As promised, here are the answers—plus a few links for additional research-- to the quiz posted earlier to help new house hunters understand what kind of preparation they need in order to get started properly with a VA mortgage.
1. I’ve been preparing to apply for a VA home loan for:
A. One year
Why a full year? Actually, smart VA borrowers begin preparing even further out than that if they know they have credit issues to fix. It’s also a good idea to get credit counseling, and here is a handy list of government-approved credit counseling agencies listed by state.
2. True or False: A house hunter serious about a VA home loan should apply for VA loan eligibility first, THEN start house hunting.
The answer to this question is TRUE. You can’t be approved for a VA loan until you have sent a completed VA Form 26-1880, Request For A Certificate of Eligibility to the VA and have gotten notified of your eligibility.
3. Getting pre-approved for a VA home loan comes at which stage in the process:
A. After applying for and receiving notice of VA loan eligibility from the Department of Veterans Affairs.
This was a bit of a trick question, since knowing the answer to question #2 gives you the answer to this one. Pre-approval is a great way to save time during the house hunt since the buyer knows exactly how much house they can afford, but eligibility comes first.
4. True or False? The buyer can ask the banker to send forms to the VA requesting eligibility for a VA home loan.
The correct answer is TRUE—the loan officer can help a veteran or active duty VA loan applicant with submitting the eligibility paperwork, but vets can also go through their local VA office to get help with the forms if they prefer.
5. The buyer should expect to:
A. Pay no money down for the VA home loan
B. Pay some money down on a VA mortgage depending on the nature of the loan and other factors
C. Pay a down payment the same as any conventional loan
D. A and/or B
The correct answer is D—depending on the circumstances and type of VA loan you apply for you may not have a downpayment, but no two loans are alike.
6. When the lender examines an applicant’s credit report,
B. The buyer’s credit score doesn’t count as much as a record of consistent, dependable payments on all bills
B is the correct answer. A consistent record of on-time payments is the key for getting approved for a VA home loan. It’s not the only factor, to be sure, but it is one of the most important.
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