For a number of years now, service members, their eligible spouse and veterans have been attracted to the security and the buying power offered by a Veteran Affairs home loan. This is an option that has helped over 20 million veterans recognize their dream of home ownership since back in 1944. The surge in volume les to a much tighter lending market and it has resulted in more awareness but also resulted in some confusion regarding Fort Lauderdale VA Loans and the conventional loan options that are available.
There is no question that purchasing a home can be quite an intimidating process and it is not too uncommon for a veteran to go through the entire VA purchasing process and never really understand what the program has to offer.
Navigating Through the Process of VA Loans in Fort Lauderdale
The process used to acquire Fort Lauderdale VA Loans is not very complex; however, since it is considered a specialized product, it will require some extra attention from experienced lenders to ensure that the closing is reached in an expedited manner. The results from this process will hinge on the actual lender, as well as the borrower. This is a dynamic that makes it completely necessary to understand what you should expect from the entire process. When you do this it can help you to save quite a bit of time, as well as feelings of stress and uncertainty.
The steps through the VA loan process are as follows:
- Submit Accurate Information
You need to double check the application you submit to ensure that it is completely error free. The loan underwriter is an expert that is responsible for ensuring that all the information on a loan application is complete and accurate. The majority of mistakes are caught early on and can be fixed quickly; however, a problem that slips through the cracks can result in a delay in the entire loan process.
- Maintain Constant Credit
Prior to closing, the underwriters will reverify your credit rating in order to be sure that it has not been altered and that you have not taken on any large debts during the VA loan process. If there are changes to your debt-to-income ratio or you have defaulted on other responsibilities, then it can result in a serious delay or even a loss of approval completely.
- Providing Statements and Forms
When applying for a VA loan you need to be ready to submit your financial information and statements including your tax records, W-2 forms and pay stubs. Another form that will be necessary is the Certificate of Eligibility. This can be acquired through any VA approved lender or from the actual Department of Veterans Affairs.
Differences in Fort Lauderdale VA Loans and Conventional Loans
The primary difference that is present between Fort Lauderdale VA Loans and traditional borrowing options is that a qualified borrower will have the ability to purchase homes that cost more than $417,000 or more in an area that the VA considered high-cost without having to pay any down payment – which can be a significant benefit. This fact, as well as the flexible requirements, the lower fees and no need for private mortgage insurance ensure that VA loan borrowers receive a number of benefits that are not offered with any other loan option.
Another huge difference is the appraisal process by the VA. The VA will ensure that the homes that are purchased with their loans are sanitary and safe properties that are considered to be “move-in” ready. This means that the VA is going to assign a private appraiser for home assessment purposes. In order to prevent any interest conflicts, the VA appraisers are assigned randomly and not able to be requested.
The VA approved appraiser will assess homes using a set of established minimum property requirements that will address the higher level issues that may be seen as a safety or health hazards for the veteran or their family. Some of the issues that are sought include any mechanical system issues, domestic hot water, potable water supply and a safe option for disposal of sewage.
It is the rigorous appraisal process that makes the program for VA home loans one that is not right for a fixer-upper and even a number of foreclosed properties. It is also important to remember that this independent appraisal process by the VA does not mean that you should not have your own private home inspection. Failure to do this may leave you with serious issues in a home that you absolutely love.
Just like all the other home buying programs, Fort Lauderdale VA Loans are designed to provide help to those who have served the country. While the requirements may be quite strict in terms of your financial stability and the home you choose, it is well worth it due to the quality home and low rates you may be able to achieve. Taking the time to learn about the process can help you understand why it can be beneficial. However, if you still do not fully understand, you can discuss it with your realtor, who can better explain all the details and how it will affect you, the down payment you will have to have and your payment options. If you are a veteran and ready to be a homeowner, then looking into VA loans is a good move.