Buying A Home with the VA Home Loan
Music plays Buying a home requires the three P’s:
process, patience, and persistence. Want to buy or build with a VA-guaranteed Home Loan? Knowing the process can make the other two P’s a lot easier. Here are 5 easy steps! First, get pre-approved with a lender.
They will verify your financial information and determine which products you may qualify for. Be sure to budget for a monthly mortgage payment you can afford after all your other expenses are paid. Remember, life changes, and those changes affect the amount of money you have on hand to make your mortgage payment. Also, research and contact multiple lenders. Each lender sets its own interest rates, discount points, and fees; some of these rates and fees are negotiable. Find a lender who offers the most favorable terms for you. Your family, friends, and colleagues may have some recommendations. Second, confirm your eligibility for the VA Home Loan. You will need to secure a Certificate of Eligibility, or COE, from VA each time you apply for a VA loan. Your lender can do this for you, or you can request your COE online at ebenefits.va.gov. Third, find a real estate agent and start shopping!
A trusted real estate agent can help you navigate the homebuying process. They’ll help you purchase the home that you like, even if a seller or seller’s agent tries to talk you out of using your VA Loan benefit. When you find the home you like, you can sign a home purchase agreement. Be sure your agent includes the “VA Option Clause” in the contract, which voids the contract if the property does not appraise at or above the contract price. Forth, wait for the property appraisal to be completed. Your lender will order the appraisal to determine the value of the home. This fully independent appraisal will tell you if the home is reasonably priced for the area and meets basic property requirements. It’s strongly recommended you get a home inspection. Your realtor or lender may recommend someone, but you should find someone who is not connected to anyone in the sale. You want an uniased evaluation of the home, so you can make the best decision for you and your family. Both the appraisal and inspection can serve as useful negotiating tools. Be persistent! If there are issues such as with the home value, the roof, or appliances, you can negotiate with the seller about lowering the price, replacing or fixing the issue, or splitting the costs of necessary repairs with you. Finally Step 5, before you sign your closing documents, you’ll have to decide how to pay the VA funding fee, which is required by Congress. You could pay the fee in cash, or have it financed into the loan. But remember, if you are currently receiving disability compensation from the VA, prior to the date of the loan closing, then you are exempt from the funding fee. If you have any questions about the funding fee or your exemption status, call the VA at 1-877-827-3702. That’s it! Buying a home is a huge investment and it does take time to complete the steps. But all it takes is a little patience and persistence! And now that you know the process, patience and persistence might come a little easier! Thank you for your service to our nation.