Taking a loan is a big step. Buyers have to gauge various factors before choosing the mortgage plan that satisfies their needs. This is where a mortgage loan calculator comes in handy — with the help of the right calculator, you can make some quick decisions to assess financial requirements. This blog will cover how to properly use a loan calculator.
Step-by-Step Guide to the VA Home Loan Process
What is a VA mortgage loan?
A VA loan is approved by the Department of Veterans Affairs. These loans are specifically designed for individuals who have ever been a part of the US military. This also extends to surviving families of veterans. The primary purpose is to offer benefits to veterans that make it easier for them to buy a home.
Veterans can enjoy various benefits such as no down payment, no mortgage insurance, flexible interest rates, prepayment of mortgage loan without penalty, concession on closing costs, and no required private insurance policy.
Who is eligible for a VA mortgage loan?
- Service personnel should be able to provide proof of any of the following:
- Active-duty military members, with a minimum service period of 90 days.
- Veterans, who have not been dishonorably discharged.
- National Guard/Reserves members.
- Spouses of veterans, subject to certain conditions on remarriage.
How can I find a VA home loan lender?
You can access the complete list of approved VA home loan lenders on the VA website, found here: http://benefits.va.gov/homeloans/
If you’re shopping for a loan for buying your dream house, there are many viable options that you can consider. A VA Home loan is a special loan program designed for the benefit of veterans who have served in the military and their surviving families. The primary motive is to extend assistance to those veterans who are looking forward toward buying a house.
Following is the procedure to qualify for a VA Home Loan -
1) Obtain a Certificate of Eligibility (COE): A Certificate of Eligibility is required as evidence of the fact that you’ve served the military.
2) Pre-Qualify for Your Loan Amount (optional): Under the prequalification step, you can access your eligibility by evaluating your financial standing against the loan requirement. Prequalification is not mandatory, though it gives a clear indication to lenders about your credit score, and puts you on a higher position compared to other buyers who have skipped this step.
3) Shop Around for a Home and Sign a Purchase Agreement: Once you’re prequalified, you can start with your house hunt program. Hiring a real estate agent with requisite expertise will make your life easy. Once you have finalized the house, you can proceed further with assessing the home loan programs.
Once house hunting is done, you can apply for a loan with a signed purchase agreement. After its completion, the VA-approved lender will order a VA appraisal, who will conduct the appraisal in order to ensure that the purchase price justifies the current market value of the property.
Shopping for a home loan is a tedious process if done improperly. However, you’ll be surprised to know that with meticulous planning, it’s possible to make this procedure easy. We can help you shop for a loan that will ensure your needs are taken care of using the available financial resources. We’ll guide you in cleaning up your credit score, getting qualified for a loan, and choosing a loan program.