If you are a veteran, you have access to loans that other borrowers do not have access to through veteran mortgage companies. However, while there are advantages to obtaining a veteran mortgage, you will be on the road to success if you avoid these common mistakes.
1. Understand the Restrictions
VA loans can be very flexible. However, they often have property restrictions put in place that are very strict and exist to protect both you and the home seller. Your mortgage lender will likely give you a document that is relatively long, but reading it will help you choose the property you want to purchase.
2. Make Sure the Property is Eligible for a VA Loan
Oftentimes, a veteran will attempt to purchase a condo and find out that it is not eligible for a VA loan. You don't want to waste your time and fall in love with a home that you won't even be able to purchase. Contact a veteran mortgage company to find out if the condo you are interested in is eligible.
3. Know the Closing Costs
A veteran loan will help you keep your costs low. However, you will still want to take into account closing costs. Talk to your lender so you can budget for these closing costs and make sure your loan can cover any additional expenses related to buying a home.
4. Choose Real Estate Agent Who Knows About Veteran Loans
A real estate agent who has experience working with a veteran mortgage company will be better able to understand the nuances of the loan and the benefits you will receive by having a VA loan. This type of real estate agent will be able to make the process much smoother.
5. Receive an Inspection
You will receive a VA appraisal. However, this is not a substitute for a home inspection. You will need to have the house you want to buy inspected before receiving the loan. The inspection will inform you of whether your house needs any repairs or renovations done before you move in.
6. Learn About the VA Funding Fee
By obtaining a VA mortgage, you will not have to make a down payment or obtain mortgage insurance. However, you will be required to pay a VA funding fee. This fee does not have to be paid upfront and will instead be rolled into your mortgage. However, this fee will increase your monthly payments. But once you take each of these steps, you can enjoy the benefits of a VA mortgage.
For more information, contact a veteran mortgage company, such as MHS Lending, to learn more.Share