The home buying process can be daunting for any first-time buyer and it is no different for military families using the VA Home Loan. You will not only juggle finding the right house, but you’re also juggling financing and real estate agents. There is a lot to know, which is why we created our Free Education Program, Savvy Veteran Homebuyer, for you to get all the answers you need about buying your first home with the VA Home Loan.
1. Before you start looking at homes you will need to get pre-approved for your VA Home Loan
You will be required to produce a Certificate of Eligibility (COE) which shows that based on your military service you qualify for the VA Home Loan benefit. If you don’t already have a copy of your COE then your VA Mortgage provider can help you to obtain a copy.
2. Your VA loan will cover 100% of the purchase price, minus any closing costs or fees that are associated with buying a home (i.e., appraisal, title search).
This means that you will mostly need some cash on hand to purchase your new home. A home inspection, appraisal, and closing costs will be a few of the additional costs that you will want to budget for when planning for your purchase. There are programs such as Pay-it-Forward Home Loans, Powered by USA Mortgage, that can help to alleviate these out of pocket expenses as they allow you to wrap them into your closing costs, but you will still want to have cash on hand before you enter into a contract to purchase a home. For more information on exactly how much you will want to budget for these items check out our article about Budgeting For Buying Your First Home.
3. There’s no limit on how much money we’ll lend you! That means if there’s an offer on a $300k house but it needs $50k in repairs, we’ll still give you the full $300k as long as it meets the VA lending guidelines.
VA Lending guideline ensures that properties are in good condition for a Veteran to purchase. Some of these property requirements include:
- Mechanical systems must be safe and have reasonable future utility
- Heating must be adequate
- Roofing must be adequate
- Crawl spaces and basements must be dry
- The property must be free of termites, dry rot, and fungus growth
- Lead-based paint must be remediated
Ensure that the Real Estate Professional that you are working with understands that you are using your VA Home Loan and limits your home search to properties that will fit the criteria. With the right team, purchasing your home with your VA Home Loan can be a piece of cake! Join Savvy Veteran Homebuyer to learn more about finding the right home buying team for you.
