Just recently, VA Home Purchase is considered the most preferred choice for most veterans and active military service members because of the incredible benefits provided to our patriots. Acquiring a home with your VA loan is simple and as easy as 1, 2, 3 allowing you to become proud home owners in no time.

Purchase A Home With Zero Down Payment

This is an exclusive benefit simply for veterans and military service members. This VA home purchase advantage allows a veteran or active military service member to buy a home with no up front costs involve making room for personal expenses for future home repair. VA loan is definitely the only loan program that promises this kind of benefit.

Save Hundreds Dollars Every month

Interest rates usually are lower than most standard conventional loans. Another excellent advantage is the fact that there is absolutely no PMI involved which happens to be an additional monthly expense in most conventional loan and once added up can amount to bigger monthly savings on your part as a future home buyer.

Purchasing the perfect home can be a very rewarding experience for first time home buyers but before buying that dream house of yours here are a couple things to consider before closing the deal.

1. Shop together

It is essential to talk about your needs together with your partner when looking for a home. Try to go on home tours and constantly look into new listings available in the market.

2. Put your finances in order

Before thinking about buying that dream home of yours keep in mind that VA loan borrowers are normally under credit scrutiny by VA lenders. Credit ratings for VA loan borrowers need to make the cut to 620 minimum. Your monthly income and employment will always be reviewed by a VA lender.

3. Don’t overspend

Always remember that purchasing a home way beyond your means simply means financial suicide. Never ever purchase a home that is more than 2 1/2 times your annual salary.

4. Consider your neighborhood

Try to look for homes that are within your budget but pick a home with the right kind of neighborhood for your family. Pedestrian-friendly sidewalks, low crime rate, park for the little ones, community center, and convenient transportation are some of the facts to consider before you make the prospected home as “the” one.

5. Remember, have fun

Do not rush yourself into buying a new home right away. You will always know when a perfect home for your family comes along. Always wait for the best offer from the agents. In the meantime, enjoy house hunting while it lasts.

This is the perfect time to purchase that dream home you have always wanted. With rock bottom VA Rates in the market today you will have a bigger chance of owning a home. But most of all enjoy your journey to future home ownership.

Trying to find the perfect VA Mortgage and asking lenders for their current rate is far more complicated than getting a phone. VA loans are guaranteed via the Veterans Administration and insure the lender from loss. Remember that VA mortgage rates typically are not issued by the VA, but by lenders.

For the individuals who qualify for a VA Mortgage the following are the three core advantages offering money saving opportunities.

1. Big Financial Savings

VA loans are special due to their no down payment, no PMI and low interest rate offers. The no down payment option can ease the burden of saving for home when most conventional loans require people to place 10 to 20% down payment. VA loans are truly no money down loans. You are equipped with the option to put down money to lower your monthly payment, however you will not be required to do so. Low interest rate that are between 0.5 to 1 percent less than other conventional loans. Another possibility is no need for private mortgage insurance, saving you more than $100 monthly.

2. Flexible Loan Type

VA loans offer two kinds of loan. The Adjustable Rate Mortgage (ARM) and the Fixed Rate Mortgage kind. Adjustable rate mortgage are tailored for the low to moderate income families while in fixed rate loan interest rates stay exactly the same for the term of your loan could be 15 or 30 years.

3. Easy Credit Approval

With VA loans there is no set credit score requirement. The approval specialize on the debt to income ratio instead of your previous credit standing.

VA Mortgage is actually applicable to owner occupied type of residences. Try not to use your VA House Loan for vacation type properties. Search to see if the grass is greener with other lenders. Always compare costs and getting the best deal is definitely wise. Knowledge is your best weapon when deciding what VA mortgage is appropriate for your current situation.

When choosing a path toward home ownership, majority of the veterans wonder why a VA Homeloan is more suitable than other conventional loan. Eligible veterans who qualify are encouraged to utilize the VA homeloan because of the enormous amount of money save, a VA homeloan is much more manageable than most conventional loan.

