Things a Veteran Should Know When Buying a House

1. Things a Veteran Should Know When Buying a House If you are a Veteran looking to buy a house, you need to understand the VA Loan application process. You will need to get a Certificate of Eligibility (COE) from the VA to prove to the lender that you qualify for the loan. To get the Certificate, fill out a VA Form 26-1880. You submit the form along with proof of military service to the Winston-Salem Eligibility Center. Some lenders can get this Certificate for you, if there is adequate data in the VA records. If you are discharged from active duty, get a copy of DD Form 214, Certificate of Release or Discharge from active duty. Include this with your VA Form 26-1880. If your discharge was after October 1, 1979, DD Form 214 copy 4 should be included. Those who served in Selected Reserves or the National Guard need to show at least six years of service. For Army or Air Force National Guard, submit NGB Form 22 or NGB Form 23. You can get your eligibility for a VA Home Loan restored if you have had a VA loan before and it is paid off and you are going to sell the first home. The unmarried spouses of a deceased veteran who died on active duty or as the result of active duty is eligible for the VA Home Loan. You need to contact the Winston-Salem Eligibility Center. The next thing you need to do is consider how much you can afford to pay each month on a mortgage. It is best to guess too low than too high. This will keep you out of trouble down the road. Take a look at your credit report. If anything is incorrect, get it corrected before you apply for the mortgage. If you qualify for a VA Mortgage Loan, this is not a one-time loan. You can get VA Loans for the rest of your life, as long as you are not in default on any earlier loans. Get pre-approved for your VA Loan. It will make things go a lot smoother when you are in the buying process. It is reported that nine out of 10 VA Mortgages require no down payment. However, you will need money for the earnest deposit and appraisal fees. You will normally get these back when you close on your home.

2. Before going in to apply for the mortgage, understand that you will have to show some residual income each month. It is a very important aspect of getting the loan approved. Residual income is the money left over after you pay your mortgage and household expenses for other things, like food, gas, etc. If you don’t have enough residual income on your first go around, reduce your mortgage amount before you apply. You cannot borrow extra money for upgrading your new home. You can only get the selling price or the appraised price, whichever is smaller. If you want to do upgrades, you will have to pay for them yourself. It is best not to go through job changes or make other large purchases during the mortgage application process.