When it comes to mortgages, you want to know all of your options. And if you’re a veteran, you especially want to know about VA loan, this is the loan that is going to help you secure your dream home. The unfortunate thing is that many borrowers are unaware of what the VA loan even is, and those who are aware of it don’t know how it works. The reality is that there are tons of people who could get this kind of loan who do not. Our team at Ace Mortgage Loan Corp. wants you to know about all of your options. Even if you decide not to go with the VA loan, it’s still nice to know you considered all of your options before choosing what is best for you. No matter what your understanding of the loan is and how it works, we’re here to give you a refresher or to teach you something entirely new. Let’s dive in!
What is a VA Loan?
Let’s start with the basics. A VA loan is a mortgage option for borrowers who are veterans. The loan is a $0-down option that is provided by private lenders and partly by the Department of Veteran Affairs, VA. This kind of loan isn’t just for those looking to buy a home, though; it’s also for those who want to refinance their mortgage. It works by the Department of Veteran Affairs backing part of the loan. This backing gives private lenders the ability to offer the $0-down option as they have more confidence in the borrower as the VA is helping them. The VA’s help also gives the lenders the ability to provide beneficial terms and rates to the veteran looking to purchase a home. All in all, everyone in the situation wins.
What are the Benefits of the VA Loan?
The main benefits of the loan are the $0-down option and the bonus perks that come with the VA backing part of the loan. But that’s not all. Service members who are bankrupt or have a history of foreclosure can get a VA loan. You also do not need to have a perfect credit score, making the process less stressful as a whole. There is also no limit on how much you can borrow from the lender with the VA loan. If the lender estimates you can get a home that is worth $1 million, you can borrow the whole $1 million.
What Does the Process Look Like?
Now, the process isn’t too different from what people pursuing other loans go through. The big difference here is the advantages that the veterans get for going with the VA loan.
First, you are going to need to get prequalified from a VA lender. Then, the lender will take a look at your credit score, your assets, if you’re working, all of those key factors, to determine what your budget is for a home. Then you can move on to the pre-approval step. Getting pre-approved will be an advantage when you go to look at houses. Not only will you look serious, but you also will have a competitive advantage against anyone else looking at the same homes as you. Once you find the perfect home in your budget, you can put an offer down. During this time, you are going to want to stay in close contact with your VA loan agent. If the seller likes your offer, you will go under contract and have the home appraised by a VA representative to ensure it meets all of the VA’s standards. If everything checks out, you get the all-clear to close. During this last but not least step, you are going to sign a bunch of contracts and legal documents, then officially close on the home. You’ll get the keys to the house and have a brand new place to call home.
Contact Us Today!
If you are a veteran looking to refinance your mortgage or purchase a new home, you may want to consider a VA loan. There are many benefits to it, and the process isn’t anything different than the usual home loan process. To learn more about VA loans and how you get started on one, reach out to our team at Ace Mortgage Loan Corp. today at (954) 777-4774. Our team is looking forward to assisting you!