Published on May 31st, 2017 | by Balanced Family
Navigating the Process of Purchasing a Home With a VA Loan
Are you thinking of purchasing your own home in the next year? Do you dream of having a piece of land that you can call your own? Are you a veteran who has served time for the country that you now live in? You might be qualified for a VA loan. A VA loan is a special loan for the veterans of the United States. The program offers easier loan requirements than a conventional loan. If you are a veteran who is considering a VA loan, you will want to take the following steps in your home buying process.
Contact a couple of mortgage providers
Most loan providers offer VA loans. However, not all of them do, and it is important that you find a lender who is familiar and offers this loan program. It can also be helpful to contact a couple providers of the VA loan. Find a mortgage lender that you enjoy working with. You will have to work with them for many months, as you become qualified for the loan and then again, when you apply for the loan. They will also help you through the closing process, once you find a home that you are interested in purchasing.
Submit required documents for the VA loan
Applying for the VA loan is in many ways, similar to applying for any other type of loan. The lender that you chose will request specific documents from you. These documents will be given to the underwriter of the company, who will assess your financial situation. This process has fewer requirements than the conventional loan, so it is possible that you will not need as many documents. If everything checks out, you will become prequalified for veterans home loan. A prequalification tells you that you are likely to be approved, and gives you an ideal amount. You can take this prequalified amount and begin looking at houses for sale.
Work with a professional real estate agent
Once you have your pre approved amount, you can begin working with a local real estate professional. The agent will show you houses that are in your price range. If you find one that you want to purchase, they will begin the negotiations process. If an offer is accepted, the information will be given to your VA loan program lender. From here, the lender will start the required paperwork. You might have to provide additional paperwork to obtain financing. VA loans do not require mortgage insurance and allow for 100% financing, so you will not have to come up with much, in terms of closing costs.
Wait for the paperwork to go through
The closing process can sometimes be a couple of months. For complex buying situations, it can take even longer than that. During this process, you just sit back and wait for your lender. They will work with the seller?s lender and will contact you if they require anything else. The benefits of VA loan closing costs are one of the best things about the VA loan. VA mortgage rates are currently as much as 50 basis points lower than those available for conventional mortgage loans. Your lender will discuss all of the mortgage information with you, prior to closing. Once you come to an agreement, you will sit around the closing table, and sign numerous documents. Once completed, you are now the owner of a new house!
The VA loan program is a huge program that helps veterans achieve homeownership. Veterans just in the state of Texas received a total of 58,774 home loans in 2016. Many veterans are currently taking advantage of the benefits of the VA loan program. You will find it easier to obtain a loan. You also will not have to come up with as much of a down payment. Your interest rates on the mortgage amount will be less than if you were to choose a different type of mortgage. Choosing an experienced VA loan provider will provide you with all of the VA loan information you need, as well as help you through the VA loan process.