One of the primary dreams of military members is to provide a comfortable home to their families. As such, the government designed the veteran or VA loan – a program which will benefit military men towards the fulfillment of this dream which is in fact weaved into the ultimate American dream of providing every American a comfortable home for living. Here are some tips on how veterans can obtain such loan.
Knowing if you are eligible
Veterans, those in active duty, or members of the National Guard or selected reserves may apply for a VA loan, pending determination of eligibility. For applicants to determine their eligibility, one must submit a duly-accomplished VA Form 26-1880 along with proof of service. Eligibility is usually determined 10 days after submission.
Inspecting home of your choice
There are many types of homes under your choice, but of course, you only need to select the one which is best for your preferences, needs, and lifestyle. The choices may complicate your decision-making. But you can always seek help from real estate professionals licensed by your state government. They can determine affordable price ranges and can help schedule home tours for you to inspect the home and see what’s there for you and your family.
Sometimes, the sellers may require the buyers to present a pre-approval of the veteran home loan. Thus, to make sure that everything will flow seamlessly, you might want to obtain a pre-approval even before closing deals. To some sellers, the request for the loan pre-approval signifies serious interest with the property being sold.
Let the house for sale be appraised
Home appraisal is also needed to avail of a veteran home loan. In some states, the pre-approval is issued along with a monitoring number for the lender to keep track of the appraisal’s progress as well as the status of the loan application. The primary reason why appraisal is necessary is to determine whether the home’s price will be sufficient to become collateral to the requested loan.
You must remember that the VA loan is designed with a no down payment scheme. The government relies on your honesty and trustworthiness to repay the monthly dues of the veteran home loan. This is in acknowledgement of the selfless efforts made by your and those in your uniform to serve and protect the country, its territories, boundaries, resources, assets, interests, and its people.
After all the above steps are completed, you will be deemed eligible to obtain the loan. With the help of an insurance agent, you’ll finally close the deal finalizing insurance clauses to protect both seller and the new owner from damages and losses. All documents will then be entered into public records.