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 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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