VA Home Loan Pre-Qualification
If you’re looking to become a homeowner, a smart first step is to establish pre-qualification status for a loan. This is especially important for a military homebuyer!
By obtaining pre-qualification status, you can start the homebuying process confidently and identify any financing or eligibility hurdles, such as a low credit score. Pre-qualification is also a way to help you, the homebuyer, compare loan rates and terms in a safe, non-binding way. That means you don’t have to go with one lender because they pre-qualified you. You can shop around for what’s best for you.
Pre-qualification also helps the lender assess your credit eligibility, estimate how much you can obtain with your loan, and gather documents they’ll need from you along the loan process. Pre-qualification includes a hard credit check, though; your credit score could drop slightly after this. Your credit score is what lenders look at when deciding to grant you pre-qualification status. Shoot for a score of 620 or higher if you want to pre-qualify for a VA home loan.
Lenders will also look into your current place of employment, monthly income numbers, monthly liabilities, assets, and delinquencies or defaults on other loans as part of the pre-qualification process. When you’re pre-qualified for a loan, you’ll have a better understanding of your financial profile, credit portfolio and what you can afford when it’s time to buy a home. It’s a wise first step in the homebuying process.
Learn More About Applying For A VA Loan