First Time Home Buyers in Fayetteville NC using their Veterans Administration Loans…
There is so much information about buying your first home and what type of loan you are going to use is just the tip of the decisions that need to be made.
Here in Fayetteville NC, with Fort Bragg in our own back yard, tons of homes are bought using a Veterans Administration loans.
What does that mean? Well if you have served anytime in any of the armed forces and was honorably discharged then you are eligible to use your VA entitlement to buy a home! This is by far one of the most appealing ways to purchase a home especially to first time home buyers because it is 100% financing, Thats right NO MONEY DOWN! BUT there are still cost involved with buying a home and I will cover those a bit later…
One HUGE misconception from first time VA users is that you DO NOT get your loan FROM the Veterans Administration…. They are only backing your loan. In other words they are saying that you are a good candidate for the bank to loan you the money and they have your back. So you must still qualify to borrow money from the bank as you would if you were using a conventional, FHA, etc loan. You need to be in good standings and current on all your bills and have a good history of doing so.
The mortgage company that you choose will get your VA entitlement paper work for you and tell you exactly what you need to complete the loan.
There are a lot of companies on the internet that advertise like they ARE the VA, be careful they are not! And not every loan company is equal!! There are some that charge “junk fees” to give you the loan, etc. You need to be sure you are dealing with a reputable loan company/ loan officer that is going to be looking out after your best interest. I do have a list of companies here in Fayetteville NC that will treat you right.
Now back to those fees… This is where that money comes into play that I mentioned earlier. There is a cost of doing business in every field and banks and mortgage companies are no different. The thing is that the fees are kept to a minimum. Typically rule of thumb is about 3% of the purchase price will cover the “closing cost”.
In that money you will have typically a 1% origination fee from the mortgage company (can be a little less or more depending on the deal), you are going to have your pre paids to start you escrow account at the mortgage company. Lets just say 6 months of taxes and 6 months of insurance. Its like starting a savings account for your house expenses that will come at the end of the year. The mortgage company is going to pay those two bills, with YOUR money, to make sure that their investment in the home is taken care of! There will also be a credit app fee, flood certification fee, appraisal fee, etc.
When buying a home here in Fayetteville NC it is very likely that you can negotiate the seller to pay some of, if not all, of those cost for you. Then we come back to if they pay them all you are going to not have to bring little or no money to the table with you when you close.
I just closed on the other day that the first time home buyer using his VA got his earnest money back after closing because the seller paid ALL his closing cost. He was very excited about that, and it happens quite often if you have an agent working to get you the best deal possible!!
Now there are fees that you will have to take care of before closing and the would be the home inspection fee. The fee varies by square footage but I would not recommend buying a house with out having a professional home inspection done! They are very reasonable in the big scheme of things!! Just a few hundred dollars for peace of mind about the biggest purchase in your life!
So the recap is that if you have a steady income, pay your bills on time, have served in the armed forces and honorably discharged you can be just 30 days away from owning your own home!! Stop paying rent and put your money to work for you!! You can get so much more for your money today, you will be wondering why you rented for SO long!!
I can help you!! Call me today and lets get to work on finding you that little piece of the American dream that you and your family deserve! 910.987.0567 I look forward to serving you as well as you serve/ served our country!