By guaranteeing a portion of the loan you seek through mortgage companies and banks, Home at Last can help you attain better rates.
How do you qualify? The answer is specific to each category of person. While detailed information can be found on the US Department of Veterans Affairs website, Home at Last has put together this overview to give you a basic snapshot of the VA loan process to get you started:
A good credit rating
Income – mortgage payment should be 25%of your income maximum
Certificate of Eligibility – tells your lender that you are a candidate for a VA-backed loan
While it’s good to pull your credit report from the 3 major reporting bureaus to get your credit score and address any negative reports, mortgage companies typically pull the data from their own sources and the scores may be slightly different. They will use the middle score of all 3.
GETTING PREAPPROVAL & CERTIFICATE OF ELIGIBILITY
Based on a review of your income, job, score, and debt situation, if approved, your lender will provide you with a qualifying loan amount and if you use your VA benefit, your Certificate of Eligibility.
To get your Certificate of Eligibility [COE), you must have been discharged for reasons other than dishonor and meet service requirements. If you do not meet the minimum service requirements, you may still be eligible if you were discharged due to [1) hardship, [2) the convenience of the government, [3) reduction-in-force, [4) certain medical conditions, or [5) a service-connected disability.
There are slightly different lists of forms needed, depending on your service category. After gathering all the documents you need, you can apply for a COE online through the E-benefits portal, by mail, or through your own lender, most of whom have the Web LGY system.
VA APPRAISAL EXPLAINED
After you’ve found the perfect home, you’ll be ready for a VA home loan appraisal.
The VA home loan appraisal is part of the process of obtaining VA backed funding for your mortgage. It is paid for by you [the buyer) and costs about $500. In short, it is a thorough look at your potential home’s condition and value that focuses on health and safety concerns. If any aspect of the home is flagged, you will need to renegotiate the contract to remedy those issues before the funds for your loan will be released.
WHO DOES THE VA APPRAISAL?
After your appraisal is ordered, your regional VA loan center will randomly assign a VA-approved appraiser to your case. This is to ensure that the appraiser is objective and has no interest in the transaction and the appraised value will be fair and unbiased.
ENSURE COMPLIANCE WITH PROPERTY REQUIREMENTS
These screening guides are intended to ensure that VA loan applicants are purchasing move-in-ready homes that offer a safe environment.
Things to watch for while searching for homes:
ESTABLISH PROPERTY VALUES
To establish the value of a property (how much the lender should loan towards the purchase), appraisers will look at the sales of comparable homes to arrive at a fair market value for your property. Then value is adjusted depending on the specific features of the subject property.
When your appraisal is complete, your lender will be provided with a comprehensive appraisal report. The report should include a variety of details about your property, including maps, photos, and sketches of each floor. The most significant part of the report explains the value calculation and lists any repairs needed to bring the home up to VA standards.
APPRAISAL VS. INSPECTION
It is important to understand that the VA appraisal process and the home inspection that is part of your contract are different. There is no national standard for what is included in a home sale inspection. It’s important to keep your emotions in check until after the home inspection. For older homes especially, an inspection before you fall in love with a house can prevent heartache. The inspector should provide an assessment of the home’s heating and cooling system, electrical system, plumbing, walls, ceilings, flooring, foundation, roofing, drainage, and basement. Many of these things are not readily apparent by walking through a cleaned-up home for sale. Even if there are issues that crop up, they may be fixable, or the cost can be included in the transaction, or by reducing the home price. A home inspection is done before the VA Appraisal which will have you more prepared for any potential issues.
Current VA – Cash Out Refinancing
Into VA – Cash-Out Refinancing
*If you do NOT have a Certificate of Eligibility (COE) within the past 6 months please apply here: https://www.ebenefits.va.gov/ebenefits/homepage