7 VA Loan Tips for Homebuyers in 2021
VA loans are special mortgage loans available to service members, veterans and eligible surviving spouses. They’re the ones that set the qualifying standards, dictate the terms of the mortgages and guarantee a portion of the loan, but stop short of providing the actual financing. VA home loans are instead issued by private lenders such as banks and mortgage companies.
This program provides a unique set of benefits for qualifying service members, veterans and surviving spouses, including $0 down payment, low interest rates and closing costs, and the ability to forgo private mortgage insurance (pmi), just to name a few. Over 1.2 million homes were purchased with VA loans in 2020 alone–a record number since the program initially launched back in 1944. Since then, VA loans have garnered the unfair reputation for being a hassle. Things like “the application process is complicated”, “they take longer to close than conventional loans”, and “the VA is a mess” are all too common to hear.
This is perhaps understandable, given the government’s less-than-stellar reputation on veteran assistance programs. However, we found that this one in particular mostly lives up to the hype. In fact, for many of those who qualify, it’s often the only way they can manage to buy a house. This is why the team at Money.com created a list of 7 tips for veterans to be aware of if they are looking into buying their dream home in 2021!
Here are the main takeaways:
- Get started without the Certificate of Eligibility (COE)
- Your credit score still matters!
- Check in with your savings
- Get pre-approved by a VA lender
- Hire a real estate agent!
- Choose a properties that are VA-approved
- When you’re ready to move in CLOSE!