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The more you know about the home buying process, the more confident you will be in making the critical decisions that will shape your homeownership experience. VA residual income is more important than a debt ratio because it shows how much income remains for basic living expenses. Three factors determine the minimum amount of residual income you will need to qualify for your loan:

• Loan Size
• Family Size
• Region of the Country

If you are a veteran, you may qualify for mortgage assistance through the U.S. Department of Veterans Affairs. The federal government insures and backs home loans issued by independent lenders to promote homeownership among veterans.

Pros:

• Backed by the government
• No down payment is required
• No private mortgage insurance required
• Lenders view as low-risk
• More lenient qualification standards

Cons:

• Possible loan limits depending on where you live
• Must be a veteran to qualify

Overwhelmed by your mortgage options? You don't have to be. Develop a "3-D" picture of yourself. It will help you determine where you stand in the loan landscape.

• Delve Into Your Past
• Know your credit and employment history.
• Determine Your Present
• How much can you spend? What kind of place would you like to call home?
• Define Your Future

Based on what you know about your past employment history, try to project your income level: 1-3 years, 5-10 years, 15-30 years in the future. You should also consider future family growth because the loan you choose today can affect your life tomorrow.

Please take a few moments to pause and reflect on these questions, then let Metro’s Mortgage Team help find the answers you need or learn about our various loan options on your own. Visit Metro’s Save and Succeed and take a free video course about buying a home and understanding mortgages.