Process to get VA loan
VA loan is one of the most beneficial loan products available in the market. This loan is especially very much beneficial for veterans as it provides good rate of interest and lots of other benefits like easier repayment option, better refinance option etc. Let us understand the process of getting the VA loan. As in case of any other loan, process of getting VA loan could be very simple if all the paperwork is intact. If the paperwork is not complete, there might be some hindrances in getting the loan.
Benefits that VA loan offers however do force an individual to go through the process. One of the biggest benefits is that the borrower has the option to finance 100% which is not available in other loan options.
When one has to apply for VA loan, the first thing that he needs to ensure is that he is eligible for the loan. It is always advisable to double check the eligibility even if you know you are. Eligibility can be checked on the website of ‘US Department of Veteran’. Along with the eligibility, it also provides list of supporting documents required. Apart from service personnel, there are other people also who are qualified for VA loans. This website provides details of those as well. The prospective borrower has to produce certificate of eligibility once all the criteria are established.
Once the borrower receives the Certificate of Eligibility, the next step is to determine if the property is eligible under the VA norms. Below are the guidelines for homes which are considered eligible:
- There are certain projects which are approved by VA. The loan applied should be for one such property which is VA approved.
- The property should be used as primary residence.
- Loan can also be issued for a home that is already built.
- Customer may also prefer to stay in a manufactured home or mobile home. VA loans are also provided for that.
- If the borrower is looking to make energy efficient improvements in house like installing solar panel etc., VA loan can be approved for that as well.
- If the loan is already existing and refinance is required.
Once the borrower confirms that the property is eligible under VA loan, the next step is to choose the lender whom to go with. Since VA loans are government backed, most of the lenders offer a good rate. The borrower has to select the best rate that is offered. But along with the mortgage rate, the borrower also has to look into the lender’s history and who would be easier to work with overall.
The next step is to fill in the application. Most of the lenders provide assistance in the same. Application form needs to be carefully filled in with all the right information and hence professional help on same is advisable. Once the application form is filled in, the lender will go ahead with the process at his end after collecting all the required documents at his end.
After the application is submitted and the loan is approved, the borrower signs the document and that’s when the property is actually transferred in name of the borrower.
So, as we saw, the process is not tough at all if all the proper care is taken at the right time.