VA Mortgage and Closing Costs

How Can You Cut Down Or Eliminate Your Closing Costs?

Many veterans have the mistaken impression that the closing costs for a home loan are actually covered by a VA mortgage.

This is not true, although you can do a number of things to either minimize or totally eliminate many of your closing costs.

Most notably, this effect can be produced by thorough structuring of the real estate contract that you obtain.

When you apply for a loan, the amount may be the purchased price or the appraised value of the house, which ever ends up being less in addition to a VA funding fee.

This means that if you would like to have your closing costs to be included in the loan, you need to increase the price.

You must also include a stipulation in the agreement, that says the seller will pay the closing costs and other pre-paid expenses equal to the increased price.

This will eliminate your closing costs. Your appraisal value must also equal the value of the increased price for you to benefit from this arrangement.

Don’t be afraid to stipulate your requests. You may be surprised at the terms you put forward being recognized.

VA Loan Eligibility is Enhanced with Improved Credit Rating

VA Loan Eligibility is Enhanced with Improved Credit Rating

Since debt ratio is such an important factor that determines your eligibility for a VA loan it is advised you concentrate some time and effort to repairing or improving your credit if necessary.

The goal is to deal with problems in your credit history that may hinder your opportunities.

If your credit rating is excellent this of course will enhance your VA eligibility.

It is recommended that you speak to a credit counselor to find the best strategies for producing real results and strengthening your credit rating.

There are some basic steps that you can take to increase your chances. High interest debt sources like credit card should be tackled before moving on to lower interest loans since they can have the most impact on your credit rating.

Focus on eliminating as much credit card debt as possible. You will start to see real improvement on your debt ratio if you can limit how many cards you have and keep that single card paid regularly for 6 months or more.

Improving your credit card rating is good habit training for when your VA loan is approved. Minimizing debt and making regular payments puts you in an excellent mind set for the future.

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