Category Archives: VA loans

5 THINGS HOMEBUYERS SHOULD AVOID DOING ONCE THEY HAVE BEEN PREAPPROVED FOR A MORTGAGE

The worst is over! You have chosen a lender and real estate agent, you have found the home of your dreams, and your team has negotiated the best deal available for you. As a homebuyer, all you have to do now is sit and wait for your loan to close, right?

Wrong.

Getting a home loan is an interactive process. To help avoid any surprises while waiting for final approval, clients should consider the following do’s and don’ts.

Bart Swan and his team recommend that you keep your loan process on track by remembering the following:

• Do keep the process moving by responding to your loan officers’ requests.
• Do make decisions as soon as is reasonably possible.
• Do convey questions or concerns you have as they develop.
• Do continue to make all of your rent or mortgage payments on time.
• Do stay current on all other existing accounts.
• Do continue to work your normal work schedule with no unplanned time off.
• Do continue to use your credit as normal.

After you have been preapproved for your mortgage, refrain from falling into some of these common pitfalls, which can tie up your loan process, or worse, reverse the process entirely:

1. Don’t make any major purchases (car, jewelry, furniture, appliances, etc.).
2. Don’t apply for any new credit (even if it says you are preapproved).
3. Don’t pay off charges or collections (unless directed by your loan officer).
4. Don’t make any changes to your credit profile.
5. Don’t make unusual deposits into your bank accounts or move money around.

Follow these simple rules and you will help to make your loan closing as smooth and hassle-free as possible. Call me today for any questions you may have about your upcoming purchase.

Advertisements

Read below for reduced VA Funding Fee!

VA loan in Niceville Florida

VA loans in Niceville Florida

Have you served our country by serving in the military, reserve, or National Guard?  If so, your benefits are about to get better, and I think that’s great!  The VA mortgage loan is a fantastic tool for financing a home.  In fact, if a home buyer doesn’t want to make a down payment, their options are limited to a Veterans Administration (VA) loan (if they’re eligible), a Rural Housing Loan (only available in some parts of the country), or some niche types of loans with limited availability in some localities.

While VA loans are excellent they aren’t free, and cost a little more if you’re using it for a subsequent home purchase.  In fact, if you close on a subsequent VA mortgage this month, your VA Funding Fee will be 3.3% of the loan amount if you don’t make a down payment!  Fear not, it gets better!!

If you close your VA loan on the 1st of October 2011 (or more realistically the 3rd since the 1st is a Saturday) or after, your Funding Fee will reduce from 3.3% to 2.8%!  That’s a savings of .5% of the loan amount, ($1,250 on a $250,000 purchase!!).  If, after reading this, you decide to delay your closing a couple of days to save .5%, I’d be happy to let you take me to lunch!  🙂

Here is an abbreviated table for the VA Funding Fee:

VA Guaranteed Loans – Loan Fee Structure

loans closed on or after October 1, 2011

(abbreviated table)

First Time Use
Down Payment:  Less than 5%  Between 5% and 10%  At least 10%

1.40%

0.75%

0.50%

Second and Subsequent Use
Down Payment:   Less than 5%  Between 5% and 10%  At least 10%

2.80%

0.75%

0.50%

To see the full table, and the release from the Veterans Administration, click here.

For the past 6 years over 60% of my customers have used VA loans. Consider me your VA lending expert!

How can I help you or your friends?