Using your VA Home Loan Benefit: Working with a Realtor and Lender
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Using your VA Home Loan Benefit: Working with a Realtor and Lender


[upbeat music]>>Text: Should I Find a Lender or a Realtor First?>>Text: Mark Connors,
VA Home Loan Guaranty Service>>Speaking: One of the things that you want to do, and you can ask, well, ‘What do you do first? Do you go to a lender first or do you go to a realtor first?’ The reason that I would recommend going to a lender first is that, say, for example, I did not do that, but rather I went with a realtor; and I tell the realtor, well, ‘I would like to start looking at homes in the $200,000 price range,’ and I may spend a period of several days or a couple weeks looking at homes at the $200,000 level. If then I go see my lender, my lender says, ‘Well, Mark, congratulations. You have good credit and you qualify; however, because of your debt and because of your income, we’re only going to be able to qualify your for a home in the $175,000 range,’ I’m never going to find that dream home that I found in the $200,000 price range. Speaking of the lender, what I would also strongly encourage Veterans to do is to get preapproved with your lender. Now, there are two different types of approval; one is referred to as prequalification, the other is preapproval. The difference is that the prequalification is based on nothing more than a discussion that you have with your lender. The lender is not substantiating any of the income that you inform the lender that you have, nor are they pulling your credit. With a preapproval, what that does is that gives the lender the actual documents, your income documents, perhaps your W-2, perhaps your tax returns; they pull your credit; and so they’re able to tell you, with a pretty good accuracy, how much of a home that you can afford; and I think also in today’s market you’re going to find that most realtors are going to strongly encourage you to get preapproved prior to looking at homes as well, and just as I recommended interviewing a couple different lenders I would recommend you do the same thing with the realtors. Interview a couple different realtors and find one that is familiar with the geographical region that you’re wanting to purchase in. You’ll be able to find out from the realtors what the school districts are like. They’ll be able to answer all your questions and guide you to the home that you want to purchase.>>Text: TO LEARN MORE ABOUT
VA’s HOME LOAN GUARANTY Program, VISIT www.benefits.va.gov/homeloans

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