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Tags: finance, va loans, va guaranteed home loan
 So you've just returned from a tour of duty in the military and are thinking of having a family and building a home for the future. But unless you happen to be one of the richest men on earth you and I both know that the only way to get the home of your dreams is to get a loan.
As a former military man you just may be eligible for a low interest VA Guaranteed Home Loan courtesy of the US Government. Now don’t go rushing off applying for a VA home loan and expect to move into you dream home just like that. This is a loan for military personnel and veterans after all so there are steps that one needs to go through in order to get one.
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Channels son, you have to go through channels. First off, the government needs to see if you are even eligible for the VA Guaranteed Home Loan. To determine your eligibility, be you a veteran, a reservist, or on active duty, you need to fill up the Department of Veteran Affair’s VA Form 26-1880.
They will then check your length and type of service and once they’ve done that they will then issue you a Certificate of Eligibility which would show that you are entitled to a VA home loan. While waiting for the certificate the next step that you need to do would be to start looking for the home you want to purchase.
In looking for a home you can go through state licensed realtors who can go over your options in terms of pricing, location, explain the legal requirements, and negotiate the sale between you and the seller. They can also recommend lenders in the area that they have worked with as well as certified home inspectors.
When signing a sales contract be sure that the sale is contingent upon you obtaining a VA home loan. However, it is recommended that you follow the next step first before doing that so you have an idea of the amount that you are pre-approved for. The third step of finding a VA home loan lender needs some prudence on your part.
The VA home loan is not given by the government but rather by private lenders as banks, savings & loan type institutions, and/or mortgage companies that work with the VA. The government merely safeguards the lender against any loss that they may incur should you, your spouse, or any subsequent owner default on the original loan.
And while the Certificate of Eligibility entitles you to a loan you are not guaranteed of getting one. Lenders still go through the whole lending process using their own lending policies as well as the VA’s income and credit standards. Simply put, a lender is not compelled to give a loan out to you if they feel you are not eligible regardless of the VA home loan guarantee.
When searching for a lender for your VA home loan do comparison shopping between lenders to find one that offers you the best combination of interest rates, discount points and other such that would be advantageous to you in the long run. Once you have a lender, give them your Certificate of Eligibility and let them proceed with the application of your VA home loan.
This includes getting an appraisal for the home that you will be purchasing. The appraisal will let the lender and VA know whether the property would be adequate collateral for the requested VA home loan. Once approved you and your spouse just need to go to the loan closing to sign all the notes, mortgage papers, and other related requirements after which just move in to your new home.
Remember that in return for your honorable military service, the government is guaranteeing your trustworthiness to repay this VA home loan. You are entitled to this guarantee so take it.
About the author
The author of this article Rick Goldfeller is a successful underground Financial Analyst who has been advising and coaching individuals for many years. Rick recently published a book on how to manage your money and attract Wealth and Financial Freedom. More info on his Finance Planning course is available HERE.
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