Preparing to start VA loan process

[SeaDog1957]

Hello. I have been thinking about getting a VA loan for some time and have been trying to repair my credit. I have successfully goodwilled 2 30 day lates off (Target and Amazon) I have a 30 day late from June 2012 (Toyota) and a 30 day late from August 2012 (Honda) no other lates in the past 8+years. My credit scores are all 680+. My debt to income ratio is 0.25 (includes utilities). I have 2 car loans active and Parent PLUS student loans (5 from Nelnet). I have 11 revolving accounts (All basically at 0 balance). My credit scores are all 680+. I have been renting the same home and held the same job for 9.5 years. I had a Chapter 7 discharged 9 years ago. I have 2 collections that are 5+ years old, just paid one for $109 and it will show paid on the credit reports probably mid June. The other is for $40 and I have written to the company requesting a bill so I can pay it.

My main question is do you think I can apply for a VA loan now or do I need to wait until September when the most recent 30 day late is 12 months old (I don't want to waste sellers, Real Estate Agent, or Loan Officers time)? Can I get pre approved for a VA loan (I don't mean just someone saying you are eligible, I mean guaranteed funding pending appraisal) before I identify a house?

I'm starting to collect other documents, cancelled rent checks, W2's, I have a COE from 2009 showing I have full entitlement with code 5 (this will be my second use). I am also assuming I can finance the funding fee. Last thing is I have about $12,000 in the bank right now.

If anyone is interested I will report on my journey as I go through this.

Alex

[stpn2me]

I think I may go through the process too. I just got my certificate today. Now I am just shopping banks..

[ludsey]

My husband and I are also looking into a VA loan. I am tasked with lender research, as I recently read not so good reviews from Veteran's United. 

[PBAJ]

Hi,

    My husband and I went through a VA loan yrs ago and I remember the first thing to do was to get a certificate of eligibility from the VA I think you can print off the form from the VA website. It is a bit time consuming to get a response but honestly I think you do not have too much to lose in trying. Once you get the eligibility from the VA it is actually pretty easy to get funding from a lender since you have the VA backing you.

[PBAJ]

A VA loan can help definately if you have little or no money to put down. We had to put nothing down which is definately nice considering how much all other expenses can be when purchasing a home.

[SeaDog1957]

Thanks for the replies. My main question is do you think I can get approved  for a VA loan in July (one of my 30 day lates will be more than 12 months then) or do I need to wait until September when the most recent 30 day late is 12 months old (I don't want to waste sellers, Real Estate Agent, or Loan Officers time)?  These are the only 2 lates on my credit report. I have read some places that the VA allows one 30 day late installment in the past 12 months, but I don't know if that actually happens in the real world of underwriting.

[stpn2me]

I have a couple of 30 day lates from Aug and Dec '12 and it didnt seem to make a difference.

[PBAJ]

I dont think it will make much of a difference they just basically looked at what our income was to see if we could afford it and made sure we did not go on a crazy spending spree. Alot of times they will ask you about something specific if they have questions so I wouldnt worry too much. Being backed by the VA is sooo much easier than just trying to get a home loan on your own because if something does happen and you do end up losing the home they get their money either way. Good luck!

[romey050500]

Hello,

I did a VA loan in April 2012. I had a .57 dti and a 625 credit score. I had about 5 30 day lates within the previous 12 months, and about 25 hard pulls within the previous 6 months. Pretty much no problems. Any questions? I'll answer.

[SeaDog1957]

romey, who did you finance through? Online or local. Thanks.