Tag Archives: va loan

How To Increase Your Chances Of Getting A Home

 

Most people consider buying a home as a great accomplishment. But searching for properties can be nerve-racking, especially for aspiring homeowners. Aside from real estate mortgage rates, you also need to think about other factors such as your monthly bills as well as your existing debts. Which is why it’s essential to choose the right home loan for your dream home. But where do you start? Here are a few pointers to help you make the right choice and bring you one step closer to your ideal home.

Beef up your savings

Depending on your loan provider as well as your preferred type of loan, you’re required to make a down payment. It usually ranges from 2.25% to 20% of the price of the property. Allocating a budget for the down payment each month will help you save enough money to pay the down payment.

Know your options

There are several mortgage options that aspiring homeowners can choose. However, each has pros and cons, too. So, if you’re struggling to come up with enough funds to cover the down payment, then it’s best to check a few of your options. A few options for qualified applicants are conventional mortgages, Federal Housing Administration Loans, and Veterans Affairs Loans.

Check for state and local assistance options

Aside from federal assistance programs, several states offer financial help to first-time home buyers. These assistance programs often provide exciting benefits such as closing cost assistance, payment assistance, tax credits as well as discounted interest rates.

Know how much you can afford

Before you start your house hunting, it’s best to know the properties that are within your price range. Using a real estate mortgage calculator can help you determine how much you can afford to spend in a home.

Check your credit history

You should also try to check your credit score when applying for a home loan. Doing so will give you an idea of whether you’ll get approved or not. It’ll also help you understand the best loan terms that’ll fit your financial health.

Determining these factors can help you choose the mortgage plan for your dream home. Don’t hesitate to ask your mortgage provider for all possible mortgage options based on your financial situation.

 

 

Overcoming Misconceptions About VA Loans: How Veterans Can Land The Home Of Their Dreams

It may come as a surprise to many that veterans can and do experience difficulties when they begin the process of purchasing a home. With VA loan options allowing for a seemingly easy “in” to the home-owning experience, what is it that the general public is failing to understand veterans’ options? Below, we’ve covered why some veterans experience trouble when it comes time to purchase a home and the common fears that plague buyers and sellers alike.

Why Veterans Experience Difficulties Purchasing Homes

Post 9/11, the way that funds have been allocated to veterans looking to purchase homes looks a little different than it once did. Veterans receiving support in the housing market now tend to be resting on the margins of homelessness and homeownership. This has led to an ever-unstable “middle” section of veterans who manage to get by, but fail to leverage VA loans successfully.

Veterans are part of a demographic that’s slowly shifting towards a much younger age range. Young people don’t purchase homes– they rent. Toss in the diversity of the current pool of veterans, and you’re looking at a group of young men and women who are likely to be saddled with the consequences of intergenerational poverty. Veterans coming home from war today are paying for the 2008 housing crash and aren’t receiving targeted assistance.

Common Fears for Sellers and Buyers Regarding VA Loans

For sellers

Offers by veterans are frequently rejected due to the copious amounts of red tape that accompany VA loans. There are often appraisal delays, which drag out the amount of time sellers have to wait to close on properties, and sellers are responsible for bearing fees that would traditionally fall to buyers.

All too often, sellers are advised by agents to become almost discriminatory towards those with VA financing. These sellers are pushed to take cash and conventional offers in order to avoid the perceived “hassle” of dealing with VA loans.

For buyers

Understandably, many buyers today feel apprehensive entering the market with a VA loan. It’s no secret that sellers and agents are beginning to shy away from offers from veterans who are relying on VA loans to purchase homes; why would veterans feel confident?

Most veterans are hesitant to give up the benefits of a VA loan in favor of pursuing more conventional funding options. While they may have a better shot at landing a home with traditional financing, the financial advantages of VA loans are tough to overlook. This leaves many buyers feeling trapped between what’s best for them and what sellers will accept.

Three Misconceptions About VA Loans

Knowledge can empower both veterans and sellers

Concerns about red tape

As mentioned previously, numerous sellers fear the red tape that’s long been associated with VA loans. They don’t want to spend extra time or money trying to close a sale– but the fact of the matter is that most VA loans close within thirty to forty-five days. The program used to involve copious amounts of snail mail, but the process has become quicker and more efficient.

Borrower qualifications are too lax

Some sellers are apprehensive that veterans approved for VA loans may not actually be up to snuff. If they can qualify for the loan so easily, who’s to say they’re actually capable of paying for their home? But the VA’s no-down-payment benefit isn’t handed out like candy. Borrowers are still required to meet the certain debt, credit, and income requirements in order to receive financing.

Sellers are saddled with fees

It’s true that in some cases, sellers will need to pony up a little bit of cash to cover fees during a sale to a VA borrower, but this isn’t always true. The only fees that need to be paid by sellers are 1% origination fees, which don’t have to be charged anyway. Veterans are not permitted to pay these fees, but lenders, title companies, and sellers can all pay them.