Best Credit Union

HOME LOANS

HOME LOANS

HOME LOANS

My Mortg

ages

My Mortg

ages

My Mortgages

HOME

TOWN

BANK

LOANS

HOME

TOWN

BANK

LOANS

Mortgage

s

Mortgage

s

Mortgage

s

Mortgage

s

Best Credit Union

HOME LOANS

HOME LOANS

HOME LOANS

My Mortg

ages

My Mortg

ages

My Mortgages

HOME

TOWN

BANK

LOANS

HOME

TOWN

BANK

LOANS

Mortgage

s

Mortgage

s

Mortgage

s

Mortgage

s

Best Credit Union

HOME LOANS

HOME LOANS

HOME LOANS

My Mortg

ages

My Mortg

ages

My Mortgages

HOME

TOWN

BANK

LOANS

HOME

TOWN

BANK

LOANS

Mortgage

s

Mortgage

s

Mortgage

s

Mortgage

s

Best Credit Union

HOME LOANS

HOME LOANS

HOME LOANS

My Mortg

ages

My Mortg

ages

My Mortgages

HOME

TOWN

BANK

LOANS

HOME

TOWN

BANK

LOANS

Mortgage

s

Mortgage

s

Mortgage

s

Mortgage

s

When you’ve decided to take advantage of the  

VA mortgage loan guaranty, the hard work begins. 

This includes finding:

  A home that meets your family’s  

requirements and also the VA rule that  

the purchase price isn’t higher than the  

home’s appraised value 

  A lender that offers you a competitive annual 

percentage rate (APR) that combines the 

interest rate, fees, and settlement costs

QUALIFYING TO BORROW

Potential lenders consider your credit report  

and score, your income and debt-to-income (DTI) 

ratio, and the collateral—in this case the home 

you’re buying—in evaluating your loan applica-

tion. DTI is a measure of your outstanding debt, 

including what you’ll be paying for your home,  

in relation to your income. As a general rule, it is 

harder to qualify with a DTI above 40%, and 36% 

is the preferable limit. It’s also wise to request a 

loan that is no more than four times the amount 

the VA will guaranty in the area where you are 

planning to buy.

You can find ballpark numbers without having  

to provide any personal information at a number 

of commercial sites.

Next, contact several lenders, starting with 

your primary financial institution, such as the 

credit union or bank where you have checking 

and savings accounts. You may be eligible for a 

somewhat lower rate as an existing member or 

customer, provided you qualify to borrow. You’ll 

want to ask about interest rates and settlement 

costs separately, and take good notes, so you can 

make a more accurate comparison of possible 

offers. This may also allow you to negotiate a  

deal more effectively.

Within three business days of a mortgage loan 

application, the lender must provide a good faith 

Loan Estimate of the total cost of borrowing. The 

form was redesigned by the Consumer Financial 

Protection Bureau (www.cfpb.gov) to make it 

easier to understand what you’ll owe and how 

competing offers compare. You’ll get a similarly 

designed Closing Disclosure just before the sale  

is finalized.

What it costs you to borrow depends on  

three things: the amount of your loan, the  

annual percentage rate (APR), and the loan  

term, which is often 15 or 30 years. The less you 

Shopping for a Loan

There’s a reason that buying a home seems complicated. It is.

Your outstanding debt

 = 

DtI ratio

 Your gross income

SHOPPING FOR A LOAN

A smart way to start your search for a mortgage 

loan is by checking online to get a sense of the 

current lending environment, including the  

average interest rate that lenders are charging. 

 

amount of your loan

aPr

Loan term

  

total cost of a mortgage loan

veterans HanDBOOK