If you are a veteran or currently serving member of the United States military, are you aware that you could stand to receive an enormous helping hand when it comes to getting a foot on the property ladder?
In these current times especially, more people than ever are finding themselves in financial difficulty when it comes to making big life changes such as buying a home, but thanks to the VA loan system, this is a dream that can very quickly become a reality for thousands of veterans and active servicemen every single year.
What Is A VA Loan?
A VA loan is essentially a mortgage that is guaranteed by the US Department of Veterans Affairs, and it is issued by a private lender like a credit union, bank, or mortgage company. Qualifying for a VA loan can make the process of buying a home much easier as it does not require a downpayment like traditional property sales. This loan program was created in 1944 as part of the GI Bill of Rights, to give soldiers returning from World War II the best possible chance of reentering civilian life in good circumstances.
VA loans are still helping veterans to secure new homes for themselves, so if you suspect that you might be eligible for such assistance, here are some of the basic steps you need in order to start planning your dream home purchase.
How To Apply For A VA Loan
- Make Sure You Are Eligible
The first thing that you need to do is make sure that you are actually eligible to receive the help of a VA loan. It is easy to find the eligibility criteria online and it certainly isn’t onerous to qualify. Websites that provide information and applications often have VA home loan calculators. Not only will you discover whether or not you meet the criteria, you will also get a good idea of what help you could receive based on your personal circumstances.
- Obtain A Certificate Of Eligibility
A VA certificate of eligibility is what you need to show to a mortgage lender to prove that your service in the military meets the standard requirements for the VA loan program. This certificate can be requested from the VA either online or by physical mail, or alternatively, a VA-approved lender can do the work to obtain the certificate for you instead. It is essential that this requirement is carried out first, as you will not be able to close any VA loan without a certificate of eligibility.
- Select The Right Lender
There are some VA-approved lenders who specialize in clients who have weaker credit scores, while other lenders will offer a much larger variety of VA loan types. The best thing to do is to get pre-approved by a number of VA mortgage lenders so that you are able to compare their qualification requirements, terms, and mortgage rates when the time comes to make a final decision. Ideally, you want to be left with a choice rather than being forced to settle with just one lender.
- Find Your Dream Home
Once the certificates are in place and the lender has been selected, the only thing left to do is find your dream property! The thing to remember at this stage is that you will need to find a property that meets the standards of safety, cleanliness, and overall structural integrity that are upheld by the VA program. Once you find a property that you are interested in, your chosen lender will review the financial situation and organize an appraisal of the house. If everything goes to plan, your application and appraisal will be approved, and you can finally take the finishing steps to close the loan deal and move into your new home.