It can be an overwhelming decision to move you and your family to a new home. It can become even harder as a veteran if you are unable to work certain jobs and afford certain fees. That’s why you should use a VA backed loan, which offers cheaper rates and fairer deals.
Explaining What A VA Loan Is
A VA loan is a loan backed by the Department of Veteran Affairs. They will not offer the loan themselves, instead, it will be done with private lenders. It is a unique $0 down payment mortgage option for veterans. The program will come with a few other benefits, such as more competitive interest rates and fairer credit score evaluations and acceptances. They are issued to veterans as a thanks for their service, and those who have worked within any major area of the military will be able to qualify.
How They Work
VA loans don’t work too differently compared to the normal process of a conventional loan. They will require some different steps, such as seeking the completion of a certificate of eligibility. This will be the proof that private lenders need to get started. They can often times be obtained from online portals from government websites, or your VA loan specialist can fill it out on your behalf, with you providing the information for them to fill.
That’s why you need to work with a lender who understands the ins and outs of the veteran loan market. VA loan specialists such as Hero Loan will be able to work with you to prove your status and achieve your VA loan certificate of eligibility for active duty. From there, you can get prequalified and get an estimate on your costs, before moving on to the next stage.
The next step will be to get preapproved, which is one of the major steps to purchase your new home using this loan. You will need to find the home, either using a traditional realtor or a veteran specific one, to then move onto the information collecting stage. This will include verifying your income and financial information in general to know what you can and can’t afford.
You will then need to put in an offer, much like you would with a traditional loan, and start negotiating with the seller. Then it will be a case of going through a VA appraisal of the property to ensure it is suitable for the Department of Veteran Affairs needs, before moving on to the closing of the property. This will include signing legal documents and paperwork and includes getting the actual keys to the new home.
Facts You May Not Be Aware Of
VA loans are not one off, meaning that you can use your full VA entitlement as long as you wish as long as you pay off the loans. VA homes need to be ready to move in, as the loan will only cover a specific type of property. The loan must also be used for a primary home, so you will not be able to purchase a second home.