There are many positives to getting a Veterans Affairs home loan (VA loan) such as that the mortgage can be 100% financed and that there is no mortgage insurance needed. This can make attaining a VA loan very beneficial and appealing to a home buyer.
Starting the home buying process is a very exciting time in a person's life. Whether you are starting the journey to buying your first home or if you are on the search for your forever home, you may be wondering how a person goes about attaining a VA loan.
Attaining veteran home loans is very similar to a "regular" mortgage process.
Below are the steps to attaining veteran home loans
- Make sure you are eligible: The very first step is to make sure that you are eligible for one of the many veteran home loans. You either need to be a military veteran, an active duty person, or a member of the National Guard or selected Reserves. You must then submit the VA Form 26-1880, along with proof of your service to the VA Eligibility Center
- Get pre-approved: The next step to attaining VA loans is to get prequalified. Just like with a standard mortgage process, you need to fill out forms to see if you qualify for a VA loan.You want to be prequalified before you start shopping for a home because you want to know if you will even be approved for a veteran home loan and the exact amount you will be approved for. This will help you save time so that you don't shop outside of your price range. For the pre-approval process, you will most likely need to show tax returns, proof of income and employment, asset list, and bank statements.
- Start home shopping: After you get pre-approved, the next step is to find a real estate agent and start searching for a home that you will use one of the bank's VA loans for. This is most definitely the most fun part of the home shopping process. You should look at a range of homes to see what is best for you, especially if this is your first home purchase. Keep in mind when shopping for a home that the VA has loan limits. These limits differ depending on the location where you are home shopping.
- Put an offer on a home: Once you find the house you want to buy, you will need to put an offer on it. Your real estate agent can help you with this step of the VA loan process so that you can put in a contract that will help you win the home.
- Get the keys to the home: When your offer is accepted on a home, the lender that is giving you the VA loan is going to do their routine to make sure that the home can be transferred to you. This includes getting an appraisal on the home, getting the home inspected, checking the title on the home, checking your financial documents once more, making sure you have bought the required home insurance, and so on.After all of that is done, the lender will then arrange for a closing date so that you can look over and sign all the loan papers. At the home closing you will recieve a key to your new home!