spot_img
6.2 C
London
Homebusiness7 Steps to Getting a VA Mortgage

7 Steps to Getting a VA Mortgage

Veterans Affairs (VA) mortgage loans have increased exponentially in recent years due to the downturn in the U.S. economy. This economic slump has resulted in banks tightening lending standards for conventional loans. The increase in VA loans is largely due to the fact that they are easier to qualify for than conventional mortgages and are one of the few mortgage options available for qualified borrowers who do not have a down payment.

VA loans often offer lower interest rates than other type of and are available for the “full reasonable value” of a given property. Consequently, a down payment is not require as with other government programs such as FHA, which requires a 3.5 % minimum down payment. So what is a VA loan? VA loans are home mortgages guarantee by the U.S. Department of Veterans Affairs however they are not a direct lender. The loan is made through a private lender (of your choice) and is guarantee by the VA as long as guidelines are met. What are the guidelines and who actually qualifies for a VA loan? To follow are the seven basic steps you will need to take to successfully obtain a VA home mortgage loan.

Step One: Determining Eligibility

Most members of the military – veterans, reservists, and members of the National Guard are eligible to apply for a VA loan. The spouses of military who died in active duty or as a result of service-connected disability may also apply. Active duty members qualify after about six months of service. Reservists and National Guard members must wait six years to apply unless they are call to active duty, where they gain eligibility after 181 days of service. However, during war periods members are generally eligible after 90 days of service. In consideration of your status of service, 대출  applications can differ. Your VA regional office personnel can assist you with any additional eligibility questions.

After pre-determining your eligibility, the first step for potential borrowers is to obtain a Certificate of Eligibility (26-1880) before applying for a loan. At this juncture, you will need to select an accredited VA loan specialist who will assist you in moving forward in the loan process which includes accessing and submitting this eligibility form online.

Step Two: The Pre-Approval Proces

Before embarking on step two of the VA loan process, it is crucial that you have pulled your credit report in advance with all three credit reporting agencies to see where you stand with your FICO credit score. You should thoroughly examine the report for any errors and/or identity theft, taking care of any such issues beforehand. Although Veteran’s Affairs does not require a minimum score for a VA loan, most lenders have internal requirements, asking for a credit score of 620 or higher.

After you have completed this important task, you will provide this information to your VA loan specialist. They can answer any questions that you have. And help you with determining the loan amount you are eligible for through a pre-approval process. The pre-approval process is require by most realtors before working with you to find a home. It serves to give you piece of mind. And a price range that you can afford based on a pre-approved amount.

To obtain a VA loan, the law requires that:

• The applicant must be an eligible veteran who has available entitlement.

• The loan must be for an eligible purpose.

• The veteran must occupy or intend to occupy the property. As a home within a reasonable period of time after closing the loan.

• The veteran must be a satisfactory credit risk.

• The income of the veteran and spouse, if any, must be show to be stable and sufficient to meet the mortgage payments. Cover the costs of owning a home. Take care of other obligations and expenses. And have enough left over for family support.

Your experienced VA loan specialist will be able to further discuss specific income and other qualifying requirements. According to the VA Loan Quick Guid. the VA loan limits generally do not exceed $417,000. (exception in maximum limits with VA Jumbo loans in designated High Cost counties – calculations can vary).

Step Three: Decide on a Home & Make an Offer

Select a realtor to work diligently with you to find your desired home. After finding the home based on your personal and financial criteria, you will make your offer. The offer should not be too low or too high. As you want to stay ahead of the pack in bidding but not risk overpaying for the property. After making the offer, you will be require to place a deposit down ($500.00 is customary) on the property. In placing your offer, be aware that there are certain fees such as brokerage and lender fees. Commissions or buyer-brokerage fees that the seller may have to absorb. As they are disallow by the VA to be charge to the veteran buyer. This amount may need to be factor into the offer/purchase price to be acceptable to the seller.

spot_img

latest articles

explore more

LEAVE A REPLY

Please enter your comment!
Please enter your name here