Is it possible to buy a VA home loan credit score 550 in Houston, Tx? Read below to know the factors that can affect your VA loans.
It is a common misconception that borrowers with bad credit can easily obtain VA home loans. These loans are available to post-active duty military personnel and their families; most military personnel will be eligible based on this requirement. They’re also available with little to no money down and no need for private mortgage insurance. Even though these options have made it easier to obtain a VA loan, there are still minimum credit requirements. If you want to get a VA home loan credit score 550 in Houston, Tx, follow the guidelines to know the factors that can impact your VA loan.
Delays by Borrowers
Additional financial statements and other information may be requested by an underwriter. Make sure you understand the requests, and if you’re unsure, speak with your loan officer. Until all your required documents are reviewed underwriters will not issue final loan approval, so a prompt response is key.
Shift in employment
Maintain a regular work schedule throughout the lending procedure. If you need to make a change, go to your loan officer first. Because a new job’s income may be viewed as unpredictable by an insurer, it’s critical to prepare ahead.
A Credit Change
Before your loan closes, the underwriter will re-verify your credit to ensure you haven’t leased a boat, defaulted on a car loan, or done anything else that may jeopardize your approval. Even little details might raise red flags. Avoid credit checks as much as possible, and hold off on taking on the additional debt until your loan is paid off. As the procedure progresses, keep an eye on your expenditures. Keep in mind that additional debts may have an impact on your debt-to-income ratio, purchasing power, and, ultimately, your ability to qualify for a VA home loan.
Factors You Can’t Control
Relax if you’ve followed the procedures above and maintained excellent communication with your loan officer. Sure, the seller has the option to pull out of the agreement. The examination may reveal a broken foundation or a termite infestation, but you have little control over these issues. We’ve seen almost everything that can go wrong, and we’ll be there to help you get through it.
Errors in Application
Check your loan documentation again. The majority of errors are detected early and quickly corrected, but you don’t want something to sneak between the gaps. Underwriters are meticulous in their work. Income that isn’t verifiable, debt that isn’t declared, and even small inaccuracies like family size might lead to difficulties in the road. The issue causes a delay in certain cases, and it might be a deal-breaker in others.
Even if your credit score is greater than the minimum required by your lender for a VA loan, it may be a good idea to increase it. This is because a higher credit score can help you be accepted for a VA loan and may also help you receive a better rate.