VA loans have been in existence since 1944, following the end of World War II. First, veterans need to find a VA lender and prequalify. The criteria is based on the individual’s income, credit entitlement and other financial factors.
Next, the veteran will get an estimate of how expensive a house they can afford. VA loans are primarily designed for “move-in-ready” single- family, condo, modular home or some multi-unit properties.
Once the veteran is under contract, their lender will order a VA appraisal of the home and property. Underwriters evaluate the buyer’s income, financial information and other documents along with the appraisal, once it’s finalized.
Hopefully the veteran receives preapproval and receives a letter from the lender that verifies the vet’s income and other financial information to show the REALTOR. When the vet finds a home they desire to buy they put in an offer and with the help of the REALTOR, negotiate a contract with the seller.
Following the approval, the veteran will be issued a “clear to close” and may complete the closing.
These loans don’t have mortgage insurance, but instead, a monthly fee that a borrower must pay if they have less than 20 percent down on a property.
VA loans are available despite foreclosure or bankruptcy. Despite whether or not the service member has had a history or bankruptcy or foreclosure, borrowers can still secure a VA loan.
Leading Edge Real Estate Group
1423 Huntsville Hwy.