VA LOAN. QUALIFICATIONS. PRE-APPROVAL
FIND A MORTGAGE LENDER
A crucial step in the home buying process is securing a mortgage lender. A mortgage lender will be able to tell you how much house you can afford.
THE OPTIONS
CONVENTIONAL LOANS
A conventional loan requires up to a 20% down payment.
PMI (insurance on your mortgage) is often required.
A conventional loan is riskier for the lender, therefore there are more requirements to carry PMI and the loans typically have higher interest rates.
VA LOANS
What are the benefits of using a VA Loan?
It offers two things, a loan with no down payment, and typically a better than average interest rate.
What is the VA Loan?
The VA loan is a zero down payment mortgage that is backed by the Veterans Administration. The VA does not provide the loan, instead, they act as the security of the loan. The VA promises to cover the losses of the bank if the borrower fails to pay their mortgage.
Consider this:
Homebuyers are usually required to pay a down payment, usually 20% of the purchase price in order to buy a home. On a $250,000 home a 20% down payment would be $50,000. That is a lot of cash. If you use the VA loan benefit you pay ZERO! That gets your attention, right? You may be in an area of the country that requires a VA Jumbo loan due to the cost, but a VA lender can help you figure that out.
THE PROCESS
You’ve used MILLIE’s Installation Guides to determine which area you’d like to put down roots (for now or for good), and you have an idea of what you’d like to spend. Now is the time to start shopping around and interviewing lenders. For a handy list of questions to ask, download MILLIE’s VA Loan Toolkit.
If you’re within three months of your home purchase, now is the time to connect with a lender and get that preapproval letter. This will streamline conversations with real estate agents and sellers.
Once you’ve decided on a home, it’s time to gather up all your paperwork and start the mortgage process. A list of documents you’ll need to compile can be found in our VA Loan Toolkit. Be sure that if you’re getting ready to PCS, that your paperwork stays with you in your PCS Binder and doesn’t go on the truck! It’s a good idea to keep important documents in the items you personally carry if at all possible.
GET CONNECTED
We recommend choosing your lender based on customer service and experience with the VA loan.
Our friends at Military.com want to help you find the perfect lender and they have partnered with LendingTree to help you decide on who to trust with this decision. Connect with them today and you’ll be one step closer to making informed and confident decisions when it comes to home ownership. That’s a win in our book.
**It is important to note, MILLIE does not receive any compensation for recommending any mortgage lenders. Military.com and Lending Tree are recommended by MILLIE based on their reputations for customer service and desire to help serve military families.**