Provo, UT, July 12, 2006 --(PR.com
)-- LowVARates has worked with Veteran Home Owners for many years. LowVARates has found that many future or prospective home owners, whom are in the process of looking for a home, don't quite understand how important it is to prepare themselves for owning a home.
Getting approved for a VA mortgage should be very simple, however most veterans don't understand the basic rules and or principles that could guarantee them a much better chance of getting approved.
Here is a compilation of the 7 most influencial and important traits of a GOOD VA borrowers and home owners.
7 Habits of Highly Effective Veteran Home Owners!
1. Make on time payments. For a full 12 months prior to buying a home make every single payment you have on your consumer credit ON TIME! A VA mortgage does not require a high FICO credit score, as a matter of fact you can get a VA loan with no FICO score at all. However, the VA does require that you show a full year's worth of on-time payments. Think about it, if you can't make a cell phone payment on time, what are the chances of making your mortage payment on time?
2. Don't carry a high balance to available credit. It is very bad looking if you carry high balances on your credit cards or other debts. Assume you have a credit card with a maximum credit limit of $3,000. However, if you are showing a monthly balance of $2,800, then this will hurt your credit worthiness. VA mortgage companies want to see that you have been granted credit by others, because this shows you are capable of borrowing money and paying it back, however if you are always carrying around a large balance then you appear to live to the maximum and thus again you are labeled a bit more risky.
3. Don't close your credit cards/lines. A very misunderstood fact about loans in general is that a home owner will appear better if they pay off all their debts prior to applying for a VA mortgage. This is completely untrue. Banks/lenders want to see that you are able to receive credit from others and that you can control that credit. If you close all your accounts it appears as though something bad has happened and you had to get rid of all your debt. This act alone can greatly damage your credit. Use your credit cards, but use them wisely. It is recommended to charge them up a little then to pay them off each month.
4. Keep a stable job. It is very important that you are not jumping from job to job especially if your jobs have nothing in common. I basic principle in getting into a VA mortgage is to prove to the Lender that you are not RISKY and if you are going from car mechanic to insurance agent, then you appear as though you are still not sure about your career choice and essentially make yourself appear as a risk.
5. Apply early for your Certificate of Eligibility (COE). You can download the form right from our website by going to our links section. If you are already working with a preferred VA mortgage company assigned to you by LowVARates then there is a chance they have ordered you one offline via ACE. It is imprtant to understand that even if you are approved for a VA loan, that without your COE form you cannot get a VA loan. Your COE is the VA's was of proving to the lender that you have served sufficient time in the military and are eligible for a VA loan.
6. Work with a Real Estate agent. Many people think that it is a waste of money to work with a Realtor because of the fees involved. It is important to realize that only the seller pays the real estate commissions and that the veteran buyer does not pay the real estate commissions. We suggest using an agent because it will make negotiating a good price and getting the seller to pay some or all of your closing costs much easier. Buying a home with a VA loan can seem difficult at times but a good mortgage company like our preferred partners and a good real estate agent can make the process much more simple.
7. Work with a preferred partner or preferred lender from within our network. Perhaps the biggest key to succesfully buying a home with a VA loan or refinancing your current VA loan is to use a mortgage company that fully understands VA loans. Working with a preferred lending partner of LowVARates will ensure you that your va loan process will flow smoothly from start to finish.
LowVARates.com is proud to be filling a void in the online mortgage information industry. They feel that too many veteran home buyers are forced or coerced into NON VA loans and if they had worked with a more qualified VA lender or been more educated themselves on VA loan products, that these veteran home owners would be in a better loan today. It is their goal to bring VA home loan approval to more veterans than has ever been done before.