Compared to conventional mortgages, VA loans have more benefits. The fact that the government partially backs them makes it easy for veterans to get access to them. It is also worth noting that they are more lenient when it comes to credit scores. The interest rates are also very manageable, and one is allowed to restore their VA loan privileges once they complete payment for a first loan.
While there are those benefits, potential homeowners make mistakes that deny them the opportunity to get loans and amazing homes. Below are some of these mistakes.
1. Not working with a lawyer or property evaluator
In order to enjoy a VA home loan benefit, it is essential to involve professionals in the process of getting a home. As much as VA does an appraisal on the property you want to purchase, it is vital to note that the inspection may not be meticulous. This means that you can still find defects in the home, but it will merely be VA’s fault.
That is why you need to work with a professional property evaluator or an attorney to discern if the home is for a purchase. You should familiarize yourself with the legal requirements pertaining to the purchase of a home. Working with an attorney will ensure that the home buying process is seamless, and there are no regrets.
2. Not having a certificate of eligibility
Most veterans make the mistake of doing the last-minute rush in acquiring the certificate of eligibility. Your lender will want to know the status of your entitlement before they approve your loan request. Delays in getting this form will consequently affect how soon you get the loan.
Having it upfront can save you a lot of stress by making the whole process smooth. There are several ways through which you can get the certificate. Your lender can help you get it, or you can apply for it on the VA website.
3. Lack of DD 241
Note that a mortgage lender will not just give the VA loan to anyone. You need to prove that you are or was a service member. The DD 214 or Certificate of Discharge from active duty is the best shot at this. Without it, you will not be able to prove that you once served, making you ineligible for VA loans.
No loan will be disbursed without this, and approaching a mortgage lender without it would be a waste of time. Note that the certificate takes some time to be released after application. Therefore, if you are looking to get a VA loan, you should start the application earlier. It may take up to several months to be released; being proactive is therefore critical.
Getting everything right is vital for the success of a VA loan application. You should be ready with the proper documents when approaching a mortgage lender. Failure to do so may cause delays or denial of the loan. Avoid the mistakes above, and your VA loan application process will be effortless.