Applying for a Veterans Affairs Loan

By: , Veteran Realty Services - Everett, Inc.
& , Hallmark Realty Corporation

In robust areas of the real estate market, it's very important for buyers to have their funding in place and their Pre-approval Letters in hand before making offers on real estate transactions. To prepare for unforeseen opportunities, it's best to have already consulted with the lender you are planning to use for your purchase.

Veterans Affairs (VA) financing differs from conventional financing in the following ways:

• The Buyer must have received an honorable discharge from military duty (completion of 6 years of service for reservists).

• The roof of the property must be certified as having a minimum economic life of five (5) years.

• The house cannot have any evidence of lead-based paint. If chipping is visible on or near, the home, a test for lead-based paint may be required.

• Special provisions essential to your Purchase & Sales Agreement are located in the Financing Contingency (Form 22A). You should familiarize yourself with the language and terms of this document. Any questions you may have should be directed to your real estate agent, lender, or attorney (for legal advice). The Form 22A provisions specific to VA loans can be found on Page 1, Paragraph 1, and Page 2, Paragraphs 6, 7, and 8.

• VA loans require the Seller to pay 100% of escrow costs.

• Down payment (Buyer's equity) is not required.

• The lender must be "VA Approved/Certified."

The Department of Veterans Affairs is progressively moving to hasten the approval of home loans. However, to expedite your loan process, it's helpful to have the following documents with you at your initial meeting with your VA Approved/Certified Lender:

• DD-214 (Department of Defense Form 214) or Certificate of Eligibility

• Last paycheck stubs for parties involved in the transaction

• Bank statements for the last two months

• W-2 forms for the last two years

With these documents, your Lender will be able to determine the amount you are qualified to borrow. For more specific information regarding VA financing, contact your local Department of Veterans Affairs office or visit its web site.

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