CoE for VA loan

[derboesekoenig]

How long does this usually take to receive? I applied on Wednesday with DD214....said they needed me to fill out VA Form 26-1880, which i did and they received Thursday morning. Should I call and follow up on Monday? I would like to get this and start pre-approval ASAP. Timeline goals are to at least put a bid in on something between March 6-14. I'd like to close on something by the first week of June if at all possible.

[VALoanMaster]

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@derboesekoenig wrote:

How long does this usually take to receive? I applied on Wednesday with DD214....said they needed me to fill out VA Form 26-1880, which i did and they received Thursday morning. Should I call and follow up on Monday? I would like to get this and start pre-approval ASAP. Timeline goals are to at least put a bid in on something between March 6-14. I'd like to close on something by the first week of June if at all possible.

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Hi Derboesekoenig,

Typically it takes the VA 7-10 days to pull a COE so I would wait until Thursday to call.

A lender is also going to pull a copy of your COE so you could start your pre-approval on Monday.

[derboesekoenig]

So in other words, it was a waste of my time to pull it? Ha nice. Well, I was going to wait until my credit updates as my middle score is currently 4 pts below the 620 min. most lenders require. Feb 28 is the day.

The bad news is that the house I wanted, just got a bid put on it (8 days on market). Oh well

[VALoanMaster]

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@derboesekoenig wrote:

So in other words, it was a waste of my time to pull it? Ha nice. Well, I was going to wait until my credit updates as my middle score is currently 4 pts below the 620 min. most lenders require. Feb 28 is the day.

The bad news is that the house I wanted, just got a bid put on it (8 days on market). Oh well

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Well I wouldn't say it was a waste of time since VA was going to have to research it anyway, at least they got started on it early.

Not all of us require a 620 score for VA loans. You can get pre-approved now, while continuing to work on your scores.

[derboesekoenig]

My mortgage scores are EX 601 EQ 616 TU 644

Overall util. is reading 48% ($17k/$36k), 5 CCs, but all are paid to $0 except a 28% bal on one ($5,700). Was planning on paying last one to either 8.9 or 2.9%...but then I've heard conflicting reports. And maybe possible to get a 10+ jump if I actually pay all accounts to $0.

Another dilemma about the residual income and DTI calculations--how is this done if I am working/living overseas for 330 days out of the year, but want this house to be my primary residence? I have zero bills if the last CC is paid off to 0. Currently a student ($14k student debt). Do I have anything to worry about?

Should I go ahead with preapproval now, or wait until the 28th?

I understand it will be a hard pull to start the preapproval process as well, and subsequent soft pulls thereafter. 

I have all my documents via .PDF ready to go as well

[VALoanMaster]

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@derboesekoenig wrote:

My mortgage scores are EX 601 EQ 616 TU 644

Overall util. is reading 48% ($17k/$36k), 5 CCs, but all are paid to $0 except a 28% bal on one ($5,700). Was planning on paying last one to either 8.9 or 2.9%...but then I've heard conflicting reports. And maybe possible to get a 10+ jump if I actually pay all accounts to $0.

Another dilemma about the residual income and DTI calculations--how is this done if I am working/living overseas for 330 days out of the year, but want this house to be my primary residence? I have zero bills if the last CC is paid off to 0. Currently a student ($14k student debt). Do I have anything to worry about?

Should I go ahead with preapproval now, or wait until the 28th?

I understand it will be a hard pull to start the preapproval process as well, and subsequent soft pulls thereafter. 

I have all my documents via .PDF ready to go as well

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The part in red above adds an additional layer.

Here are the actual VA guidelines:

The veteran need not maintain a physical presence at the property on a daily
basis. However, occupancy “as the veteran’s home” implies that the home is
located within reasonable proximity of the veteran’s place of employment. If
the veteran’s employment requires the veteran’s absence from home a
substantial amount of time, the following two conditions must be met:
• the veteran must have a history of continuous residence in the community,
and
• there must be no indication that the veteran has established, intends to
establish, or may be required to establish, a principal residence elsewhere.

When it comes to calculating your DTI & residual income, the underwriter will more than likely count the housing expense you pay overseas as well as the mortgage payment. Given the fact that you don't have any debt, this shouldn't be a big deal but it is something that would be checked during the pre-approval stage.

[derboesekoenig]

So if I don't have a housing expense or any expenses, would it be fairly easy to qualify for the max VA loan amount?

[VALoanMaster]

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@derboesekoenig wrote:

So if I don't have a housing expense or any expenses, would it be fairly easy to qualify for the max VA loan amount?

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yeah it should be

[JVille]

You will need Documentation/Proof you have no expenses for daily living overseas. Both from your employer (Military?) and a complete review of your Federal Tax Returns. A concise letter of Explaination and back up documents is a place to start.

[derboesekoenig]

I could give them my offer letter? If I can somehow find it, from two years ago.

Not military, civilian private contractor. I have my 2016, 2017 tax returns in .pdf format ready to go. Still filing my 2018. What about 2 or 3 months of bank statements? I figured that would prove I have no daily expenses here.