How to use your VA benefit to purchase a new home.
If you’re a veteran, you understand it takes planning and preparation to do your job and that is the same with buying a home. If you’re ready to realize the American dream of home ownership, we can help you understand your VA Loan eligibility, benefits, rates and more. Here are some tips to get you started on your homebuying journey.
- Check your credit score. Even before you start the homebuying process, you should know your credit score. Check to make sure there are no errors or issues. Give yourself time to make any corrections if necessary. If it’s too low, you may want to take measures to help boost it higher. Even if your credit score is not ideal, you may still qualify.
- Get pre-approved. After you determine your eligibility, get pre-approved. Having that paper in hand helps to give you a sense of how much you can afford to pay for a home. A pre-approval also shows you are serious to real estate agents. It gives them something to work with to help you find the right home for your budget.
- Know your budget. One of the best benefits of a VA loan is that you don’t need to put money down. However, if you decide on the no down payment option, make sure you can pay the monthly mortgage, it will be higher than if you make a down payment. It’s a good idea to put some money down as it will reduce the amount you will pay in interest over the life of the loan.
- Understand the fees and costs. With every VA loan, there are closing costs of approximately 3% as well as the VA funding fee. In addition to figuring out your monthly payment, you can also roll any closing costs and fees into the loan. Technically, you don’t need to have cash on hand to buy a home with a VA loan. However, keep in mind that the more money you pay out of pocket, the lower your home loan will be. That means less interest, lower monthly payments and a savings over the life of the loan.
- Connect with a VA specialist. Not all mortgage companies understand VA loans. It’s important to find one who understands the VA process, can work to obtain your Certificate of Eligibility and will be with you every step of the way. Freedom Mortgage is that company. Contact us to connect with a VA loan specialist who understands veteran needs. Let us help make your dream home a reality.
Learn more about the home buying process.