Monday Market Myth: VA Loan

Myth: A VA loan is a difficult loan in the home purchasing process.

False: VA loans are typically like other home loans and many Veterans, guards, reserves, military spouses, and active duty military are not taking advantage of their 100% home loan financing option.  As a way to give thanks, the government backed loans make homeownership easily accessible without needing a down payment.  Follow these easy steps to living the American Dream

    1. See if you are eligible-click here to view eligibility requirements)
    2. Get pre-approved with a VA approved lender-Even though a lender offers a VA loan, buyers should still shop around for the best rate and terms.  For lending assistance email Connie Boyd with Western Bancorp at cboyd@westernbancorp.com and tell her Kristen sent you.
    3. Start the home searching process-Use an educated Realtor who knows the VA process to make a transaction successful. In San Benito County the maximum VA loan amount is $843,750, so any home value over that loan amount the applicant must pay.
    4. Get an accepted offer-After finding a perfect home, write an offer at fair market value to make sure the VA appraisal comes in at value.  Some markets are highly competitive, and a over bidding process might occur.  The seller may accept the highest and best offer, which means the winner may be paying more than the appraised value.
    5. Underwriter approval-Based off the Veterans application, credit score, income, and loan approval, the lender has the final sign off on the loan.  Sometimes a lender has mandatory conditions to fund a loan, so a buyer must be ready to provide any documentation needed.  It does not end until keys are in the hands.
    6. Closing Costs-Although the loan is 100% financed, the buyer still has to come in with some funds in order to close the loan.  The lender has a list of fees the buyer can and cannot pay.   It is best not to be surprised at sign-off that additional funds are needed.
Nothing out of the ordinary for VA loans in the home buying process, just another way to give memories a home.


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