This is why and how you should consider a VA loan application.
The VA loan program doesn’t have borrowing limits, so it can be highly beneficial in expensive markets. Due to no down payment or mortgage insurance required, military personnel is able to get approved for a home loan more easily. In January 2021, the program was broadened by legislation to make it easier for National Guard members to qualify.
You can get the military loan approval you need for a new home today. Keep reading to learn more about how the application process works. Here’s a quick guide on how to get apply for the VA loan program.
VA Loan Program Preapproval
Prospective buyers who meet mortgage lenders’ credit score requirements will provide documents to verify. Information requested depends on your income source, military service history, and others. Your VA-approved lender may ask for other documents.
You may be asked to provide a copy of your government identification, a copy of your DD-214 or Reserve/Guard points statements, a statement of service for active duty borrowers, pay stubs, W-2s for two years, recent bank statements, and disability award letters.
Once you receive a preapproval letter, you can start your home search. There are real estate agents that are specialized in the VA loan program. These agents can help you get the most benefits.
Your loan officer and agent will craft a strong offer with you. Your agent will likely review recent home sales in the same area as a starting point for an offer. It can take a few rounds of negotiating before you’re under contract for your future home.
Once under contract, your loan team will send documents to loan processors and underwriters. The lender will order a VA appraisal through the Department of Veterans Affairs. The VA will assign an independent, third-party appraiser to note any repairs required to meet the VA’s Minimum Property Requirements.
Buyers will receive a Closing Disclosure before the scheduled closing. The document compares final closing costs and loan information to early estimates and is something your loan officer can review with you. The final thing you’ll do is participate in a walk-through.
Colorado VA Loan Program Benefits
Colorado VA loans are available to most veterans, military, and widows/widowers of military members. Veterans can apply for a VA loan in Colorado once the minimum active duty service requirements have been met. The following are some benefits:
- 100% financing
- No private mortgage insurance (PMI)
- No pre-payment penalty
- Up to $424,100 loan amount
- And more
Read additional information to learn more.
Improve Your Finances Today
You can use what you read today to understand the VA loan program. This guide provides you with the information you need to prepare for the application process. This quick overview will help you gather the correct documents for faster approval.
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