What most veterans should know is the fact that a VA homeloan is an effective investment tool for them. Given that there is ease in access to mortgage products, there is absolutely no down payment and PMI involved. Not to mention VA Rates are at historic all time lows right now. With those advantages, veterans can omit several years of renting for years of equity. Keep in mind the factors that go with determining your VA mortgage. Your credit score is really important.

A VA homeloan is a good option for veterans who are thinking about buying a new home. It can give you money saving benefits. Let us discuss some great benefits of VA homeloan.

1. No Down Payment. With VA homeloan there is absolutely no up front cash expenses because VA loan does not require a down payment and the seller is also allowed to pay the closing costs for you.

2. No PMI. VA does not have PMI helping you save hard earned money every month.

3. No Out of Pocket Closing Costs. Other conventional loan requires up front fees for processing which run up to 3% of the amount of the loan. With VA homeloan, you do not need to pay any closing cost mainly because it allows the vendor to pay them.

4. No Prepay Penalty. For early loan pay offs there is no need to pay a fee unlike most conventional loans.

5. Low Interest Rate. VA loans offer affordable monthly interest rate.

6. Assumable Mortgage. Mortgage is transferable in VA homeloan. In this way, you can sell your home especially if the interest rate is less than the present interest rate.

7. Licensed Appraiser. VA assigns an authorized appraiser to estimate your overall home value. For some conventional loans, lenders have the freedom to choose an appraiser costing you lots of money.

8. Adjustable Rate & Fixed Rate Mortgage. Adjustable rate loan have lower interest rate from the beginning and gradually increase as time passes. Interest rate changes annually to the current interest rate. Whereas, fixed rate loan stays the same till the loan is completed.

9. Disabled Veterans Benefit. For 100% service connected disability, a veteran may be eligible for a $50,000 grant for adapting a home to support disability.

Should you try a VA Homeloan? Absolutely, a VA loan program helps active duty and retired military personnel to acquire a home without the need of down payment, competitive interest rate without having you to pay any mortgage insurance protecting you from other predatory conventional loans.

The VA home loan is possibly the best loan. It is available to active military and veterans. Some features are:100% financing and no down is payment required. 30 year fixed interest rate, and interest rates with rates the lowest they have almost EVER been. VA loans are not credit score driven and have flexible underwriting guidelines to get active military and veterans qualified.

VA loans do NOT have monthly mortgage insurance, unlike FHA loans, or conventional loans with less than 20% down. There are closing costs involved with buying a house using a VA home loan even though VA loans offer 100% financing. Closing costs are in addition to the down payment and can

range from 2-4% of the purchase price. VA allows the seller to pay up to 4% of the VA buyers closing costs so it is smart to ask the seller to “credit” you at least 3 % of the closing cost to reduce your out of pocket expenditure.

There are 3 major upfront costs required when buying a house with a VA loan; the earnest money deposit, home inspection fee and appraisal fee. When you make an offer to buy a home, it is customary to put up an earnest money deposit ranging from 1-3 % of the purchase price. This offer will show the seller you are serious. These deposit funds will be held with an escrow company after your offer is accepted. If you negotiate for the seller to pay all of your closing costs, you will get this money refunded when you close on the house.

Though it is optional to get an inspection on the house with a VA loan, it is highly recommended. The cost is on the buyer and usually run about $300 paid upfront. The inspector will check all aspects of the house, the structure, electrical, plumbing and more, so that you know you are making a sound investment.

The buyer will have to pay for a home inspection. Though optional for a VA buyer, it is highly recommended to have a home inspection. As an independent 3rd party the inspector will inspect all aspects of the house such as the structure, electrical, plumbing and more. It is so that you know you are making a sound investment. Home inspections generally run about $300. This has to be paid up front by the buyer.

You will have to pay the appraisal. When you purchase a property, the lender will require an appraisal on the property. A VA appraisal currently costs $400.

