Buying a home can be daunting. Increased regulations, as well as diligent screenings of applicants for mitigate risks, have made borrower requirements more stringent. With prospective home buyers having so many options these days, rigorous protocols have been enforced to ensure that borrowers are able to make mortgage payments on a monthly basis. Such guidelines take into consideration other debts owed by the borrower, criteria for acceptable amounts of a down payment, repayment and credit history rules, and debt-to-income ratio principles. All of these measures might be discouraging to someone applying for a mortgage. However, almost 22 million people have access to a zero-down-payment, less-demanding home loan alternative, via the VA (Veteran's Administration).

The VA home loan program is available for current and prior military service members who qualify. The VA doesn’t personally provide home loans for eligible applicants. Rather, it works with private lenders associated with the organization.

Eligibility Requirements Click Here

Most veteran, active duty, and reservist-service members of the National Guard and military are eligible for the VA home loan program. Spouses of service members who passed away during active duty (or because of a service-related disability) are also eligible. Active duty members can access the VA home loan program after six months of service. National Guard and reservist members without active duty or combat exposure must undergo a six-year waiting period before eligibility. Veterans who served during a period of war can access the VA mortgage program after 90 days of service. A VA home loan is only applicable for homes the borrower will reside in, such as condominiums, single-family units, certain multi-unit properties, and modular homes.

Once qualified, the applicant must provide a COE (Certificate of Eligibility). This certificate gives lenders the information required to determine whether an applicant qualifies for a VA home loan. To acquire a COE, borrowers must show evidence of eligibility, such as a recent state of service authorized by the commander of the service member's unit (or the personnel office), a DD Form 214, or a NGB Form 22. The evidence of eligibility can be used to apply for a COE either by regular mail, online, or directly through a VA-approved lender.

Finding a Lender Click Here

Even though several private mortgage lenders are available to potential home buyers, not all of them offer VA loans. Borrowers should check to see if a lender is VA-approved, since VA mortgages adhere to guidelines that slightly differ from most mortgage options. A VA-approved lender will be knowledgeable about the VA home loan process, and will be able to provide the borrower with VA mortgage options. Further, a VA-approved lender will have the intelligence and qualifications to explain the requirements and processes from beginning to end.

Pre-Qualification Click Here

Once a proper lender is secured by a borrower, the next step is the pre-qualification process. Pre-qualification determines the amount of the mortgage the borrower can afford based on their existing debts, credit history, and income. Though not mandatory to obtain a VA home loan, pre-qualification establishes a price rage for potential home buyers, narrowing down their property choices.

Searching for a Home Click Here

The borrower can search for a property pretty much anywhere in the U.S.A., with any real estate or buying agent, with no restrictions on features. The home obtained with the VA loan program must essentially be move-in ready, as well as pass several sanitation and safety requirements.

VA Home Loan Application

After a purchase agreement has been signed, the lender and the potential home buyer will complete the VA home loan application. The can be thorough, since borrowers are obligated to provide extensive details about their existing debts, current income, available assets, and credit history. Proof of income, via pay checks and tax returns, may be requested (2 months’ worth of pay stubs for employed individuals and 2 years’ worth of invoices and bank statements for those who are self-employed). Six months’ worth of bank statements may also be asked for. While all of these items are essential in determining eligibility for a VA home loan, the approval guidelines are not as stringent as the ones imposed on traditional mortgages.

Loan Processing

After the lender receives all that is necessary for a VA home loan application, the processing phase begins. The lender assesses the income and credit information the borrower has provided, and an inspection of the home is initiated. A VA assessment doesn’t make any promises about the home’s condition, but does estimate its fair market value (specifically on the date it was inspected). Both the financial analysis and the appraisal may take several days to complete, based on how prepared the borrower is, and when the home is available to be purchased.

Closing

The closing process is the last step in purchasing a property with a VA mortgage. Usually, a lender-selected title attorney, title-company, or company representative administers the closing meeting. Ownership of the property is signed over to the borrower, loan documents are finalized, and mortgage repayment plans are reviewed. Once the appropriate paperwork is signed, the home’s title is transferred into the name of the buyer, and the VA loan payment plans begin.

Working with Other Veterans Click Here
With all the recent advertisements about VA Home Loans many veterans get confused on where to start.  One of the best things you can do is work with a fellow veteran that understands the VA Loan Process.  At www.VeteranTony.com you get personalized help from a fellow veteran that understands the process, and more importantly knows how to get you direct lender credits that can save you thousands in fees! 

Most veterans will turn to institutional lenders simply because they have seen TV advertisements, and can end up paying more fees.  Even though these fees are not necessarily “out of pocket fees” they are still a part of the loan and can increase your monthly payment.  If you are the type of person that likes personalized attention and likes to save money then please visit   www.VeteranTony.com for help with your VA Loan.