VA loans are loans available to veterans and their families to help them purchase homes. They offer many benefits not found in conventional mortgage loans.
The major benefit is that they do not require mortgage insurance because the government backs them.
They also offer lower down payments, more favorable loan terms and typically lower interest rates.
The one thing that is similar to conventional loans is that the interest rates can also fluctuate from homebuyer to homebuyer.
Learn what makes the rates fluctuate and how your rate may be determined.
WHAT DETERMINES APPROVAL ON MORTGAGE LOANS?
When potential homebuyers attempt to buy a home, they visit a lender, tell them what home they wish to purchase and submit an application.
Based on the information on the application, the lender will approve or deny the loan.
Approval is generally contingent on the following factors. • Property type • Loan to value (amount of loan compared to value of home) • Credit scores
• Ability to repay loan
Although the same factors that determine eligibility for conventional loans also apply to VA loans, the requirements for VA loans are much more flexible and not as strict.
A veteran, whether active or retired, is typically going to pass the ability to pay requirement.
Because the VA loan is backed by the government, the approval rating is much better because the lender knows they will be repaid for the loan.
INTEREST RATES & WHY THEY MAY FLUCTUATE
The current market rates are what determine interest rates, for the most part. Interest rates on mortgage loans can fluctuate as the market fluctuates.
The next driving factor is the homebuyer’s credit scores. High credit scores are not as important with VA loans as they would be with conventional loans.
A veteran with poor credit is more likely to get a home mortgage than someone who is not a veteran. However, low scores can still affect the veteran’s interest rates.
Although VA loans do not require down payments, having a down payment can provide better rates.
To summarize, the following factors can affect interest rates:
• Amount of down payment • Credit scores • Income
• Current market rates
CAN A VA LOAN SPECIALIST HELP?
Before this question can be answered, it’s important to know exactly what a loan specialist is and what they can do for a veteran or any homebuyer for that matter.
A loan specialist is an individual who helps a consumer obtain a mortgage loan as quickly, economically and stress free as possible.
Because they’re familiar with the process and current interest rates, a loan specialist can be very helpful to the veteran looking for a mortgage loan.
They will be with the veteran throughout the entire process. They not only help the veteran choose a lender but will also help them find the lender offering the best interest rates and loan terms.
Additionally, a loan specialist doesn’t stop at just finding a good lender but will work with and help the veteran right through the closing.
They’re there to answer any questions so the veteran knows what they’re signing and knows they’re getting the best possible deal.
Mortgage Originator JimmyVercellino, specializing in VA loans, helps veterans use their VA loan benefit to their greatest advantage.
Be a proud homeowner today. For more details call 480-351-5904 or visit the site www.valoansforvets.com
VA Loans for Vets 7600 E. Doubletree Ranch Road #200 Scottsdale, AZ 85258 Phone: (480) 351-5904 Email: jimmyv@fcbmtg.com