VA Loan / Veteran Mortgage News
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APRIL 2004
State of the Art VA Mortgage Lending
VALoans.com is one of a select group of lenders with VA Automatic Status, from the Department of
Veterans Affairs. VA Automatic status is a privilege, granted at the discretion of the VA, for
companies with the most qualified, experienced underwriters who have consistently performed
exceptionally under stringent quality control reviews. With our Automatic Status, we offer VA
mortgage banking services, for veterans and active duty military personnel nationwide. It also
means they we can close mortgage loans in our own name as mortgage bankers. We manage loan
processing, documentation, underwriting, appraisals and funding activities in-house allowing
for faster, easier mortgage transactions, saving customers weeks of time in getting their loan.
Get the Most for Your Money
Negotiating a great deal when buying a home can make an important purchase even more satisfying.
Here are some guidelines to consider when you're shopping for a house:
- Find out why the home is for sale. You're more likely to negotiate an outstanding deal with a seller who is highly motivated.
Look for someone who needs to move quickly, perhaps due to a job transfer. Avoid sellers who have no particular deadline or reason for selling - they may just be testing the market, and will sell only if they receive a high price.
- Focus on homes that are most likely to go up in value in the future. Houses in a preferred school district and in neighborhoods where the homes are well kept are good candidates.
- A house that needs a little maintenance typically will sell at a lower price, compared to a home in perfect condition. But have a professional home inspection done to insure there are no major problems you can't see.
If a house just needs a fresh coat of paint and landscaping, you can increase its value rapidly by doing that work.
- Watch out for houses with defects you can't cure. A home that's right by a noisy freeway will never be highly sought-after.
You also don't want to buy the most expensive house on a street, since other homes nearby will look like bargains by comparison.
- Patience can help when you're buying a home. You'll need to spend time looking at houses to find out what current prices are.
Make sure to learn the actual sale prices of recent transactions. You'll then know what a fair price is now - and will be in a better position to negotiate a good bargain.
Don't worry if you don't wind up purchasing the first house you make an offer on. Realize that you're gaining knowledge of the market that will help you find the right house at an attractive price.
- Know when to stop bargaining. Many buyers assume that a seller is negotiating only with them. But even after you've made an offer, the seller still can accept someone else's.
You have a solid deal only once you've signed a purchase contract with the seller. So you may want to end the negotiations quickly, if you've found a house you like and have reached an agreement that's satisfactory.
- Make sure your home loan suits your needs. Numerous mortgage programs are available now to help buyers in different situations. We'll discuss your goals with you, and show you how various home loans can help you reach them.
We'll then pre-approve you for a mortgage, so sellers will be aware you can purchase their house. Letting sellers know you have financing already arranged means they'll consider your offer as seriously as they would a cash buyer's!
A Nation of Homeowners
Buying a home used to be a lot harder than it is today. Families would save for years to have
enough money for a down payment and closing costs. Yet in recent years lenders have found ways to
make it easier on buyers. No wonder homeownership is at an all-time high in America now!
Down payment requirements have been lowered, and closing costs now often are financed
as part of the mortgage. The out-of-pocket cash needed to make a purchase today has been
drastically reduced. You'll start enjoying the outstanding advantages of being a homeowner
soon after moving in. Most importantly, you'll have a stable place where your family can be
secure and thrive.
You'll also enjoy tax benefits every year. Property taxes and mortgage interest
payments both are tax-deductible for most owners. Additionally, your home's value will increase
over time. Average American house prices have more than doubled over the last 16 years. Yet homeowners
with fixed-rate mortgages see their monthly payments staying the same. As their incomes
rise with time, the portion of their budget going to pay for housing actually becomes smaller.
On the other hand, renters usually pay their landlords more each year. And they don't gain anything
from the rising value of the properties they live in. Homeowners also can refinance their mortgage
and lower those payments if rates fall. Or you can obtain cash for any need by borrowing against
your home equity in the future.
Buying a house is one of the biggest steps most of us will ever make. It can be a stressful time,
and you'll benefit from having an experienced professional working hard on your behalf. Make sure to
contact us if you're thinking about buying soon. We'll help you find a mortgage that will put you
into a home you'll enjoy for years.
Healthy Market Helps Buyers
Low mortgage rates continued to help home buyers as the weather turned warmer this year. Rates have remained near 50-year lows for months, in order to boost economic growth.
Yet economists say it's simply a matter of time before rates begin rising. America's need to keep rates artificially low will vanish once more new jobs are being formed. And as hiring increases, the Federal Reserve will boost rates to keep our economy from overheating.
Other factors also could cause rates to rise. Worldwide demand for raw materials, such as oil and steel, are causing those goods to go up in price.
Higher costs eventually will push up retail prices. Interest rates then will rise to decrease demand, and keep prices from skyrocketing.
Homes Keep Increasing in Value
A recent government report reveals that average house prices nationally went up almost eight percent last year. Home values rose at an annual rate of almost 15 percent during the fourth quarter of 2003.
In each of the past four years average real estate prices have gone up more than 7.5 percent annually. A house costing $150,000 at the end of 1998 typically would be worth more than $212,000 today.
You can see on the map here how prices advanced throughout the country during 2003. Some economists expect home prices to go up another 5.5 percent this year.
Higher prices mean homeowners will have bigger profits when they're ready to sell. Owning a home is more than shelter and security - it's also a storehouse of value for your family's future.
Easy to Buy
Fortunately, today it's easier than ever to make this important purchase. On-time payment of rent and utilities can help first-time buyers establish a good credit history.
More than half of all first-time buyers now put less than five percent down when purchasing, says the National Association of Realtors (NAR). Just two percent of those buyers have down payments greater than 20 percent of the property's value, NAR adds.
Contact us now to find out how today's home loans can let you make a purchase soon. We'll also pre-approve you for a mortgage, so that you'll know how much you can afford to spend on your house.
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