Today we analyze VA loans, and what they mean for you.
A VA loan is a mortgage loan you can receive from the U.S. Department of Veterans Affairs. You must be qualified to receive this loan by being an American Veteran or a surviving spouse of one. This loan was designed specifically for these Veterans and their families to help them with long-term financing. This can make a big difference here in the North Country with Fort Drum and lots of military families in the area. If you are eligible for one of these loans, a down payment is unnecessary. Another benefit to these loans is the fact that they don’t require mortgage insurance, unlike other conventional loans.
Although these are wonderful benefits to these loans, there are significant processing fees that you must pay. The fees can vary from bank to bank but are usually decently expensive. It is important to speak with your financial adviser and do research on how much the fee will cost you depending on where you are and which bank you are affiliated with. Locally, you can meet with Watertown Savings Bank Monday through Saturday to discuss these fees. Interest rates and APR financing can still depend on your credit score for the VA loans. Be sure to be aware of your debt and any credit assets that you may have. It also can depend on the credit union you are a part of such as Navy Federal Credit Union and USAA. Market conditions and the length of the loan also has a strong effect on the rates you receive.
When you acquire your contract for the VA loan, there are some other cautions you may want to take. This includes not taking on extra debt like a car payment, or taking on a new job with different pay and benefits. Be mindful of paying bills on time and not changing banks or moving money around. With more advice and guidance from our agents here at BridgeView, VA loans should be easier to navigate and won’t be intimidating!