Why Now Is The Best Time For Veterans To Buy A Home
Buying a home is a big decision and can be stressful. You need to consider price, location, and nearby schools. And how about getting a mortgage? That can add to the pressure.
Luckily, as a Veteran, you may qualify for a VA-backed loan, which can relieve some of the stress. The housing market is changing to a Buyer’s market so now is a great time for Veterans to buy a home!
It is important to know what a Buyer’s market is. This article will explain that and give you tips on buying a home with a VA loan.
What Is A Buyer’s Market?
A Buyer’s market happens when real estate prices are on a decline, and houses linger for longer on the market. To make the sale, the prices of homes are reduced and sellers tend to become more flexible during negotiations.
For the following reasons, it is a buyer’s market now:
- Low Price of Homes
When you carefully check recent sales made by real estate companies, you will discover that more homes have been selling below the asking price. Any home seller determined to stick to a higher price finds buyers choosing a different home with a seller who has some price flexibility.
- Home Time on Market
Lately, homes have been on the market for longer before being sold. This strongly indicates that it is a Buyer’s market now, and every Veteran that has met the VA loan requirements should take advantage of this market.
- Home Inventory
The larger the inventory is, the more likely it is to be a Buyer’s market. We are currently in a market where home inventories are going up, so the list of homes for sale is growing longer. This is another clear indication of a Buyer’s market.
You Have An Advantage As A Veteran!
A VA loan is a home loan benefit with a zero down payment option given to eligible active service members, veterans, or their surviving spouses. VA Loans are guaranteed by the United States Department of Veteran Affairs (VA) and are provided by private lenders like HomePromise.
Also, a VA loan has a low-interest fixed rate, low credit score requirements, no monthly mortgage insurance, and lower income requirements. These features give the Veteran an advantage over conventional borrowers.
How To Save On Rates With A 30-Year Mortgage
The 30-year mortgage is one of the friendliest methods of buying homes. This is because this loan option gives buyers a steady monthly payment due to a fixed rate. Adjustable rate mortgages (ARMs) may have rates that go up in the future and that is a risk most Veterans should probably avoid.
Here are some tips to pay off your mortgage faster and save money on interest over the long term.
- Bi-Weekly Payment
Most 30-year mortgage home buyers tend to make just the minimum monthly payments. This might seem convenient, but it doesn’t help you save money. It only prolongs your mortgage payment time frame.
Making payments every other week helps you save money on your home loan. This is called a bi-weekly payment plan. On a bi-weekly payment plan, by the end of each year, you will have made a full extra payment on your loan. HomePromise offers a money-saving bi-weekly payment program. Call today at 800-720-0250 for more information.
- Redirect your Extra Cash into your Mortgage
You can channel the extra cash you may have at different times of the year toward paying off your mortgage. Doing this even occasionally might seem insignificant, but when you calculate how much interest you save, you’ll find that it has a big impact over the long term. VA borrowers should consider using gifts, bonuses from work, tax refunds, and inheritances as ways to pay down a mortgage and save money.
Find a Flexible VA Lender
Many Veterans find it difficult to get a VA-backed home loan because they know little about VA loan requirements. Also, some lenders make it hard to get a VA loan and add extra guidelines to the VA loan program making it difficult for Veterans to access their home loan benefits.
You must have a VA loan entitlement to get a VA home loan. VA home loan entitlement is given to eligible active duty service members, Veterans, or their surviving spouses.
Some Veterans don’t have full entitlement because of the following:
- You have not yet refinanced or sold a property that you previously financed with a VA home loan.
- You used your VA home loan benefit but had a foreclosure or short sale and part of your entitlement is tied up in that loan.
The rules are complicated and getting advice from a VA loan expert is very important to figure out your entitlement. HomePromise will help you get your VA Certificate of Eligibility (COE) which will show if you have VA-backed home loan eligibility without limits. The basic requirements for VA loan eligibility are one of the following:
- You must have completed 90 days of active service duty.
- You must have served actively on duty for a minimum of 181 days during Peacetime.
- You must have a minimum of 6 creditable years of service in the National or Reserve Guard
- You must be a surviving spouse of a service member who died on active duty or from a service-connected disability.
Other Qualifications include
- You were honorably discharged.
- You were discharged on medical grounds or a service-connected disability
- You were discharged for hardship, for the convenience of the government, early out, or for a reduction in force.
Call HomePromise at 800-720-0250 today and our VA loan experts will order your VA Certificate of Eligibility (COE). We can often get your COE from the Veteran’s Administration on the same day!
Can I Qualify For A VA Loan?
Qualifying for a VA-backed home loan is the first step for Veterans who want to use their home loan benefit. To have the best chance of qualifying you should choose a flexible VA lender who has experience with the process.
Most lenders will use a minimum credit score for a VA loan. Often their minimum is 620, 640, or even higher. HomePromise has a minimum credit score for VA loans of only 580. Call today to see if you qualify at 800-720-0250.
How To Get A Low Origination Fee
An origination fee is a fee you pay to your lender to process your loan application. Not all VA lenders have the same origination fee. Lenders decide the size of their origination fee and the difference between lenders can be huge.
VA lenders charge you for their services which include:
- Sourcing and organizing your documents
- Verifying the documents you provide
- Analyzing your income
- Verifying information from employers
The time needed to do these loan processing steps can amount to a lot in salaries and overhead. However, you can get a low origination fee by picking the right lender. At HomePromise, we have an origination fee that is lower than most VA lenders. At only $590, the HomePromise origination fee is often thousands less than others.
You can save a lot of money by purchasing a home right now because it is a Buyers’ market. Using a VA loan to purchase a home can give you an advantage over conventional buyers. HomePromise is a flexible VA lender. Our VA loan experts can explain the requirements while offering a low minimum credit score and low origination fees. Call 800-720-0250 to talk to a HomePromise VA loan expert today!
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.