VA loans are mortgage loans guaranteed by the United States Department of Veteran Affairs. In order to get one, you still need to apply through a private lender, but the VA is able to allow for more favorable terms for those who qualify. One big perk is that they can step in and help with negotiations if you were to fall behind on your mortgage payments or were at risk for losing your home. While there are many perks that come along with applying for a mortgage using a VA-backed loan, there are also quite a few misconceptions about the details. Don’t fall for these if you’re considering purchasing a home through use of a VA loan.
We’re not sure where this myth started, or why, but it takes about 40 to 50 days to close a VA loan, which is standard for any loan in the mortgage industry, regardless of financing. Just as with any mortgage loans, closing time will be reliant on criteria such as preapproval, repairs ordered and underwriting time.
The law limits how much of the closing costs can be paid by the veteran, but all of those costs are not charged to the seller. If that were the case, the veteran applying to purchase the home would be at a disadvantage over other offers.
As the loan is still coming from a private lender, these loan terms would also be determined by your lender, not the VA. That’s why it’s still important to shop around. Lenders often offer better terms when you’re applying with a VA loan versus a conventional loan because the lender takes on less risk when you are backed by the VA.
While these three myths aren’t the only ones you may run into, they are three of the most common. Be sure you are working with an agent who has had experience working with military buyers to assist in navigating this process.
Clearview Realty is experienced when working with VA Loans, and can help veterans and their families when navigating the home buying process. Give us a call today at 720-217-5731 to learn more.