Veterans have use of VA mortgages provided by individual mortgage companies but guaranteed by the VA. The guarantee insures lenders against loss up to a specific amount should a borrower go into foreclosure. Because of this guarantee, lenders are able to give veterans options not readily found in other alternatives. The following is an overview of the advantages of VA mortgages in Newbury MA.
Advantages Of VA Mortgages In Newbury MA
The best advantages of VA mortgages are the options for no money down and no mortgage insurance. Veterans can finance the entire price of a home being purchased, that is if the appraisal supports the price and the individual lender does not have a specific mandate for down payment. VA financing also enable veterans to buy a home by eliminating the additional monthly expense of mortgage insurance, which is normally required in mortgages with low down payments. Other important advantages are…
- Comparable closing costs to other loans.
- VA mortgages are transferable.
- No pre-payment penalty.
- Ability to finance or reduce the VA funding fee for the home loan.
Obtaining VA Mortgages
To obtain a VA loan, veterans must fit several requirements. The first set involves their service – war served, nature of service, and length of time served. The second set includes the normal credit score and financial considerations by mortgage companies. Veterans can call any bank offering VA mortgages to determine eligibility and obtain a pre-approval.
With a pre-approval completed, veterans should then begin visiting homes within their price range. Once a listing is selected, an offer will be submitted subject to VA financing approval. With an accepted offer, buyers will then complete an actual application and lock in an interest rate. Once the application is approved, a closing can take place. After closing, the loan is reported to the VA. Veterans are only allowed one current VA mortgage at any given time.
This article is simply a brief overview of the advantages of VA mortgages in Newbury MA. For a list of mortgage companies providing VA mortgages, contact John Wells at Wellsco Realty at 978-518-1481 or email@example.com.