The guarantee that the government provides will enable you to buy a house even if you do not have sufficient down payment to pay for it. You will also not be required to get a Private Mortgage Insurance.
Since the down payment is no longer necessary, you can immediately stop wasting your money on rent and proceed to buy a home of your own. As a member of the military, this is a privilege that you should grab so you and your family can securely live in your own house.
Steps to buy a home through a VA Loan
Step 1: Get a pre-approval
It is important to get a pre-qualification before you start looking for a property to buy.
Step 2: Request for a Certificate of Eligibility
Also referred to as the COE, this will help confirm that you are in the military service and thus eligible to use a VA Loan to buy a house. While it is possible for the lender to get this for you, getting it yourself will help expedite the process.
Step 3: Look for a lender
When looking for a lender, make sure that they accept VA loans. Not only that, you should look into more than one lender. That way, you can compare prices and see which ones will give you the best deal.
Step 4: Start looking for a home
At this point, you should have an idea how much you can afford to buy a home. This will help you narrow your search. Look for a trustworthy real estate agent to help you find the home that fits your budget.
Step 5: Review and sign the home purchase agreement
After finding the home and agreeing to the price, you should look into the home purchase agreement and review it carefully. This document should have a VA option clause. This clause means you are not legally bound to buy the home if the VA appraisal is lower than the asking price of the seller.
Step 6: Arrange for a VA appraisal
Get in touch with a VA-certified appraiser so they can determine the fair market value of the property you want to buy. The property has to meet the Minimum Property Requirement of the VA for it to be eligible for a VA Loan.
Step 7: Schedule a home inspection
This is different from the VA appraiser. Make sure the home you will buy is in good condition. Get a professional home inspector to check the structure of the house and the condition of the electrical, heating, cooling, and plumbing systems. This can be a good negotiating point in case you find any defects.
Step 8: Sign the closing documents
This mean everything is in order and that you and the seller agree to the terms of the home buying process. You need to sign the closing documents and the lender will proceed to pay the seller the amount of the VA Loan that was approved.