WHAT THE VA?

For some, navigating the murky waters of the loan approval process is scary and uncertain.  This is mostly because there's another language involved, documentation required and this can intimidate a lot of people.

            

Here in Pierce and Thurston counties, the bulk of buyers will qualify (and opt) for a VA Loan.  The VA Loan program is a great financing option to choose and here's why. 

Take a look at this side by side comparison highlighting some of the benefits of the VA Loan Program:

VA Loans	Conventional Loans
0% Down(for qualified borrowers) VA Loans are among the last 0% down home loans available on the market today.	Up to 20% Down Conventional loans generally require down payments that can reach up to 20% to secure a home loan, pushing them out of reach for many homebuyers.
No PMI Since VA Loans are government backed, banks do not require you to buy Private Mortgage Insurance.	PMI Required Private Mortgage Insurance is a requirement for borrowers who finance more than 80% of their home's value, tacking on additional monthly expenses.
Competitive Interest Rates The VA guaranty gives lenders a greater degree of safety and flexibility, which typically means a more competitive rate than non-VA loans.	Increased Risk for Lenders Without government backing, banks are taking on more risk which, in turn, can result in a less-competitive interest rate on your home loan.
Easier to Qualify Because the loan is backed by the government, banks assume less risk and have less stringent qualification standards for VA Loans, making them easier to obtain.	Standard Qualification Procedures Conventional options hold stricter qualification procedures that can put homeownership out of reach for some homebuyers

Courtesy of Mike Villano from Veterans National Lending Group, we have a list of Top 5 VA Loan DO's and DON'Ts regarding getting your financing in place.

DO:

 1.  Gather your personal documents including taxes, bank statements and pay stubs

2.  Make sure balances on current debts have been paid on time and are not at the credit limit

3.  Have an idea of what you would like to spend each month on a mortgage payment 

4.  Prepare for the transaction to take 40-50 days from the time you have a contract on a home

5.  Link up with a lender who can complete a thorough pre-approval before you go looking at houses

 DON'T!

 1.  Change jobs before or during the transaction 

2. Charge up credit cards or current debt

3. Apply for or open any new debts

4. Deposit cash or any funds which cannot be paper trailed to your bank accounts

5. Get pre-qualified by any lender who does not require all of your documents prior to a pre-approval

If you have any questions regarding this process or anything else, we would love to help!- Give us a call at (360) 400-3475 to get answers from knowledgeable experienced professionals who understand.

Cynthia Schmier, Broker/Owner 
CRS, CDPE, CNE, CIAS, MDI, 5-STAR, SRS
RE/MAX Country

Cynthia@Cynthia-Online.com
(360) 400-3475
www.cynthia-online.com