Buying a home can be an overwhelming process for everyone. If you are a veteran, understanding the benefits and application process involved with a VA loan can be incredibly daunting. Thankfully, this guide can help. Before you contact an agent, contact a lender, or start looking at potential homes to purchase, here are a few things veterans need to know about buying a home.
VA Loans Are Incredibly Beneficial
As a veteran, you sacrificed a great deal for this country. Therefore, you should be awarded with many benefits. Even though it is just not enough, a VA loan is one way the government will show its appreciation to you.
VA loans allow servicemembers, veterans, and surviving spouses that are eligible to purchase a home in a more affordable manner. Not only are lower interest rates one benefit, but VA loans also allow the eligible to purchase a home without a down payment. If you are a veteran hoping to start the process of buying a home, understanding these benefits is smart so you know what to expect.
Other Expenses May Apply
The ability to buy a home with a lower interest rate and no down payment are incredible benefits, but it is important to know that other expenses may still apply. Understanding this fact before you start your application process is smart, since you will know how to budget accordingly.
Lenders will usually waive the application fee for veterans, but you should ask your specific lender beforehand. In most cases, this fee is small and nothing terribly distressing.
Once approved, you may be required to pay earnest money when you make an offer on a home. The amount of money shows the seller you are serious about making the purchase.
In addition to earnest money, closing costs may also be required. Closing costs may include fees for your attorney and appraisal. Lastly, you should budget for the cost of a home inspection.
Don't Forget the COE
Before you contact your lender, remember the COE, or certificate of eligibility. This certificate shows the lender you are eligible for a VA loan. Applying for a COE will require some time, so it is smart to begin the process beforehand.
Current servicemembers, veterans, and eligible spouses can apply for the COE online. Or, you can contact your preferred lender to see if they can help you start the application process.
A VA loan is one benefit that can help servicemembers and veterans own a home. This guide will help you understand and start the process of applying for a VA loan.
For more information, reach out to a company like Rankin Mortgages.
Share10 July 2018
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