7 VA Loan Tips for First-Time Homebuyers
Serving in the armed forces is one of the most honorable experiences many men and women can have. Being in the military also comes with a lot of perks and benefits, one being VA loan.
A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs (VA) issued by private lenders and available only to veterans, active-duty service members, and their eligible spouses.
Here are a few advantages of buying through a VA loan:
- low-interest rates and closing costs
- $0 down payment
- the option to forgo private mortgage insurance (PMI)
Additionally, the VA did not set a minimum credit score. However, having stellar a credit score can help you attain rock bottom variables or fixed rates. For peace of mind, be sure to get a free copy of your credit report and check for errors before applying. If you notice anything suspicious in your report, you can hire a credit repair company to help or you can remove the inaccurate items yourself.
Here are 7 VA loan tips that you need to consider if you’re thinking of buying a home through a VA loan.
- Get started without the Certificate of Eligibility (COE)
- A COE is issued by the U.S. Department of Veteran Affairs and is proof that you are eligible for the VA home loan benefit
- Your credit score matters, but it’s not everything
- Lenders tend to be more flexible with VA loans
- Make sure you have enough saved
- You are still responsible for certain closing costs (i.e. application fees, insurance, inspection fees, real estate taxes, and more)
- Shop for a VA lender and get pre-approved
- Look for reputable lenders that exclusively cater to military members, veterans, military spouses, and their families – compare all offers
- Find a real estate agent that’s VA-savvy
- Contact your VA regional loan center and ask if they can recommend a VA-savvy agent in your area.
- Choose a property that’s VA-approved
- Properties purchased through a VA loan can’t be used as vacation homes or investment properties; condos must meet certain requirements
- Close the deal only when you’re ready to move in
- Interested homebuyers must complete the VA’s minimum occupancy requirement
Please reach out to us if you we can help you with your real estate needs.
Preslee Real Estate