VA Home Loan Process in Houston: Things a Borrower with 550 Credit Score must Know
If you qualify, the VA home loan is the best possible mortgage. The loan product helps the veterans, military service members, and eligible spouses to earn homeownership at an affordable range. With no down payment and mortgage insurance, the loan has a low credit score requirement.
Yes, VA home loan credit score 550 in Houston, TX is easy to qualify, so do not fret. The Department of Veterans Affairs does not set the credit score, but the lenders do. So the minimum credit score generally stands at 550. When the conventional loans are screaming for excellent credit scores, VA loans offer the much-needed relief. However, many borrowers are yet to find out the VA loan application process. Here is a brief guide to the VA loan process, which is followed in Houston as well.
Find a VA-Approved Lender
On the surface, it might seem every lender can offer the VA mortgage. Now, the reality is a lot different when you start digging deeper. You need to find a lender whom the U.S. Department of Veterans Affairs has approved. Many lenders provide only government-backed mortgages like VA; again, other lenders exclusively approve VA loan programs for the veterans and military members. Choose a VA lender who has experience of approving the mortgage.
Get a Certificate of Eligibility
The experienced lenders are familiar with the ways to help the borrowers obtain COE or Certificate of Eligibility. The COE is proof that the borrower meets the initial eligibility requirements. This step also indicates how much entitlement the borrower can get, and the Department of Veterans Affairs can guarantee on the mortgage. To get hold of the certificate, let your lender know about the necessary information related to your military duty. It is possible to get access through an online portal, but you can ask for the lender’s help, as well. In case you are unable to receive the online COE, you can get it by mail. When a lender has the right source of information, he can help you out directly.
VA Appraisal and Application Process
When you get hold of a signed purchase document, it is time to finish the documentation. As soon as the lender has the agreement, he will order the VA appraisal. Only a VA-certified appraiser can carry out this step and further assess the home value for financing. So, the appraiser must observe whether the price you have agreed to aligns with the present value. Another thing to check is whether the property has passed the VA minimum property standards. When you are anticipating the appraisal documents, you can submit your documents to the lender and prove your eligibility.
The last step is closing in after being approved by the designated underwriter. At the time of closing, you will get ownership of the property from the previous owner. In this stage, you will sign the papers and agree to the terms. Once the documents are signed, the key is yours. If there is anything that seems confusing, send your queries to the lender.
Author Bio: Joan Gallardo, a Senior Loan Officer, with 20+ years of experience, here writes on 2 questions to ask the best mortgage lender in Houston when you are about to choose one of the first time home buyer programs in Houston.