VA Loans Blog

For Your Security

February 4th, 2017 6:24 AM by Joan Rusco

A VALoansMN mortgage can be viewed as a security blanket for your family. Why?  Because it protects you in so many ways. Let’s start from the time you decide you need to purchase or refinance your home.  

Any Minnesota or Dakota Veteran has already set themselves apart. VA Loans are only available to Veterans. There’s a reason the federal government has set aside this benefit for you. It is a special loan with special protections. These protections are available to no one else.  Before you go house shopping give VALoansMN a call. Let us get you prequalified. This carries a lot of weight when you begin negotiating. Sellers like to know their buyers are ready to make the move. Now, back to the protection issue.

When you make an offer on a home it is customary to put down some “earnest money”.  There’s no set rule on how much that must be but the more the earnest money the more serious you appear to a seller. Many realtors recommend about 1% of your offer. But wait, can’t I use a VA loan for 100% of my purchase price?  Doesn’t a VA loan allow me to buy a house with no money down?  The answer to both these questions is yes. So then, you might ask, what happens to that earnest money a realtor recommends I put down when I make an offer? Once your offer is accepted the selling real estate agent will put that earnest money into a trust account. There it will sit until the day you sign the closing papers and buy the house. The title company will then cut you a check and refund your earnest money if you use a VA loan for 100% of the purchase price.  There are some exceptions.  If some of your closing costs are not covered in the loan or by the seller, then that earnest money might go toward those costs.  But, what if you put down some earnest money and then the deal to buy the house falls through.  This is where the protection comes in.  

When the VA guarantees your loan, they require that any earnest money or down payment you make toward a deal that falls through must be returned to you, no matter what.  If you decide you don’t like what a home inspector found and decide not to buy you get your money back. If, for some reason you are unable to qualify for your mortgage loan, you get your money back. You are protected by a loan from VALoansMN. You are much more protected than the average home buyer. But, as they say on tv, wait, there’s more!

You are also protected against high fees in the mortgage process.  We at VALoansMN are very familiar with the VA requirements that keep your fees low. That’s one of the reasons we are the number one VA Lender in Minnesota.  

Remember, when you choose to take advantage of this benefit you earned by giving your country service, you are entitled to these protections offered only to Veterans.  We want to help you in any way we can. Don’t hesitate to give us a call so we can talk about making this work for you.


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