What Veterans Must Know Before Buying Their First Home
As a first-time homebuyer, the process can be overwhelming and confusing. At HomePromise, our VA loan experts have prepared this article for you. If you are an active military member or veteran planning to buy a home in the next few months, this article is for you.
HomePromise provides the information you will need to feel confident when buying your first home. We can help you with your first-time home-buying journey along with VA loan facts. We understand the VA home loan program and can guide you through the closing process. We can also explain the VA funding fee and what qualifies for an exemption.
First Time Home Buyer and VA Loans
When it comes to buying a home for the first time, veterans have an advantage in obtaining a VA loan. A VA loan is a mortgage loan offered by private lenders, such as HomePromise.
Unlike FHA loans, a VA loan is guaranteed by the Department of Veterans Affairs (VA). This means that as a veteran, you can enjoy benefits such as a no down payment requirement and lower interest rates if you qualify.
VA loans do not require private mortgage insurance (PMI). This is different from conventional loans. It’s possible for hundreds (or even thousands) of dollars to be saved through the use of your VA home loan benefit.
Additionally, there is no prepayment penalty for paying off your VA loan early, giving you more flexibility in managing your finances.
To be eligible for a VA loan, you must first meet certain requirements. These include serving at least 90 consecutive days of active duty during wartime, or 181 days during peacetime. You will also need to obtain a Certificate of Eligibility (COE) from the VA before applying for the loan. HomePromise can help you do this quickly by calling 800-720-0250.
The VA Loan Process
It’s important to note that while there are many benefits to getting a VA loan, there are also some limitations. VA loan limits may be placed on how much you can borrow. The limits vary by county and state plus they can change every year.
The VA loan process is specifically designed to make it easier for veterans to buy their first home. First, you need to get pre-qualified for a VA loan by showing proof of your military service and income to a VA lender like HomePromise.
To see if you qualify, HomePromise will consider your credit score, debt-to-income ratio, as well as other factors. Also, call HomePromise 800-720-0250 as they can obtain your COE quickly and then, evaluate your borrowing capacity.
Once you find the right home that fits within your budget, it’s time to submit an offer. Your real estate agent will assist you in negotiating with the seller. They will ensure that all necessary steps are taken before proceeding with the purchase.
After your offer has been accepted, contact HomePromise to start loan processing. A VA home appraisal will take place next.The appraiser will make sure the property must meet standards set by the VA. Some of these standards protect you from buying a home with problems.
Everything must check out for you to move on to the underwriting stage with HomePromise. Here, all of your financial information will be verified once again. When underwriting is done, you will receive approval.
Next, it’s time to close. This is when you sign the necessary paperwork and transfer the funds to the settlement agent.
Now you are officially a homeowner! However, working with the VA loan experts at HomePromise can reduce some of the tension and uncertainty.
The Closing Process
Closing on a home can be an exciting milestone. However, it can be overwhelming for first-time buyers. Taking the time to understand the process can help alleviate the stress of closing.
The closing is where all the final paperwork is signed and ownership of the property is transferred to you.
HomePromise will provide you with a Closing Disclosure before the closing day so you can review costs and loan terms one more time. This document outlines all the costs involved in the loan and shows your loan amount, interest rate, loan term and projected closing date. Make sure to review this document carefully so there are no surprises on closing day.
On the day of closing, bring two forms of identification and any additional documents your lender may have requested. Your settlement agent will likely require a certified or cashier’s check for any remaining funds due at closing. Often you may also wire funds for closing.
During the actual signing, take your time reading through each document, and don’t hesitate to ask questions if something isn’t clear. Once everything has been signed and approved, congratulations!
After signing, there may still be some post-closing tasks such as transferring utilities and correcting documents signed at closing, if any. But now you can celebrate owning your very own piece of real estate!
Things to Consider When Buying a Home for The First Time
Veterans have many benefits. There are a few things to consider when buying a home for the first time. For example, are you financially ready for homeownership?
Make sure you take the time needed to save enough money for closing costs. Consider the monthly mortgage payments and any possible repairs or maintenance costs too.
Note that closing costs may be paid by the seller or builder. You should find out more about who pays the closing costs on VA loans.
Buying a home for the first time as a veteran or active military member can seem overwhelming at first. Taking advantage of VA loans can be a cost saving and simple experience when buying your first home.
Consider your budget when making decisions. Work with the VA loan experts at HomePromise at 800-720-0250. They understand the unique challenges facing veterans and active duty service members.
VA loans require no down payment and have competitive interest rates. This presents veterans with the ability to buy a home without spending a lot.
VA Debt Consolidation Loans & Military Debt Consolidation
Even with the best of intentions, bills can start to pile up. From unexpected medical bills to high interest credit cards, debt can happen to anyone. Other expenses like college tuition, delinquent taxes, and second mortgages can also cause financial stress. For veterans and military families currently experiencing financial difficulties, VA military debt consolidation loans can help.