Even though VA doesn’t require a down payment, you’ll still need some money to buy a home. Lenders don’t want to see that you have to exhaust every penny you have in order to buy a home. So save up enough money to cover your out of pocket home purchase expenses, and still have a few bucks left over.
If you are currently living rent free you should be saving money every month. Lenders will be skeptical of your ability to repay a monthly mortgage payment if you currently don’t have any housing expenses, yet have been unable to save money.
The best thing to do whether or not you have housing expenses or not, is to do a mortgage payment test. Get an idea of what the approximate mortgage payment would be for the type of home you wish to buy.
Subtract your current housing expenses from that amount and save the difference every month. If you find this difficult to do, you might need to lower your desired purchase price. This is an easy way to save money, and prepare yourself for the upcoming mortgage payment.
If you feel like you’ve already accomplished all or most of these things, you may be looking for information on how to apply for a VA loan. Simple click this link to be taken to the online application. I’ll have you pre-qualified and ready to go shopping in no time at all.
You may be asking yourself how do I know what mortgage payment to use to figure out what my debt to income ratio will be, or to give myself a mortgage payment test. Well be sure to watch my video on “How to Calculate my VA Loan Payment”, where I give you specific instructions on doing just that.