Getting into a house is very easy when you have a good loan and mortgage plan. Millions of people have purchased their dream houses through however they are some people who will miss out on VA mortgages on rare occasions. The following are some of the things you can do when your VA home mortgage is declined.
Improve Your Credit Score
Financial lenders are very concerned with the number of credits that you owe other people and institutions. Your credit is used to determine your credibility, and the poor your credit score is, the more the VA loans lenders may decline your requests.
A poor credit score shows that you are a high risk to the lenders and may be unable to repay their mortgage. However, you can still work on your borrowing behavior and repay some of your creditors. Improving your credit will show that you are committed to repaying your loans.
Increase Your Income
Your VA loans provider will be very concerned about your net and gross income. The higher the income levels, the higher the chances of getting the VA mortgage. In this case, work on your monthly and annual income, ensure that your income can meet your daily expense. Again. While discussing income, consider the tax factor and always meet your tax obligations on time.
Always keep in mind that lenders are in business, and after profits for this matter, they will therefore have to use your income to determine the consistency by which you will repay the loan. Improving your income level will therefore show lenders that you can repay your loan on time together with accrued interests.
They are various mortgage providers, and all have different requirements and qualifications. Another man’s meat is another man’s poison; what one lender may despise maybe what other lenders prefer to work with. They are lenders who prefer to work with people who have learned from their mistakes, such as poor financial decisions.
Some lenders target different classes of customers; as such, your loan application could be declined because you approached the wrong dealers. It is important to assess the type of clients that your lender targets. They are lenders who target high-income earners while others target the average income earner.
Check Your House Requirements
This is an important factor that many ignore when acquiring VA mortgage plans. The house you are planning must meet certain criteria such as it must be habitable, well supplied with power and water. Your lender will always send an evaluator to determine the house’s condition that you want to acquire.
Lenders will access the value of the house and its state to determine the risk they are taking. For example, soon, the house value will have appreciated or declined. Your proposal could be denied when it is determined that the house value is likely to depreciate. You should find out more about how your house should look like when acquiring VA loans.
Request For Manual Underwriting
Your loan might have been declined because they were computational errors with the lender’s machines and computers. With the increasing use of technology, errors can go undetected. Many people have fallen victim to technology despite having satisfied all the requirements.
Thus, when you feel that your loan was declined to errors in technological-based underwriting, you can request manual underwriting that is very accurate and precise.
Meet Your Debts
Many people do not meet their financial obligations, and as such, their debts are high. Your lender will always check how you handle your debts, such as your car loan and credit card balances.
The higher the debt you have, the greater the threat to the lenders and the less the likelihood of your VA loans being approved. Always repay your debts promptly, as this could help increase your chances of getting the VA mortgage plan in the future.
Many people save money to meet basic needs and emergencies; however, savings require discipline. You should always set a portion of your income aside to help you achieve long-term goals such as acquiring a home.
When acquiring a house mortgage, you will have to pay a down payment which affects the lender’s perception towards you. A higher down payment proves to the lender that you will repay the remaining installments on time. You can consult your financial advisor on how you can start a long-term savings plan. Find out more on savings and house loans here.
Above are just some practical steps you can undertake when your loan plan has been declined. It is, however, important to visit your lender before taking any of the steps. They can clarify the reasons as to why your loan request was denied.