First-Time Homebuyers
Purchasing Your First Home
How Much Home Can I Afford?
Usually, the first thing that potential homeowners ask themselves is, “What can I afford?” The number of factors determining a reasonable mortgage payment depends on a person’s annual income, present debt obligations, down payment (if any), and additional costs like homeowners insurance and housing association dues. A handy VA Loan Payment Calculator is available on AmericasVaLoan.com to help homeowners figure out a manageable monthly payment.
Buying a home with a VA-backed loan
Discover the VA program’s precise procedures for applying for a home loan.
What kind of VA-backed loan will I need if I want to buy a home?
To apply for this loan, you must use a private lender, like a bank or mortgage company. Because we will guarantee a portion of the loan against loss, your lender will be able to provide you with better loan terms, such as the option to pay no down payment.
How can I buy a house with a VA-backed loan?
A VA-backed loan is only one step in the lengthy house-buying process. You can keep on course with the help of the following actions.
How to start the process of looking for a home.
Submit an application for a Certificate of Eligibility for a mortgage backed by the VA (COE)
You must give your lender a copy of your COE to prove your qualification for the home loan advantage.
Take a look at your current financial status.
Examine your credit history, income, expenses, and monthly budget to ensure you are ready to buy a home. Make a budget for your mortgage, and include closing costs in the overall cost.
Choose a lender
Remember that you won't be getting your loan from us but through a private bank, mortgage company, or credit union. Because lenders' loan interest rates and costs vary, shop around for the loan that best meets your needs. Lender fees should be planned for. Many lenders charge veterans who use VA-backed mortgages a fixed fee of 1% (sometimes known as a "loan origination fee"). Lenders may impose additional fees on you. If you need clarification on a fee's purpose, ask the lender. Sometimes, lender costs are negotiable.
Choosing an estate agent
Obtain internet or personal referrals from friends, family, and neighbors for reputable real estate brokers. After meeting with a few, pick the agent you like best. Be sure to read the contracts before deciding to work with an agent. As the buyer's agent, you are responsible for ensuring that you know all fees, charges, and commitments, as well as your obligations and legal rights
Invest in a home
Look at houses in your price range until you find one that suits you. When comparing homes, be careful to consider the features that are most important to you and your family. These may be things like how far you have to commute and the caliber of the local schools.
Steps to buying your home
Together with your agent, you should draft and execute a purchase agreement.
Ensure the sales contract contains the "VA escape provision" or "VA option clause." The buyer can end the contract if the property does not appraise for the agreed-upon amount. Ask your real estate agent about additional grounds for terminating the agreement that you might want to include, such as if the property passes a house inspection. These options are referred to as contingencies.
Have the home inspected out and valued
We strongly suggest inspecting a home before you buy it to check for any severe faults. Additionally, a VA-approved appraiser will value the house and determine whether it complies with the MPRs or minimum property standards. Please be aware that an inspection is not the same as an appraisal.
● You have a few options if the property's appraised value needs to be higher to qualify for the loan. You can:
● Submit a Value Reconsideration Request (ROV). You can ask your real estate agent to provide the lender with credible sales data proving the property is worth more than the value stated in the appraisal. The lender will urge the appraiser to reconsider based on this information.
● Discuss the buying price once more. Ask the seller to lower the price to reflect the evaluated value.
The discrepancy between Sales Price and Appraised Value to be Paid. This cost will be your responsibility to pay at closing.
3. Examine the pre-closing paperwork, and give your lender any additional information that may be necessary
Your lender is required to give you a Closing Disclosure three business days or more before the closing. Make sure you read it thoroughly. It also includes the loan terms, fees, closing costs, and the anticipated recurring monthly mortgage payments. Your lender may now ask you to provide more supporting documents or information.
Complete purchasing your new home
Your closing could happen at a title company, escrow agency, or attorney's office. Be prepared to sign a lot of paperwork, and read each one thoroughly before signing it.
Take part
After the closing, you can move into your new home. Congratulations!