NARRATOR: Navy Federal Credit Union. Home buying-- the VA loan process.
VA home loans are a great option if you're active duty or a veteran. Guaranteed by the Department of Veteran Affairs, they can be more affordable, with better rates, no down payment, and no private mortgage insurance needed. Getting a VA loan is a four-step process. First, pick a lender who offers them. Then, consider applying for financing before you start house shopping. That way, you'll know what you can afford, and the seller will know you already have financing.
During this part of the process, you'll need to get a certificate of eligibility, or COE, to confirm you're eligible for a VA loan. You can apply through the VA online, but many lenders, including Navy Federal, will handle this for you. Active duty members also need a statement of service signed by a personnel officer or unit commander. Veterans need a report of separation and record of service.
Now it's time for step two. You're ready to find the perfect house and make an offer. Make sure the purchase agreement your realtor drafts has a VA option clause. Then you won't be bound to the deal if the VA appraisal is less than the asking price. You can still buy the house if you want, but the clause ensures you won't have to.
Next, although not required, you'll probably want to hire a professional home inspector to check on things like the foundation, roof, plumbing, and heating before you buy. Finally, you'll need a VA-certified appraisal of the home. It will typically cost about $500. The appraiser will determine the value of the home, and make sure you and your lender aren't paying more than it's worth. To recap, find a lender, get financing, get your COE, find a home and make an offer, hire an inspector, get a VA-certified appraisal. If you're an active duty servicemember or a veteran, a VA loan can help make your dream of owning a home come true.
Our members are the mission. For more information, visit makingcents.navyfederal.org. Equal housing lender. This is not a commitment to lend, and conditional/subject to the verification and accuracy of the information submitted to Navy Federal. This video is intended to provide general information and shouldn't be considered legal, tax or financial advice. It's always a good idea to consult a tax or financial advisor for specific information on how certain laws apply to your situation and about your individual financial situation. NFCU, copyright 2020. Federally insured by NCUA.