The unfortunate fact is that not everyone is eligible for VA streamlined mortgage refinance. If, however, you prove to qualify then you stand to enjoy various advantages.
5 Benefits of Getting VA Streamlined Mortgage Refinance
VA streamlined mortgage refinancing is different from other types of loans because of the unique benefits it offers, some of which are listed below.
No Appraisal Requirements
Property assessment has always been part and parcel of the loan application process but VA streamlined mortgage refinancing is a definite exception. As long as you prove to meet the requirements for the loan, an appraisal of your property is no longer necessary. Automated valuation or a drive-by assessment would more than do.
No Credit Check
VA doesn’t care about your current credit rating. This may be bad news for those who have worked hard to maintain a stellar credit score but it’s sure to be good news for those with poor credit scores.
The absence of a credit check, however, doesn’t mean you don’t have to meet any other credit-related requirements. To become eligible for VA streamlined refinancing, you need to have an existing loan than you’re currently paying for.
If you don’t have a loan then what you need is financing and not refinancing. Secondly, you must prove that you’ve been able to pay on time for the last twelve months or at the very least, you haven’t submitted your payment later than 30 days following your supposed deadline more than once.
No Income Documentation Requirement
VA doesn’t care about where you’re getting your income from either. Unlike with other creditors, you won’t need to email or fax proof of your income. It doesn’t matter if you’re receiving cash income. It doesn’t matter if you’re self-employed. It doesn’t matter if you’re completely reliant on the financial support provided by your loved ones.
No Job Verification
In connection to that, one thing you shouldn’t have to prove is the existence of your job. In fact, there’s no need to lie. If you’re currently unemployed then so be it. The VA won’t care. They use a filtering process for loan applicants different from other creditors.
No Immediate Payment Required
Depending on your financial situation, current circumstances, and eligibility, the VA might be generous enough to give you up to a 2-month grace period before you’re required to make your first monthly payment for your loan. This might not seem much at first glance, but just imagine how much easier budgeting can be if you won’t have to worry about settling your monthly dues for two months!
Get Refunds
This is not, however, applicable for any situation. In particular, the VA may be able to refund your money if you have an existing escrow account.
Easy Loan Closing Process
You won’t have to worry about closing costs and delays when it comes to VA streamlined refinancing. Firstly, you can leave it to your future mortgage provider – the VA in other words – to take over the closing process. Secondly, if there are any closing fees you have to pay, the VA shall take care of that and they’ll simply add the total to your refinance loan balance. You won’t have to pay for them immediately either; they’ll be part of your monthly payment instead.
One thing you should be aware of, however, is that VA streamlined mortgage refinance does not offer cash out options. If you want that, you’re better off with a VA cash-out refinance loan!
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Monday, February 27, 2012
Sunday, February 26, 2012
Texas Mortgage Refinance Loan
Here are five simple and easy steps to help you acquire the best Texas mortgage refinance loan for your needs.
Step 1 Determine how long you’ll hold on to the mortgaged property.
The length of your stay will have a substantial impact on your future financial situation. It will help you determine the best rates and terms for your Texas mortgage refinance loan. It will allow you to determine, for instance, if you’ll have adequate cash to settle the final balloon payment for your loan.
Step 2 Shop and compare.
One huge mistake made by many first-time borrowers is forgetting to consult their first creditor for mortgage refinance rates. It is, after all, possible that you’re acquiring your second mortgage from the same lender. He could give you lower rates than usual. Your first mortgage might simply have been a consequence of bad timing; inflation, bad market trends, and other economic crises might have been why your creditor have charged you with a high interest rate.
Of course, if your first lender hasn’t anything good to offer then that’s the time you should approach other mortgage providers.
Step 3 Work on pre-qualification.
Be aware that becoming pre-qualified is different from becoming pre-approved. Pre-qualification simply means ensuring that you meet every possible requirement of your future mortgage provider.
Start by determining the ideal type for your second mortgage. What kind of mortgage this time around would best match your financial situation? Would you do better with a fixed interest rate or do you prefer an ARM?
