One of the main dreams of the military is to provide a comfortable home for their family. As such, the government has devised the Veteran Loan or VA – a program that will benefit the military for the fulfillment of that dream that is actually woven into the ultimate American dream of providing every American with a comfortable home to live in. Here are some tips on how veterans can get such a loan.
Find out if you are eligible
Veterans, those on active duty, or members of the National Guard or selected reserves may apply for a VA loan, pending determination of eligibility. In order for applicants to determine eligibility, a completed VA 26-1880 form with proof of service must be submitted. Eligibility is usually determined 10 days after submission.
Inspection of the house of your choice
There are several types of homes to choose from, but of course you just need to select the one that best suits your preferences, needs and lifestyle. Choices can complicate your decision making. But you can still seek help from real estate professionals licensed by your state's government. They can determine affordable price ranges and can help you schedule home visits so you can inspect the home and see what's in store for you and your family.
Sometimes sellers may ask buyers to submit a veterans home loan pre-approval. So, to make sure everything runs smoothly, you might want to get pre-approved before you even close deals. For some sellers, applying for pre-loan approval means serious interest in the property being sold.
Have the house for sale appraised
A home appraisal is also required to qualify for a veteran home loan. In some states, the pre-approval is issued with a tracking number allowing the lender to track the progress of the appraisal as well as the status of the loan application. The main reason that an appraisal is necessary is to determine whether the price of the house will be sufficient to become the security for the requested loan.
You must remember that the VA loan is designed with a no down payment plan. The government is counting on your honesty and reliability to repay the monthly veterans home loan dues. This is in recognition of the selfless efforts of you and those who wear your uniform to serve and protect the country, its territories, borders, resources, property, interests and people.
Once all of the above steps are completed, you will be considered eligible to get the loan. With the help of an insurance agent, you will eventually close the deal finalizing the insurance clauses to protect both the seller and the new owner from damage and losses. All documents will then be recorded in the public archives.