Table of Contents
- Eligibility
- Applying for a VA Home Loan Pre-Approval
- Qualifying for Pre-Approval
- What Happens if I am Denied?
- Summary
Eligibility
To get a VA Home Loan pre-approved, first you must meet the eligibility requirements set by the Department of Veterans Affairs. The VA Home Loan program is available to veterans, active-duty service members, reservists and National Guard members, as well as eligible spouses of veterans and service members who died in the line of duty or from a service-related disability. To be eligible for a VA loan, you must meet one of the following criteria:
- Have served for at least three years of active duty in the Army, Marine Corps, Navy, Air Force or Coast Guard;
- Be a reservist or National Guard member who has served for at least six years;
- Be the surviving spouse of a service member who died in the line of duty or from a service-related disability.
Applying for a VA Home Loan Pre-Approval
Once you have determined that you are eligible for a VA Home Loan, you can contact an approved VA lender to start the pre-approval process. The lender will ask for information such as your employment and income, credit history, and assets. The lender will then take the information and review it to determine whether you meet the requirements to get pre-approved.
Qualifying for Pre-Approval
To qualify for a pre-approval, a VA lender will review:
- Your employment and income – The VA requires lenders to verify that a borrower has a steady employment and income before they will pre-approve them. The lender will look at your recent pay stubs and employment history to ensure that you have a steady job and income.
- Your credit history – The VA requires that borrowers have a credit score of at least 620 before they will pre-approve them for a VA loan. The lender will review your credit report to make sure you meet this criteria.
- Your assets – The VA requires that borrowers have a minimum of $10,000 in liquid assets before they will pre-approve them for a VA loan. The lender will review bank statements and other financial records to determine if you meet this requirement.
What Happens if I am Denied?
If you are denied pre-approval for a VA Home Loan, there are a few things you can do to improve your chances of getting pre-approved.
- Improve your credit score – Your credit score is one of the most important factors in determining whether or not you will be pre-approved for a VA loan. If your credit score is too low, you can work on improving it. This can be done by paying off any outstanding debt and making all payments on time. You should also review your credit report for any errors and dispute any that you find.
- Increase your liquid assets – Another important factor in determining pre-approval is your liquid assets. If you don’t have enough liquid assets, you can try to save up or try to find other sources of income.
- Find a co-signer – If you are unable to qualify for a loan on your own, you can try to find a co-signer. A co-signer is someone who agrees to sign the loan paperwork with you and will be responsible for the loan if you are unable to pay it back.
Summary
Getting pre-approved for a VA Home Loan is an important step in the home buying process. To get pre-approved, you must meet the eligibility requirements set