Our soldiers have proven themselves worthy of more than just praise from us and the government. They also deserve to be given rewards for their bravery and sacrifice of leaving their families behind. To secure their family's and their own future, the government has instituted VA loans for veterans or their surviving spouses provided that they haven't remarried.
Through the Department of Veteran Affairs, a veteran or the spouse of a veteran who has died in action can get a housing loan without down payment. The VA will serve as their guarantor for the debt. Those living in rural areas and small towns can highly benefit from this because they're aimed areas that have less private financing firms.
But before they can avail of these privileges, they will have to follow a few steps so they can be successful in ensuring a grant for the loan. The entire process of obtaining these loans is similar to that of the regular one, except the fact that VA loan rates are easy on the pockets of these individuals.
First, they need to look around for a house. This step can be quite tricky for some since they need to consider a lot of different factors. But once that has been established, they can contact the broker or the seller that they are interested in buying the property. They need to indicate that they're buying through VA loans so the seller will be properly guided.
After that, they can ask for a purchase contract from the seller and a Certificate of Eligibility from the VA. They also have to fill out the application form that contains all important personal data. When that is completed, the lender can start processing their application for loan.
The application form is usually the source of error and it needs to be properly filled out. This contains all the important data like the applicant's security numbers, their residence history, history of employment and current employment. Applicants also need to indicate their other assets and properties including personal items.
A credit report is also necessary to be furnished by the borrower. This is important when trying to evaluate their capacity to pay. Past debts could compromise their ability to pay for mortgage. They also need to obtain an appraisal of the property.
If they already have previous mortgages that they haven't paid off, they can borrow money as well to refinance it. They can do that even without extra expense. But the loan has to be from the VA to be awarded with this type of refinancing. And this type of refinancing doesn't allow cash-out, or else they can always opt for the cashout refinance.
This type is called a VA streamline refinance and it is one of the most convenient feature for VA loans. Veterans and their families need to be praised for sacrificing months or years in dangerous territory or training to defend the country. They too need their families to be secured in case they die in line of duty or get injured badly, that's why this program, they can help a lot of soldiers, their families and former soldiers.