Anyone looking to buy a home may easily feel overwhelmed by the daunting number of options and statistics thrown their way. From the facts about mortgage rates to the figures indicating interest and percentage of income, it quickly becomes a mess of numbers. Thankfully, the nation’s veterans are able to benefit from VA loan programs that help them make smart decisions by clarifying this confusion.
And this is likely a more popular option than you would think. In fact, in 2016, more than 700 thousand home loans were guaranteed by the VA across the nation. This VA home loan program has even assisted more than 22 million veterans total, indicating just how effective the program is. To help veterans out further in understanding the home loan process, here we’ve put together the ultimate guide to the five VA loan steps:
- Select a Lender.First and foremost, it is important to choose a lender that you trust and that is approved by the United States Department of Veterans Affairs. Make sure the lender has extensive knowledge of VA loans, as these do differ from conventional loans. The lender should have a strong understanding of the process and regulations for these loans.
- Obtain a Certificate of Eligibility. The Certificate of Eligibility, or COE, proves that you meet the requirements to qualify for a VA home loan. The lender can usually provide this to veterans after they answer a few questions. These questions generally deal with the veteran’s service and can even be completed online.
- Sign a Purchase Agreement. The next of the five VA loan steps is to sign a purchase agreement. Of course, this step should only be completed once the veteran has chosen their perfect home. Like choosing the right lender, it is important to choose the right real estate agent with an extensive knowledge in the VA process. These agents will also show you around to various home until you choose the right one. And, when you are ready, sign on the dotted line!
- Wait for the Lender. After the purchase agreement has been signed, the lender must process the application. In this step, a VA appraisal takes place, in which an appraiser ensure that the home meets the VA minimum property requirements. This usually takes about 10 days and, while this occurs, the veteran proves to the lender that they qualify for the loan. If everything at this point passes through, then the loan is approved.
- Move In! Finally, the fun part begins! The last of the five VA loan steps is to legally transfer the property from its previous owner to the veteran. After signing the loan documents, as well as paying any closing costs, it’s time to move in to the new home!
At the end of the day, buying a home is never easy. But with this step-by-step guide to VA loan steps, the picture becomes clear. VA mortgage rates can be about 50 points lower than those of conventional loans. With such a bargain, it’s no wonder the VA helps out so many veterans!