| Obtaining a home loan for the purchase of property | | | | program known as the Lender Appraisal Processing |
| can be stressful and a massive experiment in red | | | | Program. Lenders approved for this program can |
| tape. Military veterans can avoid much of this with VA | | | | essentially accept the appraisal as a carte blanche |
| loans. | | | | valuation and issue a loan on the amount. This can |
| Advantages of VA Loans over Conventional Loans | | | | greatly speed up the approval process for veterans. |
| If you have not served in the military, getting a home | | | | An additional advantage of VA loans concerns the out |
| loan can be maddening. The amount of documentation | | | | of pocket cost to actually purchase a home. Whereas |
| you have to supply can be shocking. After you submit | | | | most non-military borrowers are looking at a ten to |
| the first pile of documents, the lender may ask for | | | | twenty percent down payment, VA loans often |
| more. After a while, you start to wonder if you are | | | | require little or no down payment. This allows veterans |
| applying for a home loan or seeking passage through | | | | the opportunity to purchase a property without having |
| the pearly gates. For veterans, getting a VA home | | | | to go through the process of saving up funds for a |
| loan is shockingly simple. | | | | down payment. |
| One of the major advantages of a VA loan is the | | | | Private mortgage insurance is the bane of most |
| application process. It is so simple, one tends to laugh | | | | borrowers. Most lenders require PMI when a borrower |
| when going through it. The first step is to contact the | | | | fails to pay at least 20 percent of the sales prices as |
| local VA office and apply for a Certificate of Eligibility. | | | | a down payment. PMI is required because the lender |
| Upon approval, you will go house hunting and find the | | | | wants to cover the risk of the loan being defaulted on |
| home you wish to purchase. You then contact a VA | | | | before there is much equity in the property. There is |
| approved lender. The lender will order an appraisal, pull | | | | no PMI requirement for VA loans, since there is no risk |
| credit and ask for income statements. Basic closing | | | | with the government guaranteeing repayment. This |
| tasks are undertaken such as title checks. If no issues | | | | advantage can save a borrower thousands of dollars. |
| arise, the lender issues the loan and you move in. | | | | The above represent only a few of the numerous |
| In many situations, the VA has created an even | | | | advantages one can get with a VA loan. Contact your |
| quicker process for veterans to be approved. One of | | | | local VA office to find out more if you have served in |
| the lengthier tasks in a loan approval can be the | | | | the military. |
| appraisal process. To shorten this up, the VA has a | | | | |