It is important that you understand what a VA mortgage specialist does when you want to refinance a VA loan. There are many things that they do. They can work with you to make sure that you are getting the best deal possible. They will also work with you to get you the best terms on your loan. Here are some things about a VA mortgage specialist and how he or she can help you to refinance a VA loan.
Setting up escrow accounts for a VA loan is very common in VA lending. Escrow is the process of keeping an account of the money that is going to be used for homeowners insurance and property taxes. Escrow accounts are used to collect money on a monthly basis for things like property taxes and other monthly expenses that are due at certain times each year. By setting up escrow accounts, the lender that finances your mortgage can collect one-fifth of the amount due each year, and your monthly payment is then decreased by one-fifth.
Homeowners that need lower interest rates should consider working with a specialist. Veterans may qualify for much lower interest rates if they use a VA lender. The savings are not only for the lender, but also for the veteran. Many lenders will waive up to forty percent of the interest and give the veteran reduced payment amounts. This is a great way to save money for the veteran.
Before you start shopping for loans to buy a new home or refinance an existing home, you will need to know your credit score. Your credit score will determine the interest rate that you will qualify for. A good credit score will save you hundreds of dollars over the life of the loan. Working with a specialist can help you obtain a better interest rate than what you could get from a traditional lender. In addition, some lenders offer incentives to people with a good credit score.
If you decide to work with a VA mortgage specialist, the first thing you need to do is meet with the lender in the process of refinancing. Many lenders will not provide these services, so it is up to you to find the ones that do. During this meeting, your specialist will check your credit score and ask for specific details. It is important that you have all of this information ready, so you can accurately answer the questions that the representatives ask you.
Once your application is reviewed by the lenders, you will be able to choose from among the loans that are offered. Some of these loans include: FHA Guaranteed, VA Home Equity, 30 Year Fixed Rate, and New Home Buyer Mortgages. It is important that you understand exactly what each type of loan has to offer you before you sign anything or enter into any type of agreement. You can learn more about your options by registering for a free mortgage guidebook.
When you have chosen which type of new home loan you want, you will need to fill out the application. This includes a title and deed verification, payment agreements, and a final eligibility disclosure statement. Your application will also need to include a VA homelife mortgage inspection report. These reports are usually not required until the final approval stage, but it never hurts to double-check everything. Working with a VA specialist can help you avoid extra fees that can be incurred because of incomplete paperwork or a lack of understanding of the application process.
Your lender will send you a title and deed confirmation, and a final eligibility disclosure statement. The title and deed must match the property that is being mortgaged.. Your lender will give you an address to mail the forms to as well as an email address to use for all communication with the lender. It may also be a good idea to set up a toll free phone number to keep in touch with a VA mortgage specialist should you have any questions about your home loan.