The VA home loan is one of the best benefits you can take advantage of as a veteran. It doesn’t require any down payment and offers excellent interest rates. You also don’t need to pay private mortgage insurance (PMI) on your mortgage.
In this guide, you’ll understand the steps to buying a home with a VA loan to take advantage of its benefits. But first, we’ll give you a brief explanation of a VA loan.
What Is A VA Home Loan?
A VA home loan is a mortgage guaranteed by the Department of Veterans Affairs (VA). They manage all VA benefits and services for veterans, service member, or their family members.
However, before getting a loan, you must know your county’s limits for it. You can check that through Security America Mortgage, which will let you know if you qualify for it and the amount you can get as a vet based on your details.
How Do You Qualify For VA Home Loans?
There are three main requirements for a VA home loan. First, you must be a veteran, active duty, or reservist. If you’ve served in the military, you’re eligible to apply for a VA loan so long as you served 90 days during wartime and 181 days during peacetime.
The second is that you must be able to prove that you have an eligible service-connected disability. It can include injuries sustained during combat and disabilities from non-combat situations. Also, surviving spouses can qualify for VA loans if their military partners pass.
The third qualification is a good credit score. Having good credit is a gateway to gaining any secured loan in the US. Without it, lenders won’t generally trust your ability to pay back, which extends to VA loans. Although a low credit score won’t kill your chances 100%, having a good score will boost your chances.
Aside from having a good credit score, you should also have enough income to afford the monthly payments on your new home purchase.
Steps To Finding A Home With A VA Loan
Finding a VA-loan-backed home may be a laborious undertaking. Fortunately, you can find some homes on securityamericamortgage.com to help with your search. But before you commence the search, take note of these steps:
1. Write Down The Features You Want In A Home
To make your search for a VA-loan-backed home faster, make a list of essential features. It could be a large yard for the kids to play in, an open floor plan for entertaining friends and family, a home close to work, etc. After getting this done, you can move to the next step:
2. Find Homes That Meet Your Criteria And Budget
You will need to find the homes that have the qualities you seek and are within your budget. You can use the website suggested above for this. Ensure that the homes you shortlist fall within the range of what your loan will allow. If they don’t fit into that range, adjust until they do. It’d be best to consider whether the area you found the property in would allow you to live an affordable life.
3. Make An Offer On A Home
After finding a home that ticks all your boxes, make an offer having your closing costs in mind. Although you’re using a VA loan, there are still fees associated with buying property. These may include title insurance that protects against any legal issues regarding ownership, escrow accounts that hold payments until closing day, and attorney’s fees for legal processes. Don’t forget about these costs when making offers.
Steps To Buying A Home With A VA Loan
To eventually buy a home with the loan, start by getting pre-approved for the loan. You’ll need to tender this down the road and eventually pay it when the seller or property agent agrees to your offer.
You should also figure out how much you’ll need for closing costs. It can vary depending on the home’s location and what kind of loan you get (VA loans usually carry lower fees than conventional mortgages).
Think about moving expenses too. Will you need to buy new furniture, rent a truck, or hire movers? Consider all of these costs before making an offer on a property. You’ll be prepared and won’t be surprised by the cost of these things when the time comes.
Conclusion
You can take advantage of a VA loan if you’re a veteran, active service member, military spouse, and surviving spouse. With this loan, you can buy a home without paying private mortgage insurance and down payment. So far, if you or your spouse wasn’t dishonorably discharged, you can still get the loan. Just follow the steps above to get qualified.