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For any homeowner, applying for a mortgage seems like a daunting task. But when you are a veteran, the process is helped and supported by the Government of the United States for purchasing a home, with the help of a VA Loan.
Since these loans are guaranteed by the VA Department of the U.S. Government, it requires a little effort to secure a mortgage. Thankfully, you can follow this rundown of 5 steps to get a VA Loan, almost as easily as any other loan.
Not all lenders are the same when it comes to VA Loan. The first mandatory step is to ensure that the lender you approach is approved by the Department of Veterans Affairs. And to ensure that you benefit the best out of your VA Loan, make sure that you find yourself a lender who specializes in VA Loans, specifically. This may affect the overall ease of the loan process if you find yourself a VA specialty lender who has extensive knowledge about the VA Loan process.
VA Loans are not the same as other mortgage loans. Since it is backed by the U.S. Government, you need to produce a Certificate of Eligibility (COE). The COE can help you understand the exact amount of loan that you are entitled to. Your VA Loan lender can assist you to obtain the Certificate of Eligibility.
Pre-qualifying for a loan is very important, but it is not at all a mandatory step. If you go for a pre-approval for your loan amount, you can save a lot of time, later in the process. Providing your lender with all the necessary details such as your employment history, your marital status, your income, and your credit history can help you pre-qualify for your loan. When you apply for a pre-approval of your loan, you may require to pay a little extra for the initiation of the loan process. Bruce Glassinger from VA Loan Lending says that an origination fee should only cover the expenses of processing a loan, but many brokers will try to charge more. So, it is also important to know how much should you be paying.
To begin your loan process, you’d need to produce an estimate of the property you intend to purchase. And in order to produce a proper legal document that states the value of your home, you’d need to start with your house-hunt. Begin with sorting the areas where you wish to buy the property. Then narrow down your search all the way to ensure that you find the best home within your budget. Make sure you consider the location, amenities, accessibility, and the security of your loved ones when you start with your home-hunt. Additionally, a realtor can prove to be of great help in sorting the right house to buy. Since these professionals are sophisticated with all the local knowledge of the region and the best offers on properties, you actually stand a better chance at finding your dream home.
To finish your loan application process, you’d need to sign a purchase contract. Once the lender has the contract, they can begin with releasing the funds into your account. But before they transfer the funds, one last step is still left to be completed. They’d need to order a VA appraisal in order to ensure that the home you are about to buy is considered for VA financing. A professional VA appraiser is considered for conducting the appraisal procedure and certified as per the VA standards. Once your home is validated as eligible for VA Loan your lender qualifies and releases your loan amount into your account.
Once the loan is processed, all that’s left is to close the agreement and move in. During the closing, you are legally named as the owner of the property. Pay the seller, sign the agreement, transfer the property papers to your name and you are done. But make sure you provide proof of homeowners’ insurance before you pay closing costs. Although, purchasing a homeowners’ insurance is not at all needed since you’ve borrowed a VA Loan, which guarantees a portion of the loan amount to be paid by the Government.
These steps are usually common for every applicant. Although there may be a few additional steps depending upon the individual cases, the overall run-down remains the same, more or less.
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