Veterans may obtain VA mortgages provided by individual lenders but guaranteed by the VA. The guarantee protects lenders against loss up to a specific value if a homeowner forecloses on a property. With this guarantee, lenders can extend veterans features not readily found in other alternatives. The following is an introduction to the features of VA mortgages in North Reading MA 01864.
Features Of VA Mortgages In North Reading MA 01864
The best advantages of VA mortgages are the options for no money down and no mortgage insurance. Buyers can borrow up to the full purchase price, if the appraisal is sufficient and the particular mortgage company does not require otherwise. VA financing also enable veterans to buy a property by eliminating the additional monthly expense of mortgage insurance, which is traditionally included in mortgages with less than twenty percent down. Other important advantages are…
- Comparable closing costs to other types of loans.
- VA mortgages are assumable.
- No penalty for paying the loan off early.
- Ability to finance or lower the VA funding fee for the home loan.
Obtaining VA Mortgages
To qualify for a VA mortgage, buyers must fit several criteria. The first set involves their actual service – war served, type of service, and amount of time served. The second set involves the normal credit report and financial factors reviewed by mortgage companies. Veterans may contact any lender offering VA mortgages to determine eligibility and request a pre-approval.
With a pre-approval in hand, veterans may then start visiting listings within their price range. Once a property is found, an offer may be made subject to approval for VA financing. With a purchase contract, veterans will then formally apply for the loan and lock in an interest rate. Once the application is approved, a closing can take place. After closing, the VA is notified. Veterans can only have one current VA loan at a time.
This blog is merely a brief overview of the features of VA mortgages in North Reading MA 01864. For a list of companies providing VA mortgages, contact Scott Strang at Scott Gregory Group at 781-646-7600 or scott@scottgg.communityhomesforsale.com.