Consider your employment history. While creditors certainly don’t require you to have a Best Employee of the Year award, it would help if you can show to them that you’ve been with your current employer for at least two years. It proves income stability and which to them guarantees consistent and on-time payment. As for those who are self-employed, creditors would also prefer if you’ve at least 25% ownership of the business.
Naturally, your credit score will always be a part of the pre-qualification process. This is true for almost all kinds of mortgages with the exception of VA loans and subprime mortgages. FICO scores range from 400 and 900. Anything bellow 600 makes you a poor credit risk and therefore unqualified for the best mortgage refinance rates. Do what you can to improve your credit rating.
Improve your monthly budget. Although you won’t have any chances to show your budget plan, assessing and adjusting your finances will make you more confident when negotiating with a mortgage provider. You can give them all the assurance they need about meeting their monthly payments.
Step 4 Close your old loan.
It’s time to settle your existing financial obligations in order to make way for your new and vastly improved Texas mortgage refinance loan. Cooperating with your previous and future lender will expedite the process so make sure you’ve got all your documents ready.
The closing process always starts with data collection. For one, your future mortgage provider will check your credit rating and evaluate the property to be mortgaged. If a drive-by assessment or automated valuation cannot be performed, a professional may be called in to make an accurate appraisal of the property. Make sure your property’s ready for this to get the best market value!
Step 5 Apply.
Re-read the loan terms and conditions. Be sure you understand the fine print before signing on the dotted line!
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Step 1 Determine how long you’ll hold on to the mortgaged property.
The length of your stay will have a substantial impact on your future financial situation. It will help you determine the best rates and terms for your Texas mortgage refinance loan. It will allow you to determine, for instance, if you’ll have adequate cash to settle the final balloon payment for your loan.
Step 2 Shop and compare.
One huge mistake made by many first-time borrowers is forgetting to consult their first creditor for mortgage refinance rates. It is, after all, possible that you’re acquiring your second mortgage from the same lender. He could give you lower rates than usual. Your first mortgage might simply have been a consequence of bad timing; inflation, bad market trends, and other economic crises might have been why your creditor have charged you with a high interest rate.
Of course, if your first lender hasn’t anything good to offer then that’s the time you should approach other mortgage providers.
Step 3 Work on pre-qualification.
Be aware that becoming pre-qualified is different from becoming pre-approved. Pre-qualification simply means ensuring that you meet every possible requirement of your future mortgage provider.
Start by determining the ideal type for your second mortgage. What kind of mortgage this time around would best match your financial situation? Would you do better with a fixed interest rate or do you prefer an ARM?
Consider your employment history. While creditors certainly don’t require you to have a Best Employee of the Year award, it would help if you can show to them that you’ve been with your current employer for at least two years. It proves income stability and which to them guarantees consistent and on-time payment. As for those who are self-employed, creditors would also prefer if you’ve at least 25% ownership of the business.
Naturally, your credit score will always be a part of the pre-qualification process. This is true for almost all kinds of mortgages with the exception of VA loans and subprime mortgages. FICO scores range from 400 and 900. Anything bellow 600 makes you a poor credit risk and therefore unqualified for the best mortgage refinance rates. Do what you can to improve your credit rating.
Improve your monthly budget. Although you won’t have any chances to show your budget plan, assessing and adjusting your finances will make you more confident when negotiating with a mortgage provider. You can give them all the assurance they need about meeting their monthly payments.
Step 4 Close your old loan.
It’s time to settle your existing financial obligations in order to make way for your new and vastly improved Texas mortgage refinance loan. Cooperating with your previous and future lender will expedite the process so make sure you’ve got all your documents ready.
The closing process always starts with data collection. For one, your future mortgage provider will check your credit rating and evaluate the property to be mortgaged. If a drive-by assessment or automated valuation cannot be performed, a professional may be called in to make an accurate appraisal of the property. Make sure your property’s ready for this to get the best market value!
Step 5 Apply.
Re-read the loan terms and conditions. Be sure you understand the fine print before signing on the dotted line!
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