The VA loan offers some of the best mortgage perks to its eligible borrowers. Specifically catering to the needs of America’s military service members, national guards, and reservists, on active duty or veterans, VA loans provide 100 percent financing, with no mortgage insurance and very lenient underwriting requirements. Unfortunately, some running myths and misconceptions about the program have been preventing those who would have benefited from their guarantees.
If you’re looking at a VA loan as a financing option whether to purchase or refinance an existing home, expert tips about how to maximize the benefit of the program can go a long way in helping you successfully get a VA loan.
Here, we have outlined these most important tips from the industry’s most reputed professionals.Check today’s rates!
Find a good realtor
Find someone who is interested in your needs beyond what you can manage to spend. Although getting a VA loan does not differ significantly from getting a conventional financing program, those who have previous experiences with the program can give you a better perspective on what works and what doesn’t.
A good realtor is a real estate professional who will take the time to know you beyond the figures. A good realtor pulls you out of the statistic and seeks to deliver custom professional services toward the best ends.
A good realtor will not only serve as your provider of market information, he or she can also help you understand the entirety of the financing process so you can make better decisions regarding your own unique situation.
Furthermore, a good realtor will be an efficient representative on your behalf when it comes to negotiating deals with a buyer or a seller.
Take your time
If you really want to find the best deal for your home purchase, it’s wise to take the time to shop for a home you really want. If you’re lucky, you’ll find one within your budget range right off the bat. But there are factors that might make that process more complicated if you buy a home today.
For starters, expect competition. Because of the continued scarcity in available housing units, chances are there will be multiple offers on a single home especially in hot markets. These markets are usually big coastal cities or urban centers. If you find yourself vying with rivals for a property you are interested in, you might have to participate in a bid war. In which case, you must have a strong arsenal. If you can’t pay with cash, most likely you’re going to use a mortgage to finance the home. If so, it helps to get pre-approved for a home loan. Why?
- Because it helps you determine the range of how much you can afford; and
- Because it gives the seller the impression that you are serious with your intention to purchase the home.
Maximize technological tools
The mortgage industry is slowly transitioning into the digital space, albeit with some assimilatory difficulties. Along with this shift is the burgeoning of softwares and new hardwares that make the conventional real estate shopping experience a lot less time consuming and way easier than the conventional way of doing things.
When it comes to listings, there are plenty of online tools you can use to filter searches by criminality records, walkability, size, etc. If you want to have an ocular visit of the house without being present, you can ask your realtor to do a live video stream session to show the property and its features. If you want to apply for a mortgage online, various lenders nowadays have already started adapting platforms that can accommodate online lending. New limits are indeed set in place.
Speak with your realtor about which tools are more reliable to use in terms of communications, shopping, rate checking, etc. This will help you go beyond the limits of traditional home or mortgage shopping.
Pay attention to the financing details
Sometimes, we focus too much on what could be rather than what can be. The devil is the in the details. Before you go further in inspecting an interesting property, check first if the seller is putting a specific financing requirement. If you miss this, you place yourself at risk of dwelling too much on a property that you will not be able to have after all.
Some sellers may not accept some financing programs. Others may opt for buyers who pay in cash. Or it could be that the fixer-upper you really like might not pass the minimum property standards set by the Department of Veterans Affairs. Always consult with your realtor to evaluate whether a property is worth pursuing based on the program’s requirements and limitations as well as the seller’s concessions or specifications.Click to See the Latest Mortgage Rates»