If you're a veteran looking to own a home, there are numerous advantages to using the VA loan program offered to you. The program, run by the United States Department of Veteran Affairs, has assisted 22 million veterans in buying home since it was founded in 1944. Around 707,107 of these loans were given in 2016 alone.
This VA loan has many benefits, such as the fact it requires no money down, has no monthly mortgage insurance requirement, and gives you the ability to refinance existing loans, even if they're not a VA loan.
If you're looking to get one of these vet home loans, you should know a few tips in order to take full advantage of the VA loan program. Here are a few helpful things for you to know:
You Should Check Your Credit
Over 70% of credit reports in America have some form of credit error. Your lender will look at this report and make a decision based on the information it contains. You should get your credit information from all three major credit bureaus to make sure that you have the most accurate information possible. Each of these bureaus might have a different report to give. Something that's relatively minor to you might not be so minor to a lender.
Consider Getting Preapproved
Before you get started on the house hunting, you should get approved for your VA loan amount. This can save you a lot of time and will give you an idea of how much you can spend once you start house hunting. In a tight housing market, this can also set you apart in the seller's mind, as many other buyers don't take this step.
Pick a Fixed Or Adjusted Rate Loan
You should look at these options carefully and pick the one that seems right for you. Chances are you'll be getting your VA loan from the same place others get non-VA home loans from. Therefore, it doesn't hurt to shop around. A fixed rate loan, negotiated with the lender, can be a good choice, but an adjustable rate loan can also be beneficial.
The best advice you can get is to do your homework, find the best rate for you, and don't take the first offer you get. That's a big mistake that many first-time buyers make.
If you're considering buying a home, the VA loan and the VA loan program in general is a great option that more service members should take advantage of. It can allow you to get you the home you want at a good price, thus saving you money in the end.