Part of my job as a realtor at Fort Hood is to help buyers find financing for their new homes. And since we are in a military market, we often discuss financing that Fort Hood real estate purhase with a VA Loan.
One of the best benefits of the VA Guaranteed Home Loan is that you can purchase your home with no money down. Most buyers know this about the loan program, but there's also plenty of mis- information floating around out there, too.
Sometimes it feels like its harder to get the facts about VA loans than it is to get a security clearance!
Some common misconceptions buyers often bring up during our search for financing:
VA Loan Myths
- I have to apply to VA for my VA loan
- I am already APPROVED for a VA loan since I am active duty military
- VA Loans can take 90 days to close
- I must have my Certificate of Eligibility in hand
- VA Inspects the home for defects before I buy the house
Here's a quick clarification of these points about VA loans:
I have to apply to VA for a VA Loan - Not True!
You apply for a VA loan through a lender who is approved by VA to originate and underwrite VA loans. You are free to pick your own lender. VA does NOT make loans. They only guarantee the loan in case you default on your payments. They will repay 25% of your loan to your lender if you go into foreclosure.
I am already APPROVED for a VA Loan - Not True!
Just because you are eligible for a VA loan does not, unfortunately, mean you will be APPROVED for a VA loan. You must meet the lender's credit requirements and the debt to income ratios as determined by VA. Keep your credit as clean as possible if you are thinking of buying a home in the future! Also, if one lender turns you down, talk to another one. Some are more conservative than others. The term VA Guaranteed Loan means that VA guarantees that the lender will be reimbursed part of your loan funds if you default on your loan.
VA Loans can take 90 Days to Close - Not True!
In the local Fort Hood market, we are blessed with highly experienced lenders who can close your VA guaranteed home loan in two - three weeks. Lenders with less experience with VA loans will often take 45-60 days to close a VA loan. You are always free to use any lender you desire, but sellers will often not accept offers from buyers using lenders outside the area because of the possibility of delays in closing.
I have to have my Certificate of Eligibility in hand before I can look for a house or apply for a loan - Not True!
Lenders can request your certificate through an automated system if you do not have your certificate yet. Don't let the lack of your certificate stand in the way of applying for a home loan or looking for a new home. The certificate is the document that shows you are entitled to the VA loan benefit. It can be ordered any time after you find your new home here in Killeen, Copperas Cove or Harker Heights.
VA Inspects the Home I Buy to be Sure it is Free of Defects - Not True
VA does not inspect your Fort Hood home in detail. Your lender contracts with a VA approved appraiser who will look over the property to determine a value for the home. This is not a home inspection. If you would like an inspection of the systems of the home, contact a licensed home inspector! (Always a good idea!)
So there you go! If you have any other questions about VA loans, let me know and I'll add them to this list! Now, go and inform your friends about VA loans. I think they have a need to know!
For more authoritative information about VA loans, take a look at the VA Website.
email anytime if you need help buying a home or selling Fort Hood Real Estate in the Killeen Fort Hood area!
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