Veterans all across the country have been taking advantage of the benefits offered through a VA loan. In most cases, VA loans save the home buyer quite a bit of money in the long run. Whether it’s avoiding a down payment, refinancing the entire value of your home or just simply having an easier time qualifying for your mortgage, servicemen and women should take advantage of this big benefit that they’ve earned.
One of your first steps in pursuing a VA loan is getting either pre-approved or approved for a specific amount so you can begin your house hunting. Have you ever wondered what the difference is between a pre-approval and an approval? During our VA Loan Q&A Google Hangout with the Department of Veterans Affairs, Military.com and the National Association of Realtors, we discussed the benefits of being completely approved before you put in an offer on a home.
Clayton Closson, team member at Quicken Loans and multiple-time recipient of a VA loan, explained that Quicken Loans offers a program called “Mortgage First” that approves you for an amount that’s valid until you put in offer on a home, provided your finances stay the same.
Programs like these that offer complete approval are something to seek out. According to Nick Mannis of the National Association of Realtors, it’s important to do things to make your mortgage and home-buying processes faster, more efficient and smoother. He explained, “When you’re presenting the offer, and you show that letter that says, ‘My veteran is not just pre-approved, he’s actually approved.’ I think that’ll be a lot stronger than some of the other offers presented.”
In short, approvals are more efficient and often taken more seriously than pre-approvals. Regardless, many sellers will require that you have a letter with an official pre-approval or approval, as opposed to a pre-qualification.
Check out the video below for more information!