VA Loan Prequalification

A VA approved lender; Mortgage Research Center, LLC

. Not affiliated with the Dept. of Veterans Affairs or any government agency.

Benefits and Challenges of Homeownership

Financial Preparations for Homeownership

What is Credit, and Why Is It Important?

Where to Start: Lender or Real Estate Agent?

Properties You Can Purchase With a VA Loan

House Hunting & Property Guidelines

What to Do if Financial Hardship Occurs

VA Interest Rate Reduction Refinance Loans (IRRRL)

Where to Start: Lender or Real Estate Agent?

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We can help. What type of loan are you looking for?

Are you looking to Purchase or Refinance?

Where is the property youd like to finance located?

In which state is the property you are financing located?

Select the property location

Select your metropolitan area

Depending on your rate, a refinance could save you money each month.

Its okay if you dont know the exact balance. Just give us your best estimate.

, I do not currently have a VA Loan

Are you financing a manufactured home?

No, I am not financing a manufactured home

Yes, I am financing a manufactured home

When are you planning to make your home purchase?

We can help find the information you need to feel confident about getting a home loan.

Its okay if youre not sure. Just give us your best estimate.

Your information is secured by 256-Bit SSL encryption.

Your information is secured by 256-Bit SSL Encryption.

What is your current street address?

Your information is secured by 256-Bit SSL Encryption.

By submitting this form, I acknowledge and agree to theprivacy policyandterms and conditions; I consent totransaction communications, to allow my information to be shared withlending partners, and to receive autodialed calls and/or text messages from Veterans United Home Loans, its lending partners, or itsaffiliatesat the number provided. Consent is not a condition of service.

Youre almost there! How would you like to proceed?

I want to complete my prequalification over the phone.

Get step-by-step help through the process with your dedicated Loan Specialist.

Go at your own pace with our convenient online prequalification tool.

Bygoing through prequalification, buyers can identify and start working on potential financing or VA eligibility roadblocks. Does your credit score fall a bit short? Is your income likely to be a problem?

Prequalification is the time to isolate and start addressing these issues.

Once youve been prequalified for a VA home loan, the next step is loan preapproval.

You can think about loan prequalification as a first interview of sorts. Prequalification helps lenders achieve three main goals:

Assess a borrowers service and credit eligibility

Estimate the loan amount a borrower may obtain

Begin gathering documentation needed for preapproval and loan underwriting

The prequalification processalso holds key benefits for prospective borrowers. Its a non-binding step you can take with multiple lenders, which will help you compare rates and terms. Its typically a 10-minute conversation.

Along with checking your credit, lenders will also seek to learn more about your employment, your income and your overall financial and homebuying goals.

Different lenders may take different approaches to the prequalification conversation. But its common for loan originators to ask you about:

Your current and previous employment

Your gross (pre-tax) monthly income

Your assets, like bank accounts and retirement funds

Your monthly liabilities, like day-care costs, child support or alimony

Any previous bankruptcies, foreclosures or judgments

Any delinquencies or default on federal debts, like student loans

Whether youve recently owned a home

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Ready to Get Prequalified? Start Here.

We can help. What type of loan are you looking for?

Are you looking to Purchase or Refinance?

Where is the property youd like to finance located?

In which state is the property you are financing located?

Select the property location

Select your metropolitan area

Depending on your rate, a refinance could save you money each month.

Its okay if you dont know the exact balance. Just give us your best estimate.

, I do not currently have a VA Loan

Are you financing a manufactured home?

No, I am not financing a manufactured home

Yes, I am financing a manufactured home

When are you planning to make your home purchase?

We can help find the information you need to feel confident about getting a home loan.

Its okay if youre not sure. Just give us your best estimate.

Your information is secured by 256-Bit SSL encryption.

Your information is secured by 256-Bit SSL Encryption.

What is your current street address?

Your information is secured by 256-Bit SSL Encryption.

By submitting this form, I acknowledge and agree to theprivacy policyandterms and conditions; I consent totransaction communicationsand to receive autodialed calls and/or text messages from Veterans United Home Loans or itsaffiliatesat the number provided. Consent is not a condition of service.

Youre almost there! How would you like to proceed?

I want to complete my prequalification over the phone.

Get step-by-step help through the process with your dedicated Loan Specialist.

Go at your own pace with our convenient online prequalification tool.

With your permission, lenders conduct whats known as a hard inquiry to obtain your current credit scores. Ahard credit inquirycan ding your credit score, although its typically only a few points, if any. When youre shopping for a mortgage, the credit bureaus wont count every hard inquiry against you. Instead, theyll typically consider all lender inquiries within a 45-day period as one single check, which minimizes any harm to your credit and allows you to comparison shop.

The VA doesnt have a built-in credit score to be eligible for this program. But its important to remember the VA doesnt make home loans. Instead, it basically provides a form of insurance on behalf of qualified borrowers. Its ultimately up to lenders like Veterans United to decide whether to make a home loan.

Because lenders take on most of the risk with each loan, theyre allowed to introduce requirements and standards that go beyond what the VA wants to see. Youll often hear these additional requirements called overlays. A credit score cutoff is among the most common.

Different lenders can have different credit score requirements. You may also need a higher score if youve experienced a recent bankruptcy or foreclosure or if youre seeking a jumbo loan. Generally, a 620 FICO score is a pretty good barometer for VA lenders.

In addition, any co-borrowers on the loan would also need to meet the lenders credit score requirement.

If youre purchasing in one of the nationsnine community property states, lenders can consider your spouses credit and debts even if he or she wont be on the loan.

Lenders will also get a good look at your major monthly debts from your credit reports. Theyll use those and the income information you provide to calculate an initial debt-to-income (DTI) ratio. For VA loans, this key mortgage industry metric looks at your monthly debts in relation to your overall monthly income.

Theyll calculate this figure based in part on the loan amount youre seeking. And that means flexibility can be important for prospective borrowers whose DTI ratio is on the edge. Depending on the lenders requirements and your unique situation, you may need to seek a lower loan amount to get a workable debt-to-income ratio.

The VA typically wants to see a DTI ratio of 41 percent or less. But its possible to go above that and still secure financing. Lenders will usually have their own maximum allowable DTI ratio. Well take a closer look at DTI ratio in the next lesson.

Low credit and high DTI ratio are two of the most common reasons why some prospective buyers are unable to get prequalified.

So what happens if you dont meet a lenders credit score cutoff? Some lenders may simply send you packing if you fail to meet their credit score requirement. Veterans United takes a different approach.

We created an entire department dedicated to helping service members, veterans and military families improve their credit and get on the path to loan prequalification.

If were not able to prequalify borrowers, they have the opportunity to work with the credit experts in our Lighthouse Program®.

Our Lighthouse Program® consultants:

Identify and help you correct errors on your credit report

Establish a plan to strengthen your overall financial profile

Develop personalized objectives to reduce debt

This is a free service open only to veterans, service members and military families. The Lighthouse Program® has helped more than 17,000 veterans and service members overcome their credit challenges and go on to close on a home loan.

You can talk with a Veterans United loan officer about your credit profile and our Lighthouse Program® at .

Copyright © 2018 Mortgage Research Center, LLC. All Rights Reserved. NMLS ID 1907 (

A VA approved lender; Not endorsed or sponsored by the Dept. of Veterans Affairs or any government agency.Customers with questions regarding our loan officers and their licensing may visit theNationwide Mortgage Licensing System & Directoryfor more information.

1400 Veterans United Dr.,Columbia,MO65203