Because VA loans work differently from conventional mortgages, borrowers like you should do the homework. The goal is to ensure you are on the right track throughout the application process.
When you apply for VA loans in Arizona, there are several things you should prepare to increase your chances of getting a great deal.
Here’s your to-do list:
- Determine your eligibility: Check if you meet the eligibility requirements for VA loans. You can read the relevant information, including eligibility requirements, on the VA website or contact a VA-approved lender.
- Get your Certificate of Eligibility (COE): COE is one of the requirements when applying for a VA loan. You can apply for this certification through the VA website or ask your lender to help you obtain it.
- Check your credit score: Your credit score will play a key role in determining your eligibility for a VA loan and the interest rate you qualify for. If your credit score is not that healthy, take steps to improve it (there are plenty of good resources online about how to boost your credit score, so make sure you check them out).
- Calculate your debt-to-income ratio: VA lenders will look into your DTI ratio. It determines your ability to repay the loan. Calculate your monthly debt payments and compare them to your monthly income to determine the ratio.
- Gather your financial documents: Financial documents such as bank statements, tax returns, and pay stubs are requirements when applying for VA loans in Arizona. Gather these documents ahead of time to expedite the process.
- Research VA-approved lenders: Look for VA-approved lenders in Arizona, and compare their rates, fees, and services. Choose a lender that meets your needs yet offers competitive rates.
- Figure out the loan amount you need: Decide how much you want to borrow and how much you can repay each month. Use a VA loan calculator to estimate your monthly payments.
By taking the above steps when applying for VA loans in Arizona, you can increase your chances of approval and secure a loan with favorable terms.
For VA loan applications in Arizona, consider HomePlus Mortgage.