How does my credit score impact my VA loan and Rate?
Your Credit score is important now because it is an investor overlay that was put into place, it was never required by VA to have a score, but most banks and lenders require scores or standards to equate to a better overall rate. So having a better score is really important.
One simple principle to live by is to have your overall debt below 50% of what your capable of using that debt for. For example, if you have a credit card for example with a $1,000 credit limit try not to exceed $500 dollars. Try to keep it paid down to that amount or less. This will play a big factor in your overall credit score. Having collections will definitely impact your score as well, so it is very important to get those taken care of.
Also, definitely, definitely, not closing any debts, keeping them open, having a depth of credit is very important. Each individual is a case by case situation, but these things can affect your score. So please contact us directly and we can go over advice on what to do next.
We’re happy to provide help to Veterans and military families as they search for homes. Feel free to give us a call today and we’d be happy to help answer your questions and get you on your way.