Getting a VA Mortgage Des Moines Is Often Worth the Effort It Takes
Mortgages from the Veterans Administration are popular with families planning to buy a home for several different reasons. These loans are an excellent option for active duty, retired and former military personnel who have served the United States over the past several decades. People who get a VA Mortgage Des Moines aren’t required to have a down payment and don’t have to carry private mortgage insurance (PMI), which can cost thousands of dollars each year. VA mortgages are available from a number of mortgage companies and financial institutions, making them an excellent option for millions of homeowners.
There are a few drawbacks to obtaining a VA Mortgage In Des Moines, however. The VA doesn’t freely loan the money, instead requiring borrowers to pay a one-time funding fee at the start of the loan period. The fee has been set by Congress at between 1.5 and 3.0 percent and depends on several different factors. First-time borrowers, active-duty soldier or reserve personnel, and borrowers making down payments pay different funding fees. Interest rates on VA loans aren’t set by the government but instead are driven by lenders. Military personnel may be able to find a private mortgage with a better overall financial deal, but shopping around is always the best option.
As with most other private mortgages, the process of obtaining a VA home loan can be a complicated, time-consuming process. The potential borrower must first gather documentation needed for the loan, which can mean the difference between getting or not getting a VA Mortgage Des Moines. The Veterans Administration requires a mortgage applicant to prove that he’s eligible for a VA home loan and that his finances can handle a mortgage payment. He’ll have to show that he is an active-duty soldier or that he has been discharged from the military and prove his salary and creditworthiness. All of this documentation is used in the pre-approval as well as the official mortgage approval processes.
Once he’s been approved for a mortgage, the VA lender will work with the potential home buyers to ensure that the home he’s considering meets VA minimum standards. These standards help the mortgage holder avoid getting stuck with a property that constantly drains money from his bank account. Once the borrower and the property meet the VA’s exacting standards, the home mortgage can be approved. A family will soon be able to move into its new home.