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Question for mortgage gurus about VA options.


Deliahsdad2
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DW and I are going to look at getting a home loan (VA--recently got out of the military) I sent my paper work in (around a month or so ago) I have been at my "new" current job for 4 months--making in the mid 30's, with a fico of 670--with a sticky collection on my account--less than 1,000, wife makes around 20 (going to school)--615? fako right now, 1 med collection (less than $500, working on it). What should our game plan be when we get the paperwork back from the VA? What are our chances? What paperwork should we get in order? what types of things should we be able to present before we are asked for them?--i.e. W-2s, 1099's? Bank statements, rental contracts, etc. Want to get everything ready first before we look for a broker. BTW no late pays on any accounts in over 2 years almost 3 (except for the collections that is--but have been attempting to validate the collections with no response--but that is for another board) We have been renting for a few years now and its time to get out of the apartment Any help would be greatly appreciated.

DD

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Your first priority should be getting the collections paid off. I am not sure what you mean by "sticky collection", but if you have paid this and have a receipt or other paperwork showig it paid, you will be fine. these two collections will need to show as paid, or arrangements between you and the CA to pay them off.

In terms of employment, you said that you have been at your current job for four months. If you were discharged four months ago, you will be fine. If you have been discharged longer, and have been steadily employed, and bettering your finances, you will be fine on the employment qualifications as well. Be prepared to show your job history.

The paperwork you will need to have ready when you apply will include your discharge papers, VA Certificate of Eligibility, the past two years of W2 statements (tax returns if self employed), Complete job history for the past two years, bank statements showing availability of cash or assets to close the loan, all account numbers of any outstanding debt obligations, balances, and monthly payments (usually a recent statement will have all this information), and copies of rent checks or a rental verification letter from your landlord showing twelve months rental history.

Based on $50,000 income, your total monthly payments should not exceed $1700/mo. This total includes any other installment debt you may have. It would be best if you limited your house payment to $1200 or less (including taxes and insurance).

Regarding down payment, it is possible to get a VA loan with zero down payment, however the seller will need to pay all closing costs on your loan. You will want to use this as a negotiating tool when putting in offers on the purchase. If the seller is not aware beforehand, you cannot expect the seller to pick up these expenses.

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