Is your income steady enough to buy a house?
The first thing we look at is whether your income is steady and reliable, because a mortgage is a payment you will be making for years. If you are active-duty, your service income counts and it is some of the most dependable income a lender can see, which is one reason Veterans and military families have such an easy time qualifying for a VA loan. If you have changed jobs recently, that is usually fine as long as you can show a consistent work history, and a permanent change of station does not work against you the way a random job hop might for a civilian buyer. What we want to see is that the money coming in will keep coming in, and for almost all service members and Veterans that is exactly the case.
How is your credit, and how much does it really matter?
Your credit matters, but probably not as much as you have been led to believe. A lot of buyers talk themselves out of even applying because they think they need a 700 or higher, and that simply is not true with a VA loan. Most lenders set their floor at 640, but at PBT Bancorp our minimum credit score is 500 on VA purchases and cash-out refinances, which means we can often help families that a bigger lender already turned away. Of course, the higher your score the better your pricing will typically be, so if you have time to pay down a card or clean up a late payment before you buy, that work is worth doing. If your credit is not where you want it yet, give us a call anyway, because we would rather tell you exactly where you stand than have you guess.
Do you have enough saved up?
This is where the VA benefit changes the math for Veterans and active-duty buyers. A conventional or FHA buyer usually needs thousands of dollars set aside for a down payment, but a VA loan lets eligible buyers with full entitlement finance 100% of the purchase price with no down payment at all, and there is no monthly private mortgage insurance (PMI) either. That removes the two biggest hurdles most first-time buyers run into. You will still want some money in the bank for closing costs and a small cushion for the normal surprises that come with owning a home, but you do not need the giant down payment that keeps so many people renting longer than they need to.
How long do you plan to stay?
One honest question worth asking yourself is how long you plan to be in the home. Buying makes the most sense when you expect to stay put for a few years, because that gives you time to build equity and let the value of owning outweigh the cost of getting in and out of a property. If you know you are about to PCS in six months, renting for that stretch may be the smarter call. If this is a place you can see yourself settling into, or a home you would happily rent out down the road, then the timeline lines up well for buying.
The easiest way to know for sure
You do not have to figure all of this out on your own, and you do not have to be 100% certain before you reach out. We can qualify you in about 15 minutes and tell you honestly whether now is the right time or whether a few months of saving or credit repair would put you in a stronger spot. PBT Bancorp is an FDIC member bank and a wholesale broker with access to over 35 wholesale lenders, so we can shop your loan and close most files in 2 to 3 weeks once you are ready. Give us a call at 800-697-4371 or complete our online pre-qualification form, and let us help you find out if you are ready to buy. Thank you for your service.
Ready-or-not questions buyers ask
How much should I have saved before buying?
Less than you may think with a VA loan, since there is no down payment requirement. A cushion for moving costs, the earnest money deposit, and a few months of reserves is a healthier target than a five-figure down payment fund.
Should I pay off all my debt before buying?
Not necessarily. Lenders care about the monthly payments more than the existence of debt, and waiting years to be debt-free can cost more in rent and rising prices than the debt itself. We run your real numbers and tell you honestly which debts matter.
Is renting ever the smarter move?
Sometimes yes, particularly if you expect orders within a year or your income situation is changing. Buying makes sense when you will hold the home long enough for equity to outrun the costs of getting in and out.
How do I find out if I am ready without committing?
A 15-minute pre-qualification call. We look at your income, debts, and goals, and you leave the call knowing your price range or exactly what to work on, with no obligation either way.
Talk to a VA loan specialist
Real person, no credit pull, no obligation. Takes 30 seconds.
What do you need help with?
Thank you for your interest. We will be in contact as soon as possible.
Prefer not to wait? Call 800-697-4371 or text us at (800) 697-4371.
Want a real answer for your numbers?
Ask Mike to look at your VA loan options.
No credit pull, no obligation. We can usually tell you the next step in a few minutes.