7 VA Loan Tips Veterans and Military Personnel Should Be Aware Of

Serving in the armed forces is one of the most honorable experiences many men and women can have. Being in the military comes with a lot of perks and benefits. One of the most overlooked benefits by both Veterans and service members buying a home through a VA loan.

A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs (VA) issued by private lenders and available only to veterans, active-duty service members and their eligible spouses.

Some of the advantages of buying a house through a VA loan are low interest rates and closing costs, $0 down payment, and the option to forgo private mortgage insurance (pmi).

Additionally, the VA did not set a minimum credit score. However, having stellar credit can help to attain rock bottom variable or fixed rates. For peace of mind, be sure to get a free copy of your credit report and check for errors before applying. If you notice anything suspicious in your report, you can hire a credit repair company to help or you can remove the inaccurate items yourself.

Even though VA loans are more popular now than before, it is still different than a traditional loan.

Here are 7 VA loan tips that you need to consider if you’re thinking of buying a home through a VA loan.

1.   You can get started without the Certificate of Eligibility (COE)

• A COE is issued by the U.S. Department of Veteran Affairs and is proof that you are eligible for the VA home loan benefit. However, it is not always absolutely necessary to have the COE before you start.

2.   Your credit score still matters, but it’s not everything

• Lenders tend to be more flexible with VA loans
• There is no minimum required credit required. Your credit score will still determine the type of rates and terms you will receive. The higher the credit, the better the rate.

3.   Make sure you have enough saved

• You are still responsible for certain closing costs (i.e. application fees, insurance, inspection fees, real estate taxes, and more)
• In addition, with a VA Loan there will be a VA Funding Fee. The VA Funding Fee is a one time fee paid to the Department of Vetarns Affairs, it helps support the VA Loan program and makes it possible. 

4.   Shop for a VA lender and get pre-approved

• Look for reputable lenders that exclusively cater to military members, veterans, military spouses, and their families - compare all offers

5.   Find a real estate agent that’s VA-savvy

• Contact your VA regional loan center and ask if they can recommend a VA-savvy agent in your area.

6.   Choose a property that’s VA-approved

• Properties purchased through a VA loan can’t be used as vacation homes or investment properties; condos must meet certain requirements

7.   Close the deal only when you’re ready to move in

• Interested homebuyers must complete the VA’s minimum occupancy requirement. Meaning you must certify that you intend to occupy the home as your main residence.

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