If you've served in the U.S. military, a VA loan might be an excellent way to finance your first home. If you're interested in using this benefit, it's important to know the steps involved. Here is a basic guide to buying your first home with a VA loan:
Get Your Certificate of Eligibility
A certificate of eligibility from the VA shows you meet the requirements to apply for a VA loan. These could be either personal military requirements or surviving spouse requirements. While you won't need this document until it's time to close on the loan, it's best to get it as early as possible to avoid paperwork delays.
Compare Lenders
Comparing lenders when applying for a mortgage is especially important if you're wanting a VA loan. Not every lender offers VA loans, and some who do specialize in a specific type of loan or type of client. Find a lender who offers first-time buyer benefits to veterans through your state.
Prepare Cash
VA loans don't require down payments, but it's still important to prepare some cash to pay for other expenses. Some of these costs include the earnest money deposits and moving expenses. You can also increase your odds of approval if you have strong cash savings, as lenders use this as a determining factor in your loan application process.
Find the Right Agent
Finding a real estate agent who has experience working with military clients will benefit you in many ways. It also pays to find an agent who has worked with first-time homebuyers and can help you navigate the system with confidence. Try interviewing a few agents and asking about their prior experience and expertise. It can also help to inquire about any special training or certifications they might have received for working with military clients.
Buying your first home can be stressful, but if you're a military veteran, you have great opportunities for financing. Remember these tips when considering your loan options to make the best decision.