If you are an active or retired member of the United States military you may be eligible to qualify for a VA home loan, which offers great benefits that can make purchasing a home easier than you might think. However, there are many things to consider when applying for one, so it’s important to take the time to learn about what they are and how they can help you avoid problems in the future. These five things every veteran needs to know about VA Home Loans will get you started on your way toward qualifying and enjoying your new home sooner than possibly expected.
* Active Military: Current Proof of Service Statement
* Retired Military: DD214
* National Guard/Reserves: Military Retirement Point Statement & DD214
Having the above documentation will allow your mortgage lender to contact the VA and request your VA Certificate of Eligibility. This document will tell them whether you are eligible for a VA home loan. If you are unsure on how to obtain these documents, we can help with that too!
Fees & Closing Costs:
Even though VA loans do not require a down payment, they do come with fees and closing costs that can add up quickly. For example, VA mortgages require a funding fee of up to 3.6% of your purchase price but rest assured that is generally added to your loan, so there is no upfront/out-of-pocket cost on that. If you have a VA disability rating of 10% or more, it is likely the required VA funding fee would be waived. Other fees that may be included are the cost of an appraisal, title fees, underwriting/processing fees, and any other transaction-specific fees. So, while the VA home loan is more cost-effective at the closing table due to the no down payment requirement, you will still have some costs associated with buying the home unless the seller of the property is willing to pay those for you.
• Credit history
• Credit score
• Employment history
• VA home loan eligibility
• Assets
• Current debts vs current income
Basically, the pre-approval process is a health check on your finances ensuring you are ready to start looking at homes. It also gives us a chance to discuss anything that might potentially be standing in your way of homeownership, so you can get a game plan established.