VA Loan / Veteran Mortgage News
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Military Hub is about building wealth and saving money. It's about helping you make the best military financial choices for your future.
SEPTEMBER 2007
We Still Have 100% VA Loan Financing with $0 Downpayment
by Bruce Reichstein, VA Automatic Underwriter, VALoans.com
It has always been interesting to us when a veteran homebuyer selects a different type of home loan when they are eligible for a VA home loan. In our July 2007 newsletter, we analyzed three different loan types and the key factor that allowed the VA loan to have the lowest payment was that both the conventional loan and FHA loan require monthly mortgage insurance. The VA loan does not. The veteran will also experience lower closing costs because the VA will not allow the Veteran to pay certain closing costs which must be paid by the seller.
Recently we have seen an influx of VA loans due to veterans not having access to sources of 100% Non-VA financing that has gone away from the mortgage arena. The mortgage meltdown or subprime debacle is a real threat to a new home buyer. We just want to convey a simple message that our company has been originating 100% - $0 down payment VA home loans for over 20 years and completely understand how the VA approval process works. We never got involved with sub-prime mortgages. VA loans can be difficicult, so you need to use a company who are experts at VA lending.
Please give us a call or
apply online.
Smaller Price Gains
Home prices have flattened over the last year in much of the U.S., although values still are up sharply for the past five years. A recent government report shows house prices rose 3.2 percent over the twelve months ending June 30.
However, looking at average prices can be misleading. First of all, real estate markets are local. The strength of an area's economy influences the movement of prices. A healthy economy means jobs are plentiful, and new residents are eager to move in and purchase homes.
No Two Alike
Each home purchase also is a unique event. A house's price is affected by its location, condition, and the number of competing properties nearby. Most owners buy to live in and enjoy their home for years. Purchasing for lifestyle reasons ultimately is more satisfying than trying to guess where prices are heading in the short term.
But investors who counted on unrealistic price increases are a big reason for weak home prices in some communities. When they discovered they couldn't "flip" their vacation home or condominium for a quick profit, some of these owners now are selling at a loss. Today's real estate market is soft, after several years of fast-paced sales. Yet economists note that homes will continue to be in demand, since our growing population is producing new households who need a place to live.
We can help when you're ready to make an important home buying decision. Rely on us to provide financing that suits your individual needs and fits your budget.
Secure Your Retirement
Owning real estate is financially rewarding for most Americans. Homes traditionally have increased in value a little faster than the inflation rate. Yet a house usually shouldn't be the only tool you use to plan a secure retirement. Placing some funds in liquid savings and long-term investments such as stocks is a better way to be ready for whatever the future brings.
To achieve that goal you may need to find ways to spend less in order to save more. Also don't spend more than you can afford on a home in the hope that its value will increase drastically.
Remember that expenses are attached to homeownership - and they tend to climb as you move up to better properties. Utilities, maintenance, furnishings, homeowners insurance, and property tax payments all are higher on more-expensive houses. Buying the right house for your needs doesn't mean simply purchasing the largest home you can afford. Having funds left over each month that you can use both to enjoy life and invest for the future gives you security which you can count on.
We'll make sure you understand how your home payments will fit into your budget both now and over time. Together we can review your home financing options so you'll make a smart choice for your future.
Obtain More Benefits
Often when someone wants to purchase or refinance a home they'll call up a lender and ask, "What are your rates?" Yet knowing where rates are doesn't accurately reflect your costs, or indicate the benefits you'll receive from working with someone.
Mortgage rates are set by global financial markets, not by individual lenders. Each day they change, so quotes you receive from companies at different times aren't necessarily comparable.
Additionally, many loan types are available. Matching mortgage features to your individual needs is crucial.
For that reason we'll ask you lots of questions before going over loan options. Knowing how long you plan to stay in a property and how your income and expenses will change during that time are important elements when choosing financing.
Save Money
Your lender also should be able to give you advice that can save you money and make your transaction easier. One way we do this is by going over your credit report with you before applying for a loan. At that time we can correct any wrong information in your credit history. We'll also make suggestions for how you can improve your credit score.
For instance, you can reduce your mortgage rate by making sure your credit cards aren't charged to their limits. Having several accounts which aren't maxed out is better than charging one card to its limit. Confer with us early in your home buying or refinancing process. We'll work with you to gain the funds you need on excellent terms. Also ask us for the names and phone numbers of recent clients of ours. You can find out from them how we worked together, and how their new loan is helping them achieve important goals.
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