Here's the Truth: Buying a Home with a VA Loan Made Easy

The acquisition of a home is a key milestone in one's life, and the Veterans Affairs Home Loan program offers the potential to turn this desire into a reality for veterans and active-duty military personnel at the same time. It is possible that some individuals may be curious about whether or not the process of purchasing a home with a VA loan is more difficult than other financing choices. However, the reality is that the procedure is relatively simple and provides various advantages to individuals who have served our country.

"The willingness with which our young people are likely to serve in any war, no matter how justified, shall be directly proportional to how they perceive the Veterans of earlier wars were treated and appreciated by their nation." - George Washington, 1st US President

Understanding the VA Loan

Understanding what a Veterans Affairs (VA) loan is and who is eligible for one is the first and most important step. The Department of Veterans Affairs supports the Veterans Affairs Home Loan Program, which offers a mortgage option to Veterans, active-duty military members, and their surviving spouses. In order to be eligible, you are required to fulfill certain service criteria and possess a Certificate of Eligibility (COE) that is still valid

The Benefits of a VA Loan

A VA loan does not require a down payment, which is one of the major advantages of this type of loan. This makes it easier for Veterans to become homeowners without having to save up a lot of money. Additionally, when compared to conventional mortgages, the interest rates for VA loans are typically lower. This can result in significant savings over the course of the loan's lifetime.

Starting the VA Loan Process

The first thing that needs to be done in order to get started with the process of acquiring a property with a VA loan is to locate a lender who specializes in VA loans. While working with a Veteran Mortgage Advisor (a Veteran Mortgage Advisor is a certified mortgage professional who continually increases their knowledge of VA home loan underwriting policies and procedures), you may find that the process of negotiating the intricate nuances of the VA loan procedure is much more enjoyable. Because these professionals have a comprehensive understanding of the VA loan program, many of them are Veterans themselves, they are able to walk you through each stage, ensuring that your experience is both seamless and effective.

Obtaining Your Certificate of Eligibility

After you have decided on a lender, the next step is to acquire your Certificate of Eligibility. Your Veteran Mortgage Advisor can help you with the process of obtaining this document directly from the VA, which is typically a faster option than trying to do it on your own. You will be required to provide a copy of your DD214 in order to request your COE. This document may be easily obtained on the website of the VA eBenefits program.

Pre-approval and Home Shopping

Once your VA lender has your COE in their possession, they will determine the highest price of the home that you are eligible to purchase. This information will include information about your income, assets, and credit. They will then send you and your Realtor® a letter stating that you have been pre-approved for the loan. This document will indicate to the sellers that you are a serious and qualified buyer.

Not only should you take into account the monthly mortgage payment when determining the price range for your new home, but you should also take into consideration other factors. It's possible that you'll want to set aside some money for things like house improvements, furniture, or other needs. Furthermore, it is of the utmost importance to make certain that your monthly payment does not absorb the entirety of your money. This will allow you to reserve some of your time for spending time with your family and participating in other activities.

Finding the Right Home and Closing the Deal

Working with a Realtor® who is aware of the financing options available through a VA Home Loan is the next step in the process of finding the ideal house. Once you have decided on the Realtor® you will work with, not only will they help you locate the house of your dreams, but your Realtor® will be there to assist you in negotiating terms with the seller and writing a purchase contract. In my opinion, the right Realtor® will save you thousands of dollars and make the process so much more enjoyable.

Immediately following the signing of the purchase contract, your VA lender will get in touch with the VA in order to make arrangements for a VA appraiser to evaluate the property. The VA's purpose is not just to ensure that the home's valuation coincides with the agreed-upon purchase price but also to discover any potential flaws that could compromise the property's safety or livability. As a result, this inspection is more extensive than comparable inspections that are undertaken for conventional financing. The purpose of this procedure is to safeguard the interests of the Veteran. Your Realtor® and Lender will likely also advise getting an additional home inspection to give you more peace of mind. The VA does NOT require a home inspection. This is often a myth about the VA home loan.

Closing the Loan

Once the appraisal has been completed and the underwriting department has determined that it is acceptable, the underwriter will analyze your loan application to confirm that it satisfies all of the standards for a Federal Veterans Affairs loan. Your Veterans Affairs home loan will be granted if all of the requirements are met.

Participating in the loan closing is the final stage in the process. During this phase, you and your co-borrower, if applicable, will sign the relevant documents. During the closing, the title agent or attorney will provide an explanation of the loan terms, requirements, and specifics of the monthly payment. Once all of the parties involved have signed their respective agreements, the monies for your new loan will be sent to escrow, and the loan will be considered to have taken "close." You will take possession of the keys to your new house at this point, marking the moment when you officially become a homeowner.

Utilization of Entitlement and Approval Times

At the time that the Department of Veterans Affairs gets a report of the loan, they will modify your Certificate of Eligibility to reflect the utilization of your entitlement and then return it to you. This is an important point to keep in mind. As a result of the fact that this procedure is carried out automatically and that you are not required to do any additional steps, the whole experience is simplified for veterans.

How long does it take to get approved for a VA loan? This is a question that is frequently asked by prospective VA loan borrowers. The response to this question is contingent upon a number of circumstances, including the current volume of applications received by the lender and the speed with which the borrower is able to supply the required documentation. It is crucial to cooperate with a qualified Veteran Mortgage Advisor, swiftly react to documentation requirements, and retain flexibility in your availability in order to guarantee that the process goes smoothly and efficiently. While I can't answer the question for every lender, the VA Mortgage Vet team is averaging 18 days from application to being ready to close the loan for our VA loan applicants.

Conclusion

To summarize, the process of acquiring a home with a VA loan is not intrinsically more challenging than the process of using other types of financing strategies. In fact, the Veterans Affairs Home Loan program provides veterans and active-duty military personnel with a multitude of advantages, including the absence of a down payment requirement and reduced interest rates. You will be able to successfully traverse the home-buying journey and realize your dream of becoming a homeowner if you work with an experienced Veteran Mortgage Advisor, receive your Certificate of Eligibility, and follow the step-by-step process that has been detailed above. We owe our service members a debt of gratitude as a nation, and the Veterans Affairs Home Loan program is one way that we want to commemorate the sacrifices they have made and the commitment they have made to our country.

For further advice on how to make sure your loan process goes as fast and smoothly as possible, please read our article titled How much does a VA loan cover for a house?