19 Apr The Top Mistakes You Should Avoid When Applying For A VA Loan
A significant part of the American Dream- the dream for which our veterans and warriors sacrificed their lives- is owning a house. Veteran Affairs (VA) home loans are mortgages that do not require any down payment for qualified Veterans and service members.
It is possible to make mistakes while applying for a VA loan, even though the process is straightforward. According to real estate professionals knowledgeable about the program, these are the top five mistakes VA loan applicants can avoid when applying for a loan.
A lack of knowledge of VA regulations by the agent.
A real estate agent is familiar with VA loan procedures is recommended when buying a house with a VA loan. To qualify for a VA loan, you must find a home that meets VA loan property standards. With the help of an agent who understands VA financing, you can find and purchase a house that meets VA loan requirements.
Make sure you meet VA eligibility criteria and follow the advice of a knowledgeable VA agent.
Refrain from contacting your lender.
There are several home mortgage options available to veterans. In spite of this, one-third of veterans purchasing homes should be aware that they qualify for this benefit.
When you first meet with your lender, discuss your military status. Your lender will inform you of the benefits and advantages offered to Veterans and active military members, such as 100% financing through VA loans.
You can take advantage of 100% financing a year sooner than if you had to save money for a down payment. Additionally, VA loans do not require mortgage insurance. Therefore, be sure to inform your lender that you are a military member and ask about the perks you may be entitled to.
Neglecting to consider all upfront costs
Despite the fact that VA loans offer several benefits, including opportunities for 0% down payments, there are some upfront charges for borrowers. It is still necessary to pay for home inspections and appraisals when you buy a house, regardless of how much money you put down.
While there will be some initial fees, they won’t be prohibitive.
Ignoring the investment potential of your home
Remember that your property is an investment even if you have no immediate plans to move. Buying a property may assist you in accumulating money, which takes the form of home equity.
Choose a home design that’s popular or a neighborhood that is in high demand. This will increase your chances of selling your house when it’s time to move. Additionally, you can rent the house while waiting to sell it if you need to relocate.
Furthermore, VA loans are assumable, allowing you to transfer the debt and property to another eligible Veteran.
Buying other significant items before closing
Last but not least, this mistake can be made with any mortgage. It may be tempting to begin looking for furniture, gadgets, and accent items for your new home after you choose a site and accept your offer. However, before buying that big-screen TV and furnishings set, you should wait until your loan is complete.
Opening a new credit line or making a significant purchase after your mortgage application has been approved may lower your credit score and disqualify you. Even if your loan has been approved, you are now a homeowner.
Be cautious; wait to make significant financial decisions after the closure.
The Takeaway
With a VA loan, you can make the home-buying process more convenient and financially sound. House buyers will always make mistakes, but working with a real estate agent familiar with VA loans and a skilled lender might be beneficial. Veterans can achieve the American dream through VA home loans. You can, in fact, achieve your dream home by avoiding the above mistakes.
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