After years of service and hard work, you’ve decided to finally retire and set down some roots. However, homes are expensive investments and navigating the world home financing can be a challenge. Luckily, many lenders are experienced and certified in offering home loans to our nation’s veterans. Just follow these 10 simple steps and you are sure to find the home of your dreams.
1. Review Your Credit
First of all, you will need to be sure that your credit is up to par with current home loan standards. Large debts, especially property foreclosures, can be a red flag to potential lenders and put your VA loan in danger of being denied. The best thing you can do is review your credit score before beginning the application process so you aren’t surprised when something comes up.
2. Choose a Lender
Next, you will need to choose a mortgage lender, but not just any loan office will cut it. VA home loans can only be originated by lenders approved by the U.S. Department of Veterans Affairs. You may even be able to find a lender who specializes in VA loans and is, therefore, more prepared than most to process your new mortgage.
3. Obtain a COE
After finding a qualified lender, you will need a Certificate of Eligibility in order to verify your ability to obtain a VA home loan. Many pieces of evidence will be required depending on your application type, whether you are active military, a veteran, or the spouse of a service member. That evidence will then be used to determine how much entitlement you can receive.
4. Pre-qualify
Though this step is not required, it can give house-hunters a clear picture of their mortgage future. It can provide insight into your credit/debt ratio. It will also help you figure out your likely monthly mortgage payment and let you know how much of a house you can really afford.
5. Find a Home
Now that you know how much you will be able to spend on your new property you can begin to look for your dream home. Maybe you already have children or plan on starting a family and would like to find a school district that will match the desires you have for your children’s education. Perhaps you are interested in rural living far away from the bustling city or you would rather live within the city for easy access to work. Whatever your desire, this is the fun part of buying your new home.
6. Sign a Purchase Agreement
Once you have found your desired property in the setting of your choosing you will need to sign a purchase agreement. This agreement will outline which fees will be paid by you or the seller. Consulting an experienced VA real estate agent is helpful because they will know what is required for the VA loan you are applying for.
7. Have Your Application Processed
Upon signing your purchase agreement, your mortgage lender will be ready to process your application. They will begin by verifying all the information you provided during your pre-approval. Then he or she will calculate your likely mortgage, taxes, and insurance payments in order to fully qualify you for their services.
8. Get a VA Appraisal
Different from a traditional home inspection, a VA appraisal will be ordered by your lender. This task is meant to determine if the agreed-upon purchase price corresponds to the property’s current value. It will also need to pass some minimum property requirements. If the home passes this appraisal process and your lender has verified your ability to qualify, you will then receive the VA loan.
9. Close on Your Loan
The final and most agonizing step for many home buyers is the closing process. During this time, you will sign documents that confirm your understanding, and agreement to, the terms of the VA loan. Proof of homeowner’s insurance and the payment of any closing costs will also be required at this time.
10. Move In
the most gratifying moment of this long and arduous process will be when you finally get the keys to your new home and begin to move in. The children can choose their bedrooms. You and your wife will get the chance to decorate any way you like. Then it is just a matter of time before you are comfortable in the knowledge that you have invested wisely in the perfect property for you and your family.
In conclusion, buying a home doesn’t have to be a nightmare. There are many steps involved in the process and it does take some time, but with a little patience and the right knowledge, you will navigate the world of VA home loans and come out a property owner.