The credit score is one of the important parameters that can determine one’s ability to get approval for a home loan. While a high credit score enhances your possibility to get approval, a low score lowers it. But if you are a military professional, who has a bad credit score and want to buy a home, then a VA loan will be the go-to choice for you.
Guaranteed by the United States Department of Veterans Affairs (VA), this loan has relaxed requirements, even in case of the credit score. So, you can easily opt for one of the best VA loans for bad credit in Houston. But to ensure your status as a veteran or a retired military professional and to cover up your credit score, you should come with these things-
- Certificate of eligibility
Most veterans often forget or make the last-minute rush to get the certificate of eligibility. But you should not do this. Before your lender approves your loan application, he or she will want to know the status of your entitlement. Postponement in getting this form will consequently affect how soon you get the loan.
Coming with when applying for a loan can save your stress and make the whole process smooth. There are diverse ways through which you can get the certificate. Your lender can help you with this process or you can apply for it on the VA website.
- DD 241
You need to prove that you are or were a service member to get a VA loan. The DD 214 or Certificate of Discharge from active duty is the perfect shot at this. Without this, you will not be able to prove that you once served, making you ineligible for VA loans. No loan will be disbursed without this. And approaching a mortgage lender without it would be nothing but a waste of time.
You should keep in mind that the certificate takes some time to be released after the application. So, in case you are looking to get a VA loan, you should start the application process earlier. It may take a few months to be released. So, start the process early.
- Down payment
Have a low credit score and still not saving for the down payment? You are making a grave mistake. Though the VA claims to offer the loan with 0% down, VA lenders always prefer the borrowers, who come with a hefty down, especially when the credit score is low.
So, with low credit and no down payment, it will be daunting for you to get the loan approval from the lenders. If you want to be on the safe side and get the loan approval early, then you should save for a down payment.
So, come with the mentioned things and anything more if your lender asks for, and ensure approval for a VA loan easily.