Veterans and active duty servicemen looking for affordable home financing have the option of a VA loan—a type of mortgage that is guaranteed by the government and are made available to veterans through various lenders. These loans offer an attractive option to borrowers as they are fixed-rate loans that require little to no money down. Here are steps to taking out a VA loan in Colorado Springs:
- Get your requirements down. VA loan borrowers must meet eligibility requirements in order to get approved. These requirements primarily involve the home being used as the main or primary residence on top of the applicant having sufficient income to sustain the loan amount along with satisfactory credit. Meeting these warrants a VA COE (certificate of eligibility), which you can then use to begin your loan application.
- Shop for an approved lender. Many lenders are approved to participate in the VA loan program. By approaching a loan officer, you’ll know what kinds of documents you need to apply and what size mortgage you qualify for.
- Get pre approved. A mortgage pre approval will help you show sellers how serious you are about the home purchase, giving you a leg up over other buyers competing for the same house.
- Find the right home. Work with a real estate broker or agent who has a good understanding of VA loans. This will help you maximize your benefits.
- Assess the property. Look for a VA-approved appraiser to help you determine the real value of the home you want to purchase and to find out if the home meets property condition requirements as per VA loan guidelines.
- Secure a purchase contract. It is your agent’s job to help you create a strong offer and ensure a good negotiation strategy such as convincing the seller to pay for some or perhaps even all of your VA closing costs.
- Close the process. Sign documents and agreements with your seller and wait for your closing disclosure to see a full breakdown of final closing costs.
These are some of the basic steps you’ll likely go through as you seek out a VA loan. Understand, however, that lenders may follow different processes, depending on their policies and system and that VA loans may take longer than conventional loans to be approved due to additional documentation requirements.