Home loans for veterans have been on the rise in Prescott over the last couple of years and according to Jeff Wilson, a VA loan officer for the Phoenix VA regional loan center that number is predicted to triple in 2017.
The VA loan is a mortgage loan guaranteed by the U.S. Department of Veterans affairs (VA). Originally known as the Servicemen’s Readjustment Act which passed in 1944 it extended a variety of benefits to Veterans including guaranteed home loans. To date over 20 million Veterans have been insured for a home loan by the U.S. Government.
The VA loan program was initially available only to those who had served in active duty during specified times. In1992 it was expanded to Reservists and National Guard who served at least six years honorably.
A home loan for Veterans is easier than you would expect, as a matter of fact Veterans can often skip the minimum 60 day process and be prequalified in a short amount of time as well as approved for a loan in as little at 20 days according to Jeff Wilson.
Benefits to getting pre-qualified
- Getting pre-qualified for a given loan amount allows you to shop for a home with the comfort of knowing your price range
- Once you have found the home of your dreams being pre-qualified can also speed the process of obtaining a mortgage
- Pre-qualification gives you an advantage with agents and sellers when you submit an offer over those who aren’t as you have demonstrated that you are a determined and qualified buyer
- Proof of pre-qualification is required with the submission of the Arizona Residential Purchase Contract. A residential purchase contract is simply your offer for the home and again, prior credit approvals can expedite the closing of your loan
Home loan pre-approval
Pre-approval to buy a home requires more detailed information from both you and outside sources which is necessary to complete your loan. Once the information has been gathered it is then submitted to an underwriter for review of all of the documentation. An underwriter checks over the figures and makes sure that all of the documentation is in order before deciding on an approval.
If the Underwriter issues an approval of your loan with additional conditions to be met, it is considered approved; however, the outstanding conditions will need to be satisfied before your loan is considered fully approved. Once the pre-approval process is complete, you will be given a letter that is typically valid for 60 days stating that you have been pre-approved and the lender is willing to give you a loan.
Want to learn more about getting pre-qualified or pre-approved for a VA loan in Prescott? Contact Kathleen Yamauchi Group Real Estate or call 928-771-1111 to get started today!