Introduction

Since the end of World War II more than 14 million veterans have bought homes with the aid of VA loans. The great majority of these veterans have bought soundly constructed homes and are now making regular payments on their mortgages as satisfied homeowners. However, a very small percentage of these veterans have had just cause to be dissatisfied with the outcome of their venture into homeownership. It is hoped that this section, by stressing the important things that a prospective homeowner should know, will help to reduce the number of these cases in the future.
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The Cost of Homeownership

One of the common errors made by people buying homes is to think that the only cost will be monthly payments of principal and interest on the mortgage. It is important to keep in mind that there are other items which have to be paid which add up to a substantial outlay. Before you buy, be sure that your income is sufficient to cover all of the cost which you will have to pay.
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Equal Housing Opportunity

Discrimination in the sale of housing because of race, color, religion, sex or national origin is prohibited by Federal laws. In November 1962, Executive Order 11063 banned discrimination in all federally assisted housing.
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Future Costs of Homeownership

The downpayment, if any, and closing costs are costs you will have when your loan is made. But they are only the initial costs. You must also be able to pay the future costs from your income.
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The Agreement to Purchase the Home

When you have decided to buy, the builder or seller will usually require a cash deposit (earnest money) as evidence that you really intend to go through with the deal. Make sure that when you make a deposit, you get a signed agreement from the seller to refund your deposit if you are unable to obtain VA financing, or if the builder and/or seller fails to go through with his or her part of the agreement.
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Closing the Loan

After the house is ready and the financing has been arranged, the lender will set a date for "settlement" or "closing." Settlement day is the day when the property officially becomes yours. You will also remember it as the "papersigning day." It generally occurs 30 days or more after the contract has been signed.
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Before and After Moving Day

Soon after final settlement you will move into your new home. Before you move in, you should check the house carefully to be sure that it is in good condition, and that the builder or seller has completed everything called for in the contract.
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