Posted on: 1 February 2021
If you are interested in purchasing a home but you are not sure about what lending options you should consider, you should look into VA mortgage loans if you qualify. To learn about some of the advantages of VA loans, you will want to go ahead and read through the following.
No Down Payment Required
One of the biggest struggles for a lot of people is coming up with what lenders of traditional loans require for a down payment. While you may get away with a small down payment, that can still be thousands of dollars that you just don't have, and some lenders do not want you borrowing the money from anyone to get the down payment. Thankfully, with the VA loan, a down payment is not required in order to secure the loan. If you do have some money saved up, you can simply use that for your moving expenses or getting the house updated a little before you move in.
Mortgage Insurance Is Not Required
With the VA loans, you are not required to have mortgage insurance tacked on to your monthly payment. This is because the VA loan is backed by the government. Not having that mortgage insurance as a requirement could save you hundreds of dollars a month. After all, the higher your principal and interest payments are, the more your mortgage insurance is going to be.
The Closing Costs Are More Affordable
Even though you will not have to provide a down payment, you will still need to consider the closing costs. Of course, these will be easier to cover since you do not have to give a down payment. Also, the total of the closing costs will be much more affordable than the closing costs associated with other types of mortgage loans. The exact amount you will have to pay towards the closing costs will vary depending on the local and state fees, along with the deduction of any amount that the seller might be contributing. There is always the possibility that your real estate agent could get the sellers to totally cover the closing costs, leaving you with nothing to pay out at the time of the closing.
If you qualify for a VA loan, you will want to go ahead and start talking with lenders that can set you up with this type of mortgage. Get your pre-approval soon so you can begin your search for the perfect home.Share