The biggest step when you are planning to make home purchases is the pre-approval stage. It is an indication to the lenders that you are serious about making the purchase and it also shows that you have the buying power or purchasing power to buy the home. You can contact VA loan experts in Maple Grove MN to advise you accordingly on the pre-approval for the VA home loans. It is, however, important to note that pre-approval does not guarantee that you will get the loans. There is a lot that can shift between the time when you are pre-approved for the loan and the time of closing. For example, if there is a big change in your employment status or even your credit, then this can send some red flags to the lenders.
Talk to VA loan experts in order to learn about some of the pitfalls that could veer you off track if you are working hard to get a VA loans. Some of these pitfalls include the following:
You Slip Up in Credit
When you are applying for the VA loans and you have been pre-approved for the home loans, you must work very hard so that you can stay on top of the credit. Do not let it slip away from your grasp and jeopardize your chances of getting the home loans. If you are struggling to keep a lid on the credit, you can talk to the VA loan experts in Maple Grove MN in order to advise you accordingly.
The most important factor is to make all your payments in time. Before closing, lenders are going to check up on your credit once more and if they see a blot in your credit profile, they are unlikely to approve. During this time, for example, you must avoid the temptation to open new credit lines and these could potentially hurt your credit scores and this is likely to jeopardize your pre-approval which has brought you closer to getting your loans. Check First Class Corp for more details.
Making Major Purchases
Avoid making any major purchases during this period until you have closed the loan. Avoid doing anything that could give you a major credit hit during this period such as taking up new debt as this is likely to seriously impact your debt-to-income ratio. The bottom-line is that during this period, you must steer clear of any major purchases that you might be interested in making.
Big Career Changes
Changing your career or even losing your job is likely to put your ability to meet repayment obligations in question. Before closing the VA home loans, the lenders are going to verify your employment status. Granted, this is something that may sometimes be out of your control. Even changing jobs raises some jitters amongst lenders and they might delay the loans closing a bit when you make a job change before closing. The best that you can do during this stage is to let your loan officer know in advance whenever there is any major career change.
Failing to Keep Your Documentation Ready
During the loan process, the lenders or loan officers will frequently request certain documentation. To avoid unnecessary delays, make sure you keep these documents ready so that you can submit them quickly upon request. If there is anything about the loans application process that you are unsure about, make sure you talk to your loan officer or VA loan experts in Maple Grove MN in order to get clarifications in time.