One of the best ways veterans can be honored for their service is through the ability to use their benefits to purchase a home for themselves and their families.
Why get a VA loan?
Following are 5 benefits of VA home loans:
You don’t need a down payment
A minimum of at least 3% is typically required for most loan programs. Not so for veterans. A VA loan requires no down payment…at all…saving veterans years of saving for a down payment.
You don’t need mortgage insurance
Other loan types require mortgage insurance if you put down less than 20%, adding hundreds of dollars to their mortgage payments.
In some cases, even a large down payment won’t prevent borrowers from paying mortgage insurance on top of their regular monthly loan payments.
A VA loan requires absolutely no mortgage insurance.
Some credit dings are ok
If you want a conventional loan and have some issues with your credit, you probably won’t get financing. Credit score minimums for VA loans aren’t as stringent as with other types of loan products.
VA loan interest rates are typically lower
Rates on VA loans are usually about 0.25% lower than the rates on conventional loans, which means a veteran can end up paying much less in interest over the life of the loan.
Lower closing costs
VA loans come with a limit on how much can be charged for loan fees, which protects veterans from overpaying on their closing costs.
Other home buying tips that can save veterans money when shopping for a home loan:
#1 You can start the process without a Certificate of Eligibility (COE)
You don’t have to have your VA COE to get started. Lenders can typically get this document on your behalf or if you want to obtain one yourself, you can do so by using the VA’s eBenefits portal.
Bottom line though, you can get the ball rolling without having your COE in hand, so don’t let that stop you from starting the process.
#2 Your VA benefits are not “single use”
You can use your VA benefits for the rest of your life…no matter how many times you obtain financing. It’s even possible to have more than one active VA loan at a time.
In fact, even if you defaulted on a previous VA loan it may be possible to get another one.
#3 Stick with your budget
You don’t have to borrow the maximum VA loan amount you’re pre-approved for.
In fact, it’s smart to borrow much less, to make sure you have enough money for any new expenses which come your way.
#4 Find an approved Reno VA loan lender and agent
Not every lender or real estate agent understands the features and benefits of the VA loan program. That’s why it’s important to find an agent and approved Reno VA loan lender when you decide to shop for a home.
Lenders who work with veterans understand VA loans inside and out. It’s part of their jobs to understand any potential changes to the 2017 VA loan requirements, so you can be assured that an approved Reno VA loan lender will help get the right loan for you.
Agents who are familiar with the stipulations the VA has set for acceptable properties will be able to steer you away from homes that may cause a problem with your VA loan application.
This can save you both time and money and make your home buying process much more enjoyable…as it should be!
#5 You will need money to get started
While it’s not uncommon for sellers to pay all of a veteran’s closing costs, you will need to have money set aside to cover expenses when you first find a property.
Expenses you’ll incur include:
- earnest money deposit – shows your intent to the seller to buy the home
- appraisal – the appraiser will need funds to do his job
- home inspection – to be sure there are no major problems with the home
Note: You may get all of your money back when you close on the home.
As a veteran, you sacrificed so much in serving your country…now it’s time to let your country help you!
Yankov Mortgage is proud to be an approved Reno VA loan lender, and we’d be honored to help you secure the finance for your perfect home.
Contact us to find out more!