Do you qualify for a VA loan? If so, and you are interested in buying a home, this is something you should strongly consider. When compared to more traditional options, it is easy to see that this type of loan could be much better for you.
In the past, conventional loans were often times similar to VA loans. However, with the mortgage industry changing over the past few years there has been a large separation between the two ? especially when comparing the terms.
What are the Advantages?
First things first, a VA loan is the perfect choice for veterans who are interested in buying a home. You are not required to use this type of loan if you are a veteran, but it definitely gives you the opportunity to move forward with some special benefits.
Another benefit is the fact that you may not need a down payment. The only time that you do is if your lender requires it or if the purchase price is more than the value of the property.
Tip: to ensure that you get the best loan possible ? especially in terms of the down payment ? you must compare multiple lenders. Chances are that you can find several banks in your area that offer VA loans.
Now that you are aware of the two main benefits of a VA loan, here are several others that may intrigue you even more:
– A fixed interest rate that is comparable to anything that you would get with a conventional loan product
– As the buyer, you will be informed of the estimated value of the property
– Long repayment terms, allowing you to get the smallest monthly payment possible
– The ability to prepay your loan without any penalty, allowing you to payoff your loan sooner rather than later
Steps to Apply for a VA Loan
With so many benefits, you may be excited about applying for a VA loan in the near future. The steps that you must take to do so are as follows:
– Apply for a certificate of eligibility
– Sign a purchase agreement for the home you are interested in buying
– Order a VA appraisal
– Apply to a lender that offers VA loans
– Close the loan
As you can see, the steps to applying for a VA loan are not much different than those associated with a conventional mortgage.
Want to speed up the process? If so, choose a lender that has been approved for automatic processing. By doing this, your loan can be closed by the lender without being forced to wait for the VA?s approval of your credit application.
As you can see by now, there are many reasons why you may want to apply for a VA loan. If you qualify and are in the market for a new home, you owe it to yourself to learn more about this program and whether or not it can truly help you get the best possible loan.