Whether you are still serving your country or are retired, you should consider refinancing or buying a home. The mortgage rates keep on changing, and you can acquire a good one to help you buy your home. Since some homes these days are sold at discounted prices, service members should take advantage of this and buy homes as soon as they can. You need to have good credit and a stable income for you to obtain a good mortgage for a new home.
As a military member, you can access specific programs that can help you achieve this. The Veterans Affairs mortgage program is one of the most common American military loans that most people use. This program has a lot of benefits for service members as well as their families.
You can use a VA loan to buy a new house or refinance your mortgage. Feel free to make some necessary renovations so that you can boost the value of your home using the loan. You can also use it to install some things that can increase efficiency. Though getting a conventional loan is still an option, this is hard to achieve if you don’t have a credit score of more than 720. Since the government backs VA loans, they make it easy for a lot of service members to qualify for. The bank considers borrowers less risk and therefore offer better rates for VA loans.
Apart from getting low rates on VA loans, you can also benefit from this program in other ways. Being part of the program makes it easy to acquire the loan since your credit score is not the only thing that is used to determine your eligibility. Moreover, the VA program focuses on your credit history for only one year. This means that previous mistakes that you made some few years back may be overlooked when determining if you can qualify for the VA loan.
Unlike other mortgage loans, you don’t need down payment when applying for a VA mortgage loan. This means that you can save more money from the VA program compared to applying for a conventional mortgage which needs 20% as a down payment. If you have a service-related disability, the VA lender will not charge you funding fee, thus minimizing the closing costs even further.
The application process of a VA loan is also simple. You only need to choose the right lender that offers this loan and get a certificate of eligibility. The document verifies that you are eligible for the VA program. If you want to apply for the loan, use online platforms, and try to obtain the certificate from the same source.
Ensure you go through your credit report to check for any errors before applying for the loan. Your situation should also help you determine the best period to settle the mortgage. If you have a stable income, you can choose to pay it back within a short duration. You can now proceed with the home buying process. Get pre-approval for the loan so that sellers take you seriously.