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We know that current market conditions turn mortgage loan approval a difficult task. However, VA loans contribute to make things a lot easier. But, why are VA loans so special? What are the advantages you can obtain by applying for a VA loan? Following is a brief explanation of VA loans, the benefits they provide and the conditions required for getting approved.VA Loans Are Easy To GetAs opposed to regular mortgage loans, VA home loans are fairly simple to get. The requirements for approval are not that harsh and most importantly, pre-approval is as simple as it can be thanks to the provision of the certificate of eligibility. Though the rest of the requirements for approval are similar to regular home loans, this certificate of eligibility will speed up the process and eliminate most obstacles from the path towards the propertys purchase.To obtain a certificate of eligibility you need to contact your local Veteran Administration Office. Once you have your certificate of eligibility, you can find a lender (it needs to be approved by the Veteran Benefits Administration). The approval process will then require three more steps: the appraisal, the credit check and the income review. These three steps are also simpler for Veterans than for regular mortgage loan applicants.Appraisal Process ExplainedThe appraisal process requires the assessment of the property that the applicant wants to purchase to compare the value of the property with the purchase price and the loan amount that will be required. An alternative to this process is the program known as Lender Appraisal Processing Program. These pre-appraisal will let the lender issue a loan according to the pre-defined valuation without further steps.Credit Verification ProcessThe credit assessment will not determine approval but will determine the interest rate that you may have to pay and the rest of the loan terms. The credit verification process on VA loans however, will be significantly more simple and less time consuming as a simple credit report pull will be enough. No further checks or financial verifications will be required for approval of your VA mortgage loan.Income Assessment And RequirementsThere is no doubt about the fact that your income needs to be assessed in order for your VA loan to be approved. But even though that VA loans require proof of income just like all types of loans, truth is that since VA loans are guaranteed by the veteran benefits administration, the income requirements for approval are not as harsh as those of regular mortgage home loans because this variable is also affected by the risk of default which is almost absent (for the lender) with VA loans.No Down-payment or Private Mortgage Insurance On VA LoansAnother advantage that VA loans imply is the fact that regardless of the amount of money you put down for the purchase of the property (and even if you do not make any down payment) your loan will be approved and the interest rate will remain unaltered. VA loans do not require money down for approval and the lenders will finance 100% of the propertys purchase price.Moreover, private mortgage insurance (that can turn mortgage loans really costly due to the insurance premium and other costs) is not a requirement either. This is also due to the fact that the Veteran administration guarantees the repayment of these loans.
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