Veteran VA Home Loan Benefits
Your VA Home Loan Benefits: Understanding Appraisals And Closing Cost Caps
When you entered the military, you gained a new family headed by your Uncle Sam. Families take care of each other, so one of the best benefits you receive from your time in the service is access to a VA loan. As your friends are scrambling to put together a down payment, you have the opportunity to use your VA home loan benefits to acquire a mortgage loan with no down payment, no PMI insurance payments, no prepayment penalty, and low interest rates.
As part of obtaining a mortgage with your VA home loan benefits, the VA backs part of the mortgage as an incentive to the bank to loan you the money without a down payment. You still have to work through a local bank or lending institution like Capital Bank, N.A., which actually makes the loan, but if you have good credit and meet the VA loan eligibility requirements, you are likely to get a very favorable loan.
VA Appraisals Help You Make Good Buying Decisions
The Veterans Administration also helps you in other lesser-known ways. For example, the VA appraises the house you wish to purchase to make sure that you are not overpaying in the current market. If your house appraises low and you want to go ahead despite the VA appraisal, you have to come up with the money for the difference between the appraised value and the selling price. The appraisal does not guarantee that the house is in good condition though; you still need to request a home inspection to uncover potential problems the house may have.
If you are buying a newly built home, the VA requires inspections to make sure that your house meets accepted construction standards and conforms to the plans and specifications noted in the VA appraisal. The VA does not supervise construction of your home, promise that the house is free of defects, or act as your lawyer in case of disputes with the builder.
VA Caps On Closing Costs
As with any loan, the mortgage loan you claim under your VA home loan benefits will have closing costs. The VA, however, does limit your charges to what is “reasonable” and “customary” in your local area. The remaining charges are paid by the seller or the lender. If you have little cash to apply toward closing costs, you can request that the seller pay some or all of your costs of to the limit allowed by law. You can also agree on a selling price that includes some of the costs, which usually means that you have increased your offer on the house to include the amount of charges you have to pay at closing.
Your VA home loan benefits allow you to purchase a home at a fair market price without coming up with much cash out-of-pocket. This is a great benefit if you are a first-time buyer who has not been able to save toward the purchase of a home while you were in the military.
Get Preapproved Now From Capital Bank, N.A.
To take advantage of your VA home loan benefits, you must go through a prequalification process that determines the amount that a lender like Capital Bank, N.A. will loan you. You must present documents about your current income, credit card and other debt, banking information, tax records, etc., so that the lender can verify that you are a good credit risk.
Capital Bank, N.A. wants to see you claim your VA home loan benefits! We not only are willing to take an active role in obtaining your COE, but we will guide you through every step of the prequalification process as well. We have loan specialists standing by to answer your questions or guide you through our easy to use online application form. Just call (866) 216-3577 to get the help you need to get the home you want.