Are you in the military or veteran and looking to purchase a home?
You may be able to get a VA loan. There is a lot of confusion around these types of loans. You should know if you qualify, how they work, and how you can get one.
Ready to learn more about VA loans?
Read on to learn more about the entire VA home loan process.
What is a VA Loan?
VA loans are mortgages that are backed by the U.S. Department of Veteran Affairs. In the event that you default on your loan, the government steps in and pays for part of the bill.
That lowers the risk for the banks, making it much easier for you to get approved. VA loans often don’t require that you have a down-payment, either.
VA loans are easy to obtain, but not everyone qualifies for such a loan. You have to have served at least 6 months in active duty. Veterans and spouses of veterans killed in the line of duty can get VA loans, too.
The VA Home Loan Process
This seems like a great option for you can you qualify. What’s the VA loan process? You have to start by finding an approved VA home loan lender.
This isn’t just any mortgage company, they have to be approved to work with VA loans. If you’re looking in Oregon, you may look for VA loans OR RōBUS Mortgage. Make sure that the lender is licensed in your state and is approved by the VA.
Once you find an approved lender, you’ll need to get a Certificate of Eligibility. The COE will detail your eligibility to get a VA loan and how much the U.S. Department of Veteran Affairs will guarantee on your loan.
Get Preapproved for a Loan
Upon receiving the COE, you can get prequalified for a home loan. This step is important in a hot real estate market. You may be competing with a lot of other offers. Going in with a preapproval letter is almost as good as walking in with cash.
You want to make sure that before you request preapproval, you have an honest conversation with your lender about your financial situation. Check your credit score and see if you can make improvements to your financial picture before you get preapproved.
Once you are preapproved, don’t make sudden changes that will impact your credit score. Things, like getting out more credit cards or maxing out the ones you have, could cause the deal to fail.
Go House Shopping
Next, you’re going to find the home that you want and put down an offer. The lender will start processing the VA loan.
An appraisal of the home by a VA-approved inspector is necessary in order to close on the loan. Once you have the inspection and there are no issues, you can close on the home.
The VA Home Loan Process
VA home loans are a great way to leverage your military experience into a home purchase.
The VA home loan process is a little different than a conventional home loan. You need to work with a lender that’s approved by the VA and get a COE from them.
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