The purchase of the first home is a mountain like Mount Everest which should be conquered in order to face all the challenges related to bureaucracy. Nevertheless, the acquisition of the VA loan is not very difficult; this process is even easier than the purchase of a car in the local car dealer. Since you already got the possibility to do it, it is time to use it in order to buy your house without making any down payments. Here are some tips how you can manage to do it.
Firstly, you need to confirm that you have this privilege. For this purpose, you should have a certificate of eligibility or COE. This document can be obtained directly from the VA using the eBenefits portal or through the lender, if they have access to this document.
Now, it is necessary to proceed to the financial evaluation. This process requires the information about the credit history of the buyer as well as his debt-to-income ratio. Your FICO score must be 620 or higher. Also, the lenders need to be confident that you have enough finances to pay for your mortgage without being hungry.
Now, it is time to choose a real estate agent. However, not all of them have enough experience in dealing with VA appraisals. That is why you may end up with a problematic house. In order not to make this mistake, choose an experienced real estate agent.
Then, it is time to sign the purchase agreement and order the appraisal for the lender. After it, it is necessary to wait for the verdict. The VA appraiser estimates the price of the house and confirms that it meets the minimal property requirements of the VA.
Now, you are ready to go to closing. You should have identification documents and money for covering closing costs. In some cases, the seller covers the closing costs, so you will not have to pay extra money. At closing, you will sign your signature on dozens of documents, and your house will become yours.