Understanding the VA Mortgage Loan Process
For veterans, creating a secure future for themselves and their family is the most important task. This is why Veterans Affairs offers them help in every possible way, including in getting their mortgages and house financed. For those who are not aware of such benefits, understanding everything about them can be quite a daunting task. Here is a short walk through to tell you all need to know about getting a VA mortgage loan.
Basic eligibility criteria
The fact that it is a loan guarantee given by the Veterans Affairs tells you quite a bit about who is eligible to get it. Specifically, it covers:
- A veteran, subject to certain service and discharge related conditions
- Active duty personnel
- Members of the National Guard or a Reserve
Apart from these, there are a few other categories of people as well who can get VA loans. Veterans of the World War II who fought with the Allied Forces may also be eligible for these loans. In case you do fall into either of these categories, you will need to attach a form, which is VA 26-1880, furnishing your proof of service along with it, to the Eligibility Center of the VA.
Obtaining your COE- Certificate of Eligibility
The next step in getting a VA loan is to get your Certificate of Eligibility. This is a part of the pre-approval process, and this will not only guarantee you that a VA loan is possible for you, but you will also know the limit of the amount that you can get via it. Doing this will help you save time and shop only for those homes which fall within your budget range. This step will involve for you to produce all of your income proofs- ranging from your tax statements to your income records, including whatever else the VA asks you.
Looking at homes
Once you have obtained the pre-approval, you will then need to find agents and look around the houses that you wish to buy. A VA loan is only backed by the VA- it is granted to you by some private institutions or lenders which are VA approved- which means finding the right agent is also important. You can easily get 100% of the home’s price financed by the VA loan as well- which means that you will not need to give any down payment.
Putting an offer and closing the deal
Once you have selected the house that you want to buy, putting a deal on it will be the next step. Your agent will help you in creating a favorable contract here, and if it is accepted, you will just have to wait a little before the house passes some inspections and gets an appraisal. Once all of that has been taken care of, you will be ready to move into your new house after setting a closing date for you to sign the papers and take possession.