Here’s 3 Steps To Getting a Military Loan
Originally posted on https://www.nbc-2.com/story/40591344/heres-3-steps-to-getting-a-military-loan
Serving in the military can involve a number of big sacrifices and challenges. No one makes the promise that military service is going to be easy, and many brave men and women go through a lot to protect the freedoms of those in the United States.
Fortunately, this service comes with a number of benefits as well. For example, military members are able to apply for loans only available to themselves and the other men and women in uniform.
These loans can help our bravest get through their toughest financial times, both during and following their period of service. Read on, and we’ll walk you through what you need to know about applying for a military loan.
1. Understand The Types Of Loans
There is more than one type of loan a member from the military can take out. In fact, there are a few different varieties. Military families can take out student loans for their college studies, home loans, auto loans, and even personal loans.
Student Loans For Military Members
There are many military members who are attempting to get their children through school. There are even military members who want to go back to study following their service. There are loans that can help with both of these goals.
There are many different varieties of financial aid that are available to dependents of military service members. These dependents can include children, stepchildren, and spouses. There also many military scholarships that seek to help veterans pursue their futures following service.
When it comes to loans, there’s also more than one option for military members. Military families can take out federal student loans just as anyone else in the country does. But they can then help pay off this debt via military forgiveness programs or can defer payments during times of active duty.
Military families can also look to private lenders when it comes to student loans. These loans might vary greatly in terms of benefit depending on where you look. But there’s one over-arching benefit available to all military members and their dependents.
Thanks to the Servicemembers Civil Relief Act, all private lenders MUST, under the law, offer a 6% discount on student loans to military members.
Home Loans For Military Members
Buying a home is one of the biggest investments most families make in their life. Military members can help work through this huge investment with the help of a VA-guaranteed loan. This type of loan guarantees a portion of the loan will be covered by the United States government.
This allows veterans and active service members far more favorable terms when working with money lenders. For example, with a VA loan, a military member will not need to put an expensive down payment down on their new house. This in and of itself can be a huge financial relief.
VA loans also don’t need mortgage insurance. Most lenders require such insurance from most home buyers as a form of security. But because VA-loans are backed by the government, the need for insurance is much lower.
2. Qualifying For Military Loans
Even if you’re an active service member, you’ll still need to get together a few items and prove yourself in order to get loans from private members. If you plan to get a loan in the future, it’s a good idea to work on increasing your credit score.
Even with government backing, it can be hard to secure military loans with a bad credit score.
Depending on what your loan is for, get together the proper evidence and paperwork. If you’re applying for a personal loan to start a business, for example, consider putting together a detailed business plan. Whatever the case may be, you need to secure the lender’s confidence as much as possible.
What you’ll need to apply for a loan will depend on what kind of institution you plan to go through. Banks, online credit unions, and private lenders all have different requirements for what kind of presentation they’ll want to see.
No matter where you go, ensure that you bring proof of your military service. This will be essential in securing the benefits and discounts you need and deserve.
3. Finding Military Friendly Lenders
Once you’ve started your search for a lender, try to find those that will help to benefit you. For example, let’s pretend you are looking for a lender for a home loan.
When looking for a lender, you’ll need to find one that is VA-approved. Working with a lender that understands the VA loan process is essential, and you should steer clear of anyone that tries to push you away from utilizing the program. The VA loan program is no more complicated than any other loan process, but some realtors and lenders are not familiar with how it works.
If you need assistance in finding lenders, the employees at the Veteran’s Association may be able to help. There are many services that aim to help connect veterans with lenders looking to help veterans or even active service members.
Once you’re connected with the proper lender, you can submit your documents and application and hopefully have a loan ready to take home soon.
Securing A Military Loan For Your Future
It’s no secret that military life can put some tough financial constraints on a family. But applying for a military loan can help relieve this pressure and open doors for a family’s future.
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