There are many reasons why more people are focusing on the benefits that the VA home loan can bring when purchasing a home. VA home buyers can purchase a home and save more money than with any conventional loan, in addition to many other perks the VA loan provides. Visit or call a regional VA HLC Loan Center to discuss personally all of the options that are available to you. More savings might be available to those who are first time home buyers.
Home buyers will save money with VA loans because they do not have to make a down payment. There is even a way to structure the transaction where out-of-pocket money from you (for inspections and appraisal) is even refunded at the end of the transaction (also called a VA NO/ NO). This is one of the biggest benefits that many people using a VA home loan have found. They love being able to save money when buying a home to use for other things inside the home. If the home is already purchased, a VA mortgage can also help pay for some home repairs.
The closing costs are close to nothing, and can be paid completely by the seller of the home. This is because the law limits what costs the buyer can pay out of pocket (VA loan use only). Usually it is possible to negotiate to have the seller pay for any and all closing costs on the house when purchasing the home using VA loans. Depending on the offer price, the seller assumes all charges for the closing costs, which they can then recoup from the VA home loan. Of course, if the closing costs are higher than what the seller anticipated or can afford, the buyer might be responsible for some of the fees out of pocket. The VA HLC loan officer can let you know whether or not your closing costs can be rolled into the loan or paid by the seller.
For this purpose, it is strongly advised that the borrower hire their own real estate agent to represent them.
What exactly do the closing costs include when purchasing VA homes? The closing costs include the first mortgage payment from the buyer, the pro-rated property taxes, pro-rated home owners’ insurance, escrow fees from the transaction, title fees from transferring the deed from one owner to the next, transfer taxes that might not have been paid by the previous owner, and any other charges that might occur during the course of closing.
The buyer selects the insurance provider, though it must be approved by the VA office with the proper documentation from the insurance company prior to the close of escrow. The property taxes can also be brought down throughout the years using the STAR program for qualified individuals.
Buying a home should be an exciting and rewarding experience. If you can qualify for a VA loan when you apply, the experience will be more enjoyable for both buyer and seller during the entire transaction. The VA loan officer can help with any questions you might have during the process and they will also walk you through each and every step. Take the next step and apply for a VA loan rather than a traditional (conventional) loan today.
VA HLC provides VA loans and related information.
