GUEST POST: Your Guide to VA Loans

Our guest blogger is Ryan Juliot (NMLSR ID#369051), Senior Mortgage Banker at Lake Area Mortgage, a Division of Lake Area Bank.  You can find his contact information at the bottom of the post.

In appreciation of the recent holiday I would like to talk a little bit about Veterans Affairs (VA) loans.  VA loans are government guaranteed loans that offer Veterans excellent financing terms for their home mortgages.  These loans require no down payment and do not carry any monthly private mortgage insurance (PMI).  VA Loans also typically offer lower interest rates than standard conventional financing.  VA Loans generally require an upfront funding fee; but this fee can be rolled into the financing, and is waived if the Veteran has any percentage of disability.   

Eligibility requirements change depending on the time period in which the Veteran has served and which branch of the military they served in.  If the Veteran is currently on active duty they will need 90 days continuous active duty to qualify. There are exceptions if the Veteran was enlisted but did not serve on active duty and for spouses of Veterans.  If the Veteran has served in the National Guard or were a Reserves Member they must have six years of service.   If the National Guard or Reserve Member has been called up to active duty they may be eligible for a VA loan before the full six years of service.   

These are just a couple of the many different ways a Veteran can qualify for a VA loan.  If you are interested in seeing if you qualify for a VA loan or would like more information please call me direct at (763) 607-4339 or email me at rjuliot@lakeareamtg.com. 

Thank you to all those who have served and those who are currently serving.  Your sacrifice and bravery do not go unnoticed.  You are the true heroes and I am honored to help you reach the American dream that you have fought so hard to protect.

Lake Area Mortgage, A Division of Lake Area Bank is Member FDIC and an Equal Housing Lender.

What To Expect When Buying a Foreclosed Property

Although the number of foreclosed homes for sale has fallen dramatically over the past year, they are still out there and can oftentimes represent too good of a deal to pass up.  However, buyers should be aware that purchasing a foreclosure is quite different than purchasing a traditional (non-distressed) home.  Here is a list of things to be cognizant of when purchasing a foreclosed home.

• All foreclosed homes are sold "AS IS".  You'll see this in writing approximately 10 times when you are submitting your offer - the foreclosing bank does not have knowledge of the property or its condition, and thus cannot make any warranties to the buyer. 
• Banks do not operate on the same time-frames as we do.  Working with banks can be frustrating.  Expect delays, misdirection, poor communication, etc...  Buying a foreclosed home takes a fair amount of patience.
• Utilties.  One of the most difficult aspects about purchasing a foreclosed home relates to the utilities.  Oftentimes the bank has the water (or gas or electric) shut off, which poses a serious issue for the buyers' inspection and appraisal.  The appraisal piece is particularly important - there are (essentially) no lenders that will loan money on a home without being able to verify that the home has running water.  Make sure your agent looks into this.
• Paperwork, paperwork, paperwork.  Most foreclosing banks use their own purchase agreement to facilitate the sale of the home.  They do this for an obvious reason - they sell houses in 50 different states, each which uses it's own state-approved forms (for example, our Minnesota forms are approved by the Minnesota Association of REALTORS).  Make sure you understand what you are signing, as the forms will differ from the paperwork you might be used to seeing.

This is far from all-encompassing, but should give you some ideas as to what to look for when purchasing a foreclosure.  And of course if you want more detailed/specific information, you can always contact me at josh.pelto@remax.net or (763) 213-4617!

Another Client Testimonial!

There is nothing better than closing a home sale and having extremely pleased clients.  I recently helped a family friend purchase a home and received a heartfelt testimonial from her.  She's happy, and because of that I'm also happy!

Here's the testimonial:

"Josh - Words cannot express the depth of my appreciation for all you've done.  This is more than just buying a home - it's truly make a dream come true for me and I couldn't have done it without you!"

 Selling real estate can be stressful and problem-filled, but kind words like this make it all worth while!