credit. It applies to the home buying process. When you apply for a VA home loan program, you need to come with a down payment amount. Although the VA does not ask for a down payment, lenders ask for this, and the requirement varies. One asks for a low down payment while another one can ask for a high down payment. But if you want to be on the safe side, it is better to come with a big down payment when you are about to apply for a VA loan with a low credit score. High down payment helps you get the approval with low credit. Besides, it can also help you qualify for the lowest mortgage rate. So, make effective measures to come with a high down payment.
Following these things can help you to get a VA loan approval with low credit. So, work on all these and ensure an approval from a lender.
Author Bio: Joan Gallardo, a Senior Loan Officer, with 20+ years of experience, here writes on 2 questions to ask the best mortgage lender in Houston when you are about to choose one of the first time home buyer programs in Houston.