Any Advice When Applying For Va Home Loan?

[mrsvet28]

MrsVet here,

Mrvet and I are interested in a place we found at a good price and we need some peace and quiet now-this city here is becoming not a good place to be--we qualified and got the certificate years ago, but never used it for various reasons , we were free spirited and moved around-but realtor said we need updated one-I sent out the form today to Cleveland - along with the dd214- any advice on what to watch for -and since we are in the remand level does it matter? We are growing weary, now I am getting sick from all of this stress with this claim and need some peace and quiet on the mighty river- where I will write a bestseller!! -Any tips much appreciated Thanks to all-

[broncovet]

Purple

Yes, your credit score on a VA loan matters. Veterans must meet a minimum credit score: Read this for more details:

http://www.homeloans.va.gov/lp.htm

Mrs. Vet.

No, being a Veteran does not guarantee you will get a home mortgage loan. Unfortunately, at least at times, being a Veteran prevents you from getting a loan.

Read this:

http://www.veteranstoday.com/modules.php?n...le&sid=6686

Edited June 16, 2009 by broncovet

[12R3G]

No, being a Veteran does not guarantee you will get a home mortgage loan. Unfortunately, at least at times, being a Veteran prevents you from getting a loan.

Read this:

http://www.veteranstoday.com/modules.php?n...le&sid=6686

True...that's one major difference between VA and commerical loans. Commercial lenders and Realtors have a vested (financial) interest in the house you are buying passing inspection and appraising for at least the contracted purchase price. The lender chooses the appraiser, and one of the realtors/parties (whoever is paying chooses) picks the inspector. The lender wants an appraiser that will figure out a way to appraise the house so the loan will be approved; everyone "wants" the inspector to find no, or few, defects and most importantly, no major, show-stopping, problems. Appraisers who value homes below contract price too often, and inspectors that find too many problems too often don't get phone calls. I read a few articles pointing fingers at the appraisal system we use as being complicit in the housing meltdown by causing homes to be overvalued.

The VA is a bit more involved in the appraisal and inspection process, and doesn't allow the seller (or buyer for that matter) as much leeway in determining what will or won't be repaired based on the inspector's report (which was probably more thorough if a VA inspection). With a commercial loan, what gets (or doesn't get) repaired is pretty much a seperate negotiation between buyer and seller once both have reviewed the inspection report.

Concrete example: I purchased on house that, based on a roofing contractor's inspection, needed a new roof. Using 3 estimates of cost, I negotiated for the seller to pay me 1/2 the average cost of repair at closing. I never replaced the roof--as far as I know, it's still functioning just fine (I sold the house 4 years ago). The VA would most likely required the seller to repair the roof before approving the loan. I am certain my seller would have backed out of the deal at that point--he didn't want to put a dime into repairs.