Purchasing your first home can be exciting and intimidating at the same time, perhaps even more so when you’re figuring out the VA home loan process. There are a lot of questions you probably have. Thankfully, we are here to provide you with the answers you need.
Our goal is to make your first time home buying experience more exciting and less intimidating. So, reach out and contact us with any questions. Visit our page of the specialists in our network and they’ll be more than happy to ease you through the process of securing your VA home mortgage financing and buying your first home.
Which loan option is best for your situation?
Even if you’re at the very beginning of the home buying process, you have probably already discovered there are several options out there for financing your first mortgage. Each program has its own benefits. For current military members, veterans, and military families, the VA Loan often provides the exact benefits they desire.
What are the benefits of a VA home mortgage?
Manageable qualification requirements
- Since these loans are financially backed (guaranteed) by the Department of Veterans Affairs and thus lenders assume less risk, there are no credit checks for qualification and even when factoring interest rates, a borrower’s credit score is less of an issue than with traditional home loans.
Down payments are not required
- For a lot of first time home buyers, saving thousands of dollars toward a down payment is daunting. This is the same for service members and veterans. With a traditional mortgage, a home buyer would need to put down a minimum of 5 percent toward the purchase price of their house and with Financial Housing Administration (FHA) loans they would have to put down 3.5 percent.
- That means, if the home is $250,000, a traditional lender would require $12,500 down and an FHA lender would require $8,700. Knocking that number down to $0 allows service members and veterans an opportunity to buy a home they otherwise might not have had.
Monthly payments are lower than traditional home loans
- Thanks to competitive interest rates available through the VA Loan program as well as the absence of a private mortgage insurance (PMI) requirement, VA Loan borrowers are able to save thousands of dollars throughout the life of their home loan.
What is your price range?
After you decided to start searching for your first home, the initial question you probably asked yourself was, “What are affordable payments for me?” There a number of factors that go into landing yourself a mortgage payment that you can manage.
We at Veterans Authority have created a payment calculator for the VA Loan program. Give it a spin and see how much of a payment you would feel secure in.
The main factors that determine an affordable mortgage are:
- Existing payments toward debt
- Annual income
- How much is put down for a down payment, if any
- Extra factors, such as homeowner association fees and insurance
Helping you find a real estate agent
Since the process can be complex, make sure you find a real estate agent who knows the process of qualifying and financing a VA home mortgage. It’s also important to find an agent who can identify the requirements of current military members and veterans.
Because of this, we at Veterans Authority have compiled a directory of real estate agents who specialize in helping military families find the right home for them.
How do you get pre-approved for a VA home loan?
To begin with, you’ll want to set up an appointment with a loan officer. The loan officer will look over your financial situation and figure out how much of a loan you are qualified for. Once that is determined, you will complete and submit the application.
If you have questions or would like to begin the process, visit our Specialist page and get started!
Additional resources through Veterans Authority
Here are some pages we have set up just for home buyers trying to qualify for the VA home loan program:
Mortgage calculator specifically for VA Loan borrowers
VA home mortgage glossary