There are a number of ways that a person can get prepared for home ownership. One of the best things that Veterans and Service Members can do is to apply for a Veterans Administration Home Loan. Attractive interest rates and other incentives make a VA Home loan a wise choice for many people. Here are a few of our top tips for getting a VA Home loan.
Pre-Approval.
A huge time saver in more ways than one, if you can manage it you should definitely get pre-approval. The time saved and the reduced stress more than makes up for any added hassle. Plus, by getting pre-approved you can know your limits, and have a much better set of goals as you shop for a home. This will give you a sense of pride and confidence as you seek out the perfect house for yourself. Housing is a competitive thing, and if you have a pre-approved VA loan amount, you will be one step closer to home ownership.
Adjustable or Fixed Rate?
Most Veterans Administration home loans are gotten in the same place as conventional loans, with the same lenders. It is a smart investment to shop around and know what is available. You should consult or talk to at least three lenders, and compare rates. It is possible for you to obtain a fixed rate loan, one you negotiate with bank or lender you choose. You can also opt to get a VA adjustable rate on your mortgage. (ARM). ARM interest can be adjusted up to one percent each year, and no more than five percent over the entire duration of the loan period.
So should you go with an adjustable or a fixed rate? It is something that really depends on you the buyer. Fixed rate locks in a set amount and can be good for peace of mind, but if you think you may only be in your home for a shorter time, a few years at most, perhaps an adjustable rate is for you.
Consider a VA Guaranteed Loan.
A VA guaranteed Loan has advantages other loans don’t have. Plus the VA can provide a guarantee for up to four hundred seventeen thousand dollars. This is a higher amount than most private conventional home loans offer.
Know Your Credit.
As many as seventy percent of the credit information on credit reports in the USA have errors on them, an astounding figure all things considered. Know what is on your credit report, and make sure it’s accurate. These are just a few items to consider, but knowing them can save you time, energy and money in the long run.