Veterans Wishing To Purchase A Home In Grand Junction, Fruita, Palisade Or Grand Valley Area
If you are a Veteran and thinking of using a VA Home Loan, it is important to be pre-qualified through a local lender that is VA approved and has a solid performance for closing VA Loans. Pre-qualification quickly determines how much money a prospective home buyer will be eligible to borrow before a loan is applied for. When talking to a lender and completing the pre-qualification, you will need to let them know you have access to the VA home loan. Keep in mind, although many lenders can complete a VA home loan for you, not all lenders specialize in VA home loans. Using a VA specialized lender will ensure you are taking advantage of all the home loan benefits.
What Information Is Needed To Get Pre-Approved For The VA Home Loan?
- Full name of those that will be on the loan
- Date of birth
- Social Security Number
- The last two years work history
- Employer, or branch of service & pay-grade if active duty
- Where you have lived in the last two years
- Income (they can look this up if you are active duty)
- Assets, copies of bank statements, stocks and mutual funds
- Monthly debt for car payments, credit cards etc.
A VA home loan is a mortgage loan guaranteed by the U.S. Department of Veterans Affairs (VA), and helps eligible veterans purchase properties by supplying them with home financing. If you are a member of the military in good standing, you probably do or will qualify for the VA Home Loan.
VA loan is backed by the federal government, making it one of the only loans that requires no down payment. Additionally, banks do not require private mortgage insurance on VA loans, so monthly payments can be significantly lower. The qualification standards for a VA loan are very different. Because they are government backed, the bank assumes less risk and as long as military status is verified, the loans are easier to obtain.
In the past, a VA home loan would not let the VA buyer pay certain fees, leaving the seller to take care of more financial strain. Many sellers would not accept a VA loan. Those guidelines have been removed, so VA loan holders are having an easier time finding willing sellers. The fees are now locked up in the closing cost process, so the buyer handles it, but it's paid by the government.
When Can I Start Looking At Home And Make An Offer?
After completing the loan application, the lender will tell you if you are pre-approved and the amount you are eligible for. You and the lender will discuss what price range of home is within your monthly budget. This is important because you cannot look at homes until you know your price range.
Working with a real estate agent that has experience with VA Home Loans will save you a lot of time and trouble down the road.
Once the property is under contract, the VA appraiser is sent to inspect the property and appraise the value and condition. The appraiser will make note of items that need repair, and the seller is asked to take care of it. If the Seller does not, your real estate agent either requests that the seller credits those repairs (depending on how serious the problem is), or the buyer is required to make the repairs prior to closing. A few days before closing, the appraiser will go back to the property to certify that all repairs have been completed.
VA Home Loan Standards Are Different From Other Loans. Here Is A Guide To Help You Identify Potential Homes To Choose From
- No fixer-uppers, property must be in good condition.
- No exposed electrical wiring.
- Plumbing must be in working order with no missing fixtures.
- Kitchen must be intact, and have a stove, vent hood or microwave, sink and faucets. If the dishwasher has been removed, it must be replaced.
- Floors must be covered no exposed cement, subfloor or missing carpet.
- Bathrooms must be intact, no missing toilets, tubs or sinks.
- Windows cannot be broken or cracked and must open and close correctly.
- Swimming pools must be clean and equipment operational.
- No foundation issues, cracks, settling or water ponding.
- Roof must be in good condition, no missing shingles, damage or exposed areas.
- No chipped or peeling paint on the outside, porches, doors and trim or under the eaves.
- Water heater, heating and cooling system must be in good working order.
- HOA (Home Owner Associations) must be a VA approved community association.
If you have any questions or would like to speak to a local mortgage lender, please call Sandra (970) 261-1686.