10 Apr Helping military members find the best home financing options
Your military clients have special needs to consider when finding the best finance options for purchasing a new home. Your job as a lending professional is to show them all the options and help them make the best financing decision possible for their circumstances.
Your first encounter with a military member will likely be to gain loan pre-qualification, as most real estate agents won’t even show homes to buyers who have not been pre-qualified for a loan. Veterans and other military buyers may have unique credit challenges. Once you have their mortgage credit report in hand, you are better prepared to give military buyers their best finance options.
After pre-qualifying, the loan pre-approval process can begin. Credit scores will determine which financing avenue is the best option. Other benchmarks, such as the debt-to-income ratio, must also be met to gain the best home financing options.
It is the loan officer’s responsibility to find out detailed information so you can get a full financial picture of military clients. Other considerations can also come into play for members of the military seeking home financing, including:
- A pending divorce
- Tax debt
- A pending separation from the military within the next 12 months
- Recently opened credit accounts
- Private loan debt
For those military buyers on the lower end of the credit spectrum, VA financing is a good option, as their requirements are less stringent. Credit scores have less impact on interest rates for government-backed VA financing. Of course, VA loans are not the only options available, especially for those military members with excellent credit. With your help, military clients will know all of their options in order to make the best mortgage financing decision possible.
Barsh & Cohen is here to help with all your loan closings. Our legal professionals have decades of experience in all things real estate. Contact us for a consultation.