The benefit of a VA loan is great for military members. It is a flexible, no-down payment loan that has been assisting military members purchase homes since 1944. There are many ins and outs to the VA loan process is unique and even longtime VA borrowers aren’t familiar with all of the benefits and quirks.
As with any lender, find a VA lender that will prequalify you to get an estimate of how much home you can afford based on your income, credit, entitlement and other financial factors. You can get a free quote with Veterans United Home Loans online anytime. Prequalification is a basic first step that paves the way for a much more powerful step – VA loan preapproval.
Once you’re approved, you are in the driver’s seat to spring into action and buy a home. In today’s market, don’t wait to put in an offer on a home you love. The market is moving fast and you don’t want to miss out on a great property. Work with your real estate agent to put together a strong offer that the seller can’t refuse.
VA appraisal and underwriting is a more lengthy process, but once it’s complete you will receive a clear to close and move onto close your loan. Closing requires the buyer to sign LOTS of paperwork, but you will receive your keys to YOUR new home!
A great benefit about VA loans is that they are reusable. You may use the benefit of a VA loan as long as you pay off the previous loan. VA loans are not usually used for fixer-uppers, small businesses, or a working farm. They are also not allowed to purchase an investment property or vacation home. You can use the benefit to purchase a duplex or multiunit property IF you live in one of the units.
Getting to know the ins and outs of a VA loan can be complicated. Trust Own NY and our agents to be well versed in these nuances and assist you in purchasing a home with your VA loan.
Here’s a short list of pros and cons of a VA loan:
-No down payment
-No mortgage insurance (is a monthly fee you pay with other programs when you’re not putting at least 20% down)
-No prepayment penalty
-Tougher inspection/appraisal process (in addition to your home inspection, your home will also be appraised by a VA appraiser)
-Limits on co-borrowers
-Not to be used on vacation homes or investment properties
The VA loan is a great tool for any military member. Be sure to call Own NY and work with our home buying experts that will walk you through the process.