Purchasing a Home with VA Benefits Guide
Courtesy of Heidi Herda Real Estate, 612.807.4858 - http://HomesSoldByHeidi.com
Purchasing a first home is an exciting milestone in any person's life. For some, the process may also seem very intimidating. That's why our representatives are available 24/7 to help guide home buyers and answer any questions they may have. Please don't hesitate to give us a call at 612.807.4858.
How Much Home Can I Afford?
Typically, the first question would-be home buyers ask themselves is, "What can I afford?" There are many factors that determine what a reasonable mortgage payment should be for an individual, including annual income, existing debt payments, down payment (if any), as well as additional costs like homeowners insurance and housing association fees. Your local Credit Union provides a handy Loan Resources and Payment Calculator to help home buyers find a monthly payment that's comfortable for them. Keep in mind, the amount you are qualified for should not always be the amount you use to purchase your first home. A comfortable loan amount will equate to a comfortable monthly payment.
What Type of Loan Should I Get?
There are many financing options available for home buyers out there, each with their own unique advantages. For most veteran and active duty military members, we at RBCU highly recommend speaking with a qualified VA lender to go through all the benefits of a VA loan and how that compares to your unique situation.
Advantages of a Typical VA Loan:
No Down Payment Necessary.Home buyers will usually need at least a 5 percent down payment for conventional loans or a 3.5 percent down payment for FHA financing. On a $200,000 loan, that's $10,000 for conventional borrowers and $7,000 for FHA. For many first-time home buyers, coming up with that kind of cash up front can be challenging. Being able to purchase with $0 down means VA borrowers don't have to spend years saving to scrape together a big down payment.
Less Stringent Qualifications.Many first-time home buyers might not yet have a strong credit history, which can make it more difficult to get approval for a mortgage or qualify for an affordable interest rate. Since the VA Loan is government-backed, VA Loans are easier to qualify for at competitive rates.
Lower Monthly Payments.Since VA Loans don't require the added monthly expense of private mortgage insurance (PMI), they tend to leave more money in your pocket each month. In addition, the competitive VA Loan rates can save a typical buyer thousands over the lifespan of the loan.
In addition to the VA Loan, RBCU also offers several other financing options for homebuyers; including USDA loans, FHA loans, and traditional mortgages.
The first step toward securing your loan is getting pre-approved. This involves a pre-qualification process, where a loan officer assesses your financial situation, reviews your debt as it relates to your income, reviews credit and determines a qualifying amount for your loan, and is followed by the home buyer submitting a completed loan application to the lender for approval. RBCU offers two ways to begin this process: You may either call us directly at 612-798-7100, or you can fill out our VA Loan inquiry form online.
Finding a Real Estate Agent
When using a VA Loan, it's important to find a real estate agent that not only knows the intricacies of the VA Benefit Program, but also understands the specific needs of veterans and active duty military members. I have helped many Veterans within the local Twin Cities Real Estate market, and I would be honored to help you as well! You may connect with me directly at 612.807.4858.