Real Estate Agents Can Minimize Much Of The Stress In The Va Home Buying Process

The VA home buying system was created by President Franklin D. Roosevelt in 1944. The main function is to eliminate the need for military veterans to have a down payment to purchase a home. Real estate agents are well-informed on the guidelines to apply for and qualify for these loans. Now known as the GI Bill, these loans can be financed at a fixed rate for 15, 20, 25, or 30 year periods.

Veteran's mortgages are available to all individuals who have served the required amount of time in any branch of the US military. The Department of Veterans Affairs guarantees each VA home buying loan. The real estate agent will assist in the search for any single family residence of a veteran's choice. This includes a townhouse or condominium in a VA approved project, and single family homes. An experienced agent can identify these approved properties.

VA home buying loans can also be used to build and improve or remodel a home. They do not have a prepayment penalty which means they can be paid off in advance of the contracted agreed upon time length. They are also assumable, which means a VA qualified purchaser can take over the payments of a previously existing loan of this type.

Real estate agents are knowledgeable about the specifics of these as well as other types of mortgage financing. The other type plans include FHA, conventional, and jumbo loans. Conventional loans are classified as fixed rate for 15, 20, 25, and 30 year terms. The interest rates on these mortgages remain constant for the full term or life of the financing period for which it is contracted on the day of closing. Real estate agents will guide the purchaser through the entire purchasing process.

Conventional mortgages also exist in adjustable rate formats which means the interest rate can change at different points during the life of the financing period. These changes are based on weekly average yields on US treasuries. These changes are explicitly explained by the real estate agent and mortgage representative. Jumbo fixed rate home financing programs exist for mortgages that will be greater than $333,700. There is a greater risk to the lender with these larger mortgages so they can carry higher interest rates. These rates are fixed for the contracted length of time.

The government backed loans available to civilians are FHA which are available as balloon, construction, bridge and equity, large property, self-employed income, specialty products for lower down payments, credit solution loans for credit issues, and down payment options, among others. Knowledgeable real estate agents can guide a purchaser through any financing process with their expertise or that of other industry professionals. A purchaser can depend on receiving advice during all phases of their home buying process.

By: Jeremy C. Winters

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