Mastering the VA Loan: Serving the Dream of Homeownership to Those Who Serve Our Country, Part 1 of 3

By November 7, 2019Mastering the VA Loan

Hello! I’m Casey Cunningham, the CEO and Founder of XINNIX. As the wife of a military veteran, I have a special place in my heart for those who serve.  As a mortgage professional of 30 plus years, I have always loved the fact that our profession has such a positive impact on people’s lives. It is incredibly gratifying helping people reach the American Dream…even more so when it is for those who have served our country, sacrificed time away from their families and quite often risked their own lives for our freedom.

It is a privilege that we can serve this military group with the VA loan program as it is available to assist active-duty military personnel, reserve members, veterans, and their families to purchase a place of their own to call home. What’s more, it offers incredible benefits such as zero down payment and no monthly mortgage insurance requirements. For the Loan Originator, VA loans come with unique guidelines, disclosures and pricing and requires a little effort to learn. In my mind, this extra effort is a small price to pay when considering the sacrifices made by our veterans. Over the next three weeks, I’ll be highlighting three areas ways that mortgage professionals can gain confidence in presenting the VA program, and therefore better serve the brave men and women who have served our country.

Understand Your Products and Options

As a sales professional, understanding your company’s loan programs is crucial for creating the best customer experience. Most companies offer VA loans, but processes can vary from company to company. It’s important to study up on the VA loan guidelines, including any company overlays. It’s also critical to familiarize yourself with VA regulations and housing laws in other states in case they differ from state(s) in which you originate. Knowing these guidelines and regulations inside and out will give you more confidence in presenting the VA loan program as an option that they are eligible for and may best fit their needs.

A major challenge in working with the VA loan program is the stringent appraisal process. There are very high standards when it comes to a VA appraisal, and this can be intimidating to both a seller and a borrower. Our military personnel are vital assets to our country, and our government puts these precautions and regulations into place to protect our military and their families which is why strict minimum property requirements (MPRs) are built into the process. Home repairs required to meet the MPRs can be costly and may deter sellers from accepting an offer with a VA loan attached to it. Luckily, there are several companies who provide VA renovation loans, which can provide up to $35,000 toward repairs that need to be made to bring the home up to the MPRs set by the VA. Brushing up on all of the options available to your borrowers is incredibly important and can even prove to be critical to a successful loan closing.

The largest problem loan officers face when dealing with the VA Loan Program is a lack of knowledge, which is entirely understandable! The additional regulations and guidelines that come with the program aren’t widely known even to veterans. That’s why our ORIGINATOR™ Program for new loan officers trains on the VA Loan Program. Seeking professional development and training is critical to help you understand the ins and outs of our business. I hope you found this to be insighful, and I invite you to join me next week as we discuss how building an “A Team” can help you master the VA Loan!

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