A Texas license holder is assisting a veteran buyer. Before the VA loan can be processed, the lender requires a document from the Department of Veterans Affairs confirming the veteran's eligibility and remaining entitlement. What is this document called?
Correct Answer
D) Certificate of Eligibility (COE)
The Certificate of Eligibility (COE) is the official VA document that verifies a veteran's military service and remaining loan entitlement. Lenders use it to confirm the veteran qualifies for a VA-guaranteed loan.
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A VA loan is a mortgage guaranteed by the Department of Veterans Affairs available to eligible veterans, active-duty service members, and surviving spouses. It offers no down payment and no private mortgage insurance requirements.
An adjustable-rate mortgage (ARM) has an interest rate that changes periodically based on market conditions, typically after an initial fixed-rate period. The rate adjustment is tied to a financial index plus a margin.
Closing costs are the fees and expenses paid by the buyer and seller at the closing of a real estate transaction, beyond the purchase price. They typically range from 2-5% of the purchase price.
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