VA Mortgage: when to apply?

[Ludsey]

Last week I called navy fed and they pre-qualified husband and I.

 

Here is the thing. We got a price point so we could start looking around, but was told by realtor we'd need an approval to make offers. We're in San Diego, and the markets gone up about 22% in one year, many offers before buyer has an accepted one.

 

With that said, hubby paid a tradeline (showed as installment) from ~3700 to about ~700, and a 2700 cc balance to about 200, but they won't report until July. Since I've read that numerous inquiries within 15 days count as 1, I was thinking about applying and getting reports now at least to get pre approval and if need be on the 1st to show new balances.

 

Any thoughts? This is our first home purchase so any advice helps!

 

Thanks in advance.

 

 

Sent from my iPhone using Tapatalk 2

[Brian B The Loan Professor]

Last week I called navy fed and they pre-qualified husband and I. Here is the thing. We got a price point so we could start looking around, but was told by realtor we'd need an approval to make offers. We're in San Diego, and the markets gone up about 22% in one year, many offers before buyer has an accepted one. With that said, hubby paid a tradeline (showed as installment) from ~3700 to about ~700, and a 2700 cc balance to about 200, but they won't report until July. Since I've read that numerous inquiries within 15 days count as 1, I was thinking about applying and getting reports now at least to get pre approval and if need be on the 1st to show new balances. Any thoughts? This is our first home purchase so any advice helps! Thanks in advance. Sent from my iPhone using Tapatalk 2

This is tough but not impossible - most banks are so busy they wont approve you until you are in contract - they just cant spare the resource, in this case an underwriter. Thats not to say someone wont do it for you. The CA market has never been a buyers market like many place - even when things were at their lowest, investors and FTHB's have been fighting over some good deals. The issue you may run into is the investors have cash so you're going to need to show you are a solid buyer- an approval is one way to do this. Other ways are large down payments (using VA this isnt likely the case since most use it to take advantage of the no down opportunity. Maybe a higher offer than others? Even then you may lose to the cash in hand buyer. Just be prepared to fight through it.

I am a little confused you said you were preapproved and then ask about having another pull?

Do you need higher scores or Debt to Income? If not, I wouldn't worry about the update other than to document the lower payment.

B

[Ludsey]

Thank you for your reply

 

We have a pre qualification, which I know means nothing. The pre-approval is the hp, but some listings require an actual approval in hand (others just a pre-approval).

 

DTI is good, we'd be under the 41% with mortgage payment of about 1900-2000. I'm mainly concerned about hubby's score, was hoping the decrease in his balances would boost (his utilization was somewhat low already, get a couple of shared accounts with maybe 5% ) even by a couple of points.

 

We're ready to go 15-20 over asking price to makeup for VA inspections and help with closing costs.

 

 

Sent from my iPhone using Tapatalk 2

[VA loan source]

There are some lenders that will issue a credit approval on property that is TBD (to be determined). In your market area, and several others, that can be very important to get into the game.

Good luck and Thanks for serving.

Steve