Home Loans California & Arizona

How to Get the Best va Mortgage Loan

November 14th, 2012 8:34 AM by Nathan Rufty

When making a decision there are many things that you can consider. First, is there a small rate cut that you can pay off fast. This is if you find a va mortgage loan company that is willing to waive routine refinance charges like application, legal fees and appraisals. These ordinarily can add up to between $1500 and $3000. You can exchange these for front costs if you are willing to get a higher rate than the prevailing rock bottom rates.

Secondly, if you have plans to stay in the home for like three to five more years, you may find it convenient to pay points and even closing costs in order to get the least available va mortgage loan rate. Thirdly, you can stall paying out more cash and still you will get a lower rate. This will be done by adding points & closing costs to your mortgage. This does not necessarily means that you will be taking in more debt.

Considering a situation where you had the current va mortgage loan for not less than three years, you will have reduced the balance by a lot more than few thousand dollars. This means you can tack the closing costs into the loan but still get a smaller va mortgage loan than the original loan. Moreover, it will all be in a much lower monthly payment and lower rate.

Issues considered by va mortgage loan

  • Estimate of home value
  • Property type
  • Current interest rates, monthly repayment and mortgage balance
  • Loan period
  • Occupational status
  • Credit score
  • Type of rate you opt for whether fixed rate of adjustable rate
  • Additional cash amount you want to borrow
  • Existence of any other mortgage

There are other documents that will also need verification prior to issues of va mortgage loan. These documents include:

  • Organization documents
  • Certificate of good standing – if needed
  • Copy of occupational license – if necessary
  • Purchase and sales contract – if needed
  • Previous payment history
  • Completed & signed va mortgage loan purchase application

Majority of how buyers prefer refinancing their mortgages as it offers the best rates. Refinance va mortgage loan rates are much lower and you can use it to prepay the mortgage without necessarily committing any extra funds. You can consider shopping for a good mortgage rate that is offered by refinance mortgage lenders. This will help you to switch to a home that has low monthly payment. However, continue making the payment you have been paying each month.

If you want to reduce the mortgage fast, you can consider using hybrid adjustