If you have sacrificed a portion of your life to ensure that the rest of us can continue to live freely in ours, then you are entitled to a few perks.
Especially when it comes to securing a home for you and your family in the country you fought so hard for. A VA loan is remarkably easier to apply for and to get approved for than most veterans realize. Take advantage of this program and allow yourself the joy of home ownership.
How Easy Is Applying For a VA Loan?
The idea of a ton of paperwork could be what is holding you back from applying for a VA loan, but once you start the process you will be amazed at how simple it is. It is even easier than applying for a traditional loan. First of all, there is no down payment requirement for a VA loan, nor is there any requirement for PMI insurance. This type of insurance is usually applied to loans where the buyer has put little or no money down on the house first. Not having that insurance will save you thousands of dollars in fees over the life of your loan.
Another benefit to a VA loan is that you are still entitled to competitive mortgage rates. This is not a bait and switch program where you are lured in by incentives only to realize that your rate will be significantly higher than on a traditional mortgage. With a VA loan, you are entitled to shop around for the best deal on an interest rate.
How To Apply For a VA Loan
There are five basic steps to follow if you wish to take advantage of the VA mortgage:
- Obtain a certificate of eligibility. This is easily done by filling out VA Form 26-1880, which should be readily available at your local VA office or even online. This certificate lets your lender know what you are entitled to as a veteran.
- Choose the perfect home for your family and sign a purchase agreement.
- Ask for an appraisal on the home from the VA. The lender will often take care of this for you.
- Apply for your mortgage through the lender. This can be going on simultaneously with the home appraisal to help expedite the process. If the lender is VA approved like Better Rate Mortgage, then the loan can be approved before the VA has a chance to review the loan application so long as the appraisal is complete.
- Close on the home and move your family in.
In addition to the perks mentioned above, a VA loan can be up to 100% of the assessed value of the home. In addition, there is generally a limit on how much of the closing costs the buyer may assume.
A VA loan is simply a guarantee to a lender that the loan is protected by them in the event that the buyer is unable to make payments. It is a win-win mortgage for everyone involved and one that should be used by all of those brave men and women who are entitled to it. Call Better Rate Mortgage at (314) 361-9979 for more information.
Photo credit: Chris Bohn via Flickr