After these upfront costs of the earnest money deposit, home inspection and appraisal, the rest of your closing costs will be paid when you close on the house. These costs can be broken into 4 categories; lender fees, title/escrow fees, reserves and pre-paids taken by the lender. There are certain fees that the VA borrower/buyer is NOT allowed to pay. These will have to be paid by the seller. The major fees the seller must pay for are:

Title and Escrow Fees When you “close” your house, it will be handled by an escrow company. They will have a variety of fees to handle closing such as an escrow fee, and notary public fee. These fees will have to be included in the credit that you ask for from the seller and can amount to over $1,000 on average. When you buy a house you will be required to obtain title insurance. There are 2 title policies you must have, an owners and lenders policy. The seller will typically pay for the owners policy and the buyer will pay for the lenders policy. The cost of title insurance depends on cost of the property. For a $300,000 house the fee will probably be around $400.

The lender has fees involved with processing, underwriting, credit check and originating your loan. Remember, the buyer is not allowed to pay for the underwriting and processing fee, so these fees will have to be paid for by the seller. The origination fee can vary depending on your interest rate. Generally if you want to lock in the lowest interest rate, a lender can charge up to 1% of the loan amount as an origination fee. Additionally, if you want to buy down the interest rate below market, you can pay discount points to get an even lower than market rate

When you get a VA home loan, you will have to pay the interest on the loan from the day you close until the end of the month. So for example if you closed on your new home May 5th, you would owe interest on the loan from May 5th to May 31st. This is called pre-paid interest and is part of your closing costs. But then your first payment would not be until July 1st. So you essentially get to skip the June payment even though you move in the house May 5th. The reason for this is because mortgage payments are made in arrears or behind . You made your May payment as part of your closing costs, and you wont make your June payment until July 1st. It can be advantageous to time your closing at the end of the month, so you limit the pre-paid interest and reduce your overall closing costs.

Reserves Held by the Lender When you obtain a VA home loan the lender will collect a reserve of property taxes and homeowners insurance. Be prepared to pay as much as 9 months of property taxes paid up front at closing because the VA lender sometimes asks for this much in advance. If your property taxes are $250/mo, this means the lender could potentially take a reserve of $2,750. In addition, the lender will take a few months of your homeowners insurance up front in advance. It is very important for you to plan for this cost at closing or arrange for the seller to credit you this cost. Property tax reserves required by the VA lender are one of the largest costs related to closing. But remember, this is really not a loan cost. These are property taxes that you will have to pay anyway as part of ownership; you are just paying them in advance. If you sell or refinance, you will get a refund of any remaining property taxes or home owners insurance held in reserve by the lender.

Reserves Held by the Lender Another aspect of a VA home loan is that the lender will collect a reserve of property taxes and homeowners insurance. The lender can require up to 9 months of property taxes paid up front at closing. This can be a large expense. If your property taxes are $400/mo, this means the lender could potentially take a reserve of $3,600. Also, the lender will take a few months of your homeowners insurance up front in advance. Be aware of this cost at closing or arrange for the seller to credit you this cost. Property tax reserves are required by the VA lender and one of the largest costs related to closing. Be sure to prepare for them if this is not fully explained up front by the lender. Remember, this is really not a loan cost as these property taxes are what you will have to pay anyway as part of ownership; you are just paying them in advance. If you sell or refinance, you will get a refund of any remaining property taxes or home owners insurance held in reserve by the lender.

A requirement from the VA lender is that you to pay an entire 12 months of homeowners insurance policy in advance. All lenders require that you keep a homeowners policy on a property if there is a mortgage on it. This will insure against fire and other disasters that could damage your house. Paying 12 months in homeowners insurance up front can total anywhere from $400 to $1,000 or more. Call your insurance agent for a quote as the cost will depend on where your property is located and the purchase price.

VA Funding Fee The VA charges a 2.15% funding fee for VA borrowers using their VA eligibility for the 1st time and 3.3% for those using it for the 2nd time or subsequent times. If you have 5% or more down payment, this funding fee is less than the above stated percentages. Also, if you have a 50% or greater VA disability rating the funding fee is completely waived. VA allows this fee to be rolled into your loan. You do NOT have to come out of pocket for this fee.

Thee closing costs associated with buying a home with a VA home loan can total from 2-4% of the purchase price. It is very important to either plan to have money set aside for these costs or work with the real estate agent who will represent you to negotiate with the seller to pay for your closing cost