Home Buying Process for Veterans

Where Does Cosan Homes Come in The VA Home Buying Process and

How Can Cosan Home Assist the Veteran?

Cosan is a Veteran owned and operated company focused on assisting the active military, Veterans, and Veterans’ spouses in their home buying process and enlightening them about the benefits of Energy Efficient Upgrades (EEU), for Energy Efficiency Mortgages (EEM).

Many people do not know that the EEU program is linked with the VA EEM program, they can include the cost of EEUs in their home loan amount or refinance loan while purchasing a home or refinancing it. This means the home buyers can include Energy Efficient Upgrades added to their home loan if the home qualifies during appraisal.

Cosan Home assists Veterans with Energy Efficient Upgrades after the initial appraisal value of the home is established.

Example: VA appraisal of the home is $250,000 and the selling price is $240,000, this means the Veteran may have up to $10,000 in energy efficiency upgrades to roll into the VA mortgage which will fall under the VA EEM mortgage.

You would not want to miss the opportunity to have new hurricane windows, doors, furnace/a/c, propane hot water tank, insulation, etc…

Understanding Veterans Administration (VA) Home Loan Benefit

Banks, mortgage companies and other authorized private lenders provide VA Home Loans. It is a program run by the United States Department of Veterans Affairs. VA offers a guarantee of the loan against the losses, which allows the lender, or the loan providers give the veterans a better loan on more favorable terms.

Eligibility to get a VA-backed Home Loan

To get a VA-backed home loan, one must… 1st Be a Veteran or Veteran Eligible Spouse

Meet the minimum standards of credit history, income, and other prerequisites

Live in the home that you are buying

Have a Certificate of Eligibility (COE). Here are the requirements to get your COE. If you meet all the requirements, you can apply for a Certificate of Eligibility.

Home Buying Process with VA-backed Loan

  1. The home buying process with VA-backed home loan begins with checking your requirements whether or not you qualify for the loan. Once you qualify for the loan, apply for it by clicking on the above-given link.
  2. Check your finances that include your current credit, income, expenses, monthly budget, and how much you wish to spend to buy the home. The following information will assist you in taking finances

VA-backed Home Loan Limits

About VA funding fee and closing costs

If you like, you can contact the Consumer Finance Protection Bureau (CFPB), which is always there to advise you the best.

Understand Loan Term Options and your Mortgage Calculator

  1. Choosing a Loan Provider

It could be a bank, a mortgage company, or a private loan provider to get a VA-backed home loan. Choose based on the interest rates you have to pay, their fees, the structure of their fee because all are crucial to consider in choosing the lender of your choice that meets your needs.

  1. Get a Real Estate Agent

Once you clear your finances and have chosen the lender, now pick a real estate agent to help you chose the right property in the right amount.

Ask for references from family and friends, check online for the real estate agents in the area where you want to buy the home. The local ones are the best. Understand their terms, the agent-buyer agreement, shortlist your choices, talk to them to negotiate your deal and pick one for yourself.

  1. Go for Home Shopping

Now that you have a home buying expert with you, go for home shopping within your price range. Look for facilities near the home. See if the market, medical facility, schools, your working area, and other necessities aren’t too far while picking a home.

Now that you have chosen the home, now let’s work closing the deal for you.

  1. The Purchase Agreement

The first thing you need to do is sign the purchase agreement that has the ‘VA option clause’ in it. Include the probable contingencies with recommendations of your real estate agent.

U.S. Department of Veterans Affairs has uploaded a helpful video for all the home buyers. Watch the video to have a more detailed idea of the topic.

Using your VA Home Loan Benefit with a Realtor and Lender

  1. Home Inspection and Appraisal

Before purchasing a home, its inspection is crucial to know the minor and major defects, if any. The house should meet the minimum property requirements (MPRs).

The next step is for home appraisal by the appraiser. It is the process of generating the opinionated value of the property. They see that whether or not the value of the property appraises the value that is high enough to get the loan. If it fails to rise up to the loan value, then the home buyer has a few options

The home buyer can request the real estate agent to reconsider the value of the property and develop suitable sales data that shows that the property is valued more than its appraised cost.

The home buyer can renegotiate the sales price of the house. For this, the homeowner has to be approached to lower the price so it matches the appraised value.

The home buyer can pay the difference generated in the appraised priced and the sales price. This, the homeowner has to pay at the closing.

Here are two more videos in that reference from the U.S. Department of Veteran Affairs: VA Home Loans: What are MPRs?

VA Home Loans: VA Appraisal Process vs. Home Inspection

Right after this phase, Cosan Homes comes in to link your EEU program with your VA EEM program. Talk to one of our experts today.

  1. Closing Closure

You will receive the closing disclosure from your lender at least 3 days before closing. It will include fees, loan terms, estimated monthly mortgage payments, and closing costs. Read the closing closure carefully. You may be required to provide more documents or information at this time.

  1. Deal Closing

On the day when you will close the deal, you will have to sign a lot of documents. The agreement signing may happen at a title company’s office, an escrow office, or an attorney’s office. Make sure you read all the documents carefully before signing them.

  1. You are ready to move into your new home.

These are the basic steps of every VA-backed home loan home buying process. If you need more assistance in this regard, you can always approach Cosan Homes.

Get in touch with Cosan Home representatives to know in detail how to get VA EEM Mortgage.