VA Certificate of Commitment
When a veteran uses the VA Home Loan Guarantee Program they get a valuable benefit that allows them to purchase a home when they otherwise might not have been able to. The program offers veterans the opportunity to purchase a home with no down payment, and little to no out of pocket closing costs. The VA offers veterans this valuable benefit, but there are certain requirements to participate in the program.
Once a veteran has gone through the steps of proving their entitlement with a Certificate of Eligibility, finding a VA approved lender, getting pre-approved for a mortgage loan, finding the home they want to purchase, getting the appraisal, and having all of the necessary inspections done, the VA will issue a Certificate of Commitment. This Certificate of Commitment goes directly to the VA approved mortgage lender and is the paper form of the guarantee on the veteran's new loan. The Certificate of Commitment is worth the amount that the VA guarantees on the home in case of default or foreclosure.
The VA Certificate of Commitment includes:
- The purchase property address.
- The lien on the property by the mortgage company and the VA in the case the veteran defaults on the loan and the guarantee is paid to the lender.
- Assurance that all insurance and other regulations required for VA Home Loans have been followed.
- Assurance that the veteran homebuyer will comply with all rehabilitation and other conditions on which the loan was issued for the purchase property.
The loan, the lender, and the veteran must all be proven eligible to the VA, and all of the required paperwork and home inspections must be completed and satisfy VA requirements before a Certificate of Commitment will be issued. Once a Certificate of Commitment is issued it is good for six months. This means that if the closing of the loan takes longer than six months, then the lender and the veteran will need to request a time extension in writing to the VA explaining why the loan has taken an excessive amount of time to close. Then the VA decides if the extension will be granted or if the veteran will have to go through the VA Home Loan Guarantee process all over again.
Get Started With Your VA Loan Request
Take the first step toward your VA loan by getting in touch with a VA specialist.
The best thing a veteran can do is to make their mortgage loan closing a smooth timely process so that they will not have to worry about their Certificate of Commitment expiring.
See a related article: Lesson for Vets: Use the VA Loan Program
VA LOAN SPECIALISTS
We are the online VA loan specialists. It is our goal to ensure that your VA home loan process goes as smoothly as possible. Let us help you get the process started today online, or call us at 800-405-6682.
HAVE A QUESTION?
If you need advice concerning Veteran Home Loans, feel free to contact a VA mortgage specialist online or call 800-405-6682. Specialists can help determine whether a Veteran Home Loan is the best financial decision for you.
