If you served in the military and earned the privilege of a Veteran's Administrate (VA) mortgage, you will want to take full advantage of that privilege. There are a few things you need to know and understand about a VA loan.
Get Your VA Certificate of Eligibility
To qualify for a VA loan, you will need to produce a VA Certificate of Eligibility (COE). This certificate proves that you are a veteran who has earned this privilege. The best way to secure this certificate is by using the VA's online eBenefits portal, although you can also visit a VA office directly if there is one in your area.
Start the Prequalification and Preapproval Process without the CEO
You don't need to wait to get your COE to start the prequalification and preapproval process for a VA loan. You can contact a VA loan lender and start either of these processes while waiting for your COE. You will need the COE for the mortgage; however, you can get your preapproval letter and start shopping for homes while you wait for the COE to process.
Remember that This Is a Multi-Use Benefit
It is essential to understand that just because you used your VA home loan benefit before doesn't mean you can't use it again. This isn't a program for first-time homebuyers, nor is it a one-time program. Once you earn this benefit, you can use it again and again. So, if you bought a home using a VA loan two decades ago, you can still get a VA loan again right now, as long as you meet the credit eligibility requirements.
Shop Around for the Best Rates
The exact loan terms and rates you can get with a VA loan will vary from one lender to the next. That is why you will want to contact multiple mortgage lenders all within the same month or so and see what type of terms and rates they will offer you. If you put in all the inquires within a short period of time, the credit reporting bureaus will only count that as one hit on your credit report instead of multiple hits to your credit report.
Find a Real Estate Agent who Understands VA Loans
You will want to find a real estate agent who understands how VA loans work. With a VA loan, you can't really purchase a fixer-upper home. You have to purchase a move-in-ready home, and all defects in the house have to be fixed by the current owners before the loan can close. You want to work with a real estate agent who understands this and who can find homes that will easily pass the VA loan appraisal process.
Have a Little Upfront Money
With a VA loan, you often don't have to put down a down payment. With the right negotiation skills, you may be able to get the seller to cover the closing costs as well. However, that doesn't mean that you can purchase a home without spending any money at all. You will want to put an earnest money deposit down, and you will have to pay for the appraisal and the home inspection. You can get back this money during the closing, but you will need to pay it upfront.
Also, just because you don't have to place a down payment doesn't mean you can't. If you want to place a down payment to build equity in your home and enjoy lower payments, you can do so, even if you are not required to do so.
For more information on VA loans, contact a mortgage company like Dominion Capital Mortgage.
Share22 June 2021
When I began my first business selling sports equipment locally, I knew the sports-world well, and I knew how to run a business. One thing I did not know a lot about was the financial world. I had never applied for a loan in my life other than when I financed my car with the dealership in-house financing. My first application at a large bank was denied. I began looking into my other options, and I found that there were more lenders for new businesses than I realized. I applied at local credit unions, local banks, and other business lending services. I was able to secure more funding than I even expected, and my credit is just average. I created this blog to help other new business owners realize that there is funding out there. You just have to find it and apply! Don't give up on your dream.