How Do I Apply For A VA Loan ?
| VA loans are mortgage home loans that have been designed with the objective of providing long-term home financing to eligible American veterans or their surviving spouses. These loans are guaranteed by the U.S. Department of Veterans Affairs and are provided by certified lenders at a very low interest rate. |
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A major advantage of VA loans is that borrowers are not required to make any down payment.
In order to apply for a VA home loan, the foremost requirement is to have a Certificate of Eligibility. In case, the applicant does not have one, he/she needs to fill and submit Form 26-1880 requesting for a Certificate of Eligibility. This application has to be submitted in the local VA Eligibility Center along with the copy of service discharge papers. These papers should indicate the period of active service duty since September 16, 1940 and also the type of discharge. VA home loans are provided only to individuals who have been honorably discharged from service.
The next thing is to select a suitable home and sign a purchase agreement with the seller. In order to determine the VA loan amount, it is important to get the home appraisal done by a VA-certified home appraiser. One can request an appraisal from the VA by calling the nearest VA center. Once appraisal is done, the borrower can now apply for a VA home loan from any of the certified VA home loan lenders. Loan amount is determined based on the credit history of the borrower and also the appraisal report. Finally, close the transaction by paying the required closing costs.
In order to be eligible for a VA home loan, one important point to remember is that the applicant must have a good credit rating and have an income that is sufficient to support mortgage payments. It is important that the applicant be the primary resident of the property.
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