Many of us do not know how much information actually goes into applying for home loans until we are actually doing it. Many of the frustrations that a lot of people encounter have to do with the fact that a lender or a mortgage broker calls them every day and asks for more information. It can be a difficult thing to stop what you are doing and go find the information that is needed. If you go into the application process knowing what you will need or what you could need you can get all of these things together before you apply for one loan, which will save you time, energy, and perhaps even a bit of stress!

Home Loans: What You Need

When you start applying for home loans you will find that you are asked for every piece of personal information you would have never thought about sharing with a stranger. It can be a bit uncomfortable when you start the process, especially if you are not a millionaire or if you have had credit struggles in the past. A good thing to remember is that lenders and mortgage brokers have seen it all and chances are they have seen worse than they will see with you. Also, remember that any questions that they ask are not personal, they are just trying to help you get approved for any loan that you apply for!

Some of the obvious things that you will need to provide a mortgage broker with when you apply for home loans are your full legal name and the names of any co-applicants, your date of birth, and your social security number or your taxpayer identification number. You may be required to provide a copy of these cards, so you might save yourself some time if you just make a copy of these cards beforehand so you have them to pull out and hand over if they are requested.

Other pieces of information or documents that you may need to provide someone with when you are applying for home loans is bank statements and pay check stubs. You will want to provide your most recent bank statement as well as your paycheck stubs, so just put these in a folder when you receive them so you can easily reference them or make copies if needed. Other documents that you may need include the previous year’s taxes and letters of credit. Many times people need to work to find their tax information and they get stressed when they are asked for it. Letters of credit may also take a week or two from the time it is requested, depending on the source of the letter so you may want to take some time to request these letters of credit before you actually begin applying for your home loans.

As you can see, when you apply for home loans there is a lot of personal information that you will need to provide your broker or lender with. You may have to spend some time on the phone with someone to explain certain things or answer other questions, but generally a lot of work can be done via computer or even by fax if they have copies of these documents. Taking all this information together before you start is a good idea because it would make answering questions and providing information as simple as possible for you.

Veterans are afforded a great deal of loan opportunities from the federal government for their service in helping to protect the United States. The VA home loan program was established to help veterans, particularly those purchasing their first home, finance an affordable home.

VA Home Loan Eligibility Requirements and Facts

In order to receive a VA home loan, an individual:

• Must be an active duty member of the military or have been honorably discharged.

• Apply for a VA loan through a mortgage lender.

• Secure a Certificate of Eligibility from the VA by completing all necessary paperwork.

• Show proof of military service, such as an original statement of service if still in active duty or a copy of DD Form 214, Certificate of Release or Discharge from Active Duty.

Other important regulations veterans should be aware of are that unmarried spouses are eligible for a loan if the veteran died during active combat or as a result of a service-related injury. However, children are not eligible for a home loan. Basic entitlement for a loan begins at $36,000, but entitlement does not guarantee that a lender will give an individual a loan. If a lender denies an individual a loan, they should seek out another lender. Also, in order to secure a VA Guaranteed Home Loan, the veteran must purchase the home for themselves and plan to live there, and the home must also be purchased in the United States.

VA Home Loan Advantages

There are several advantages to receiving and using a VA loan in order to purchase a home. These include:

• No down payment is required in most cases and closing costs may be lower – a major plus, as closing costs and down payment are the largest expenses when purchasing a new home.

• The right to prepay without a penalty.

• No mortgage insurance premiums

• An assumable mortgage – meaning that the buyer of the home can take over the mortgage should the veteran decide to sell it.

• A veteran can use a VA refinance loan to refinance an existing VA loan at a lower rate.

These are all of the factors that make VA loans an attractive option for active and honorably discharged veterans looking to purchase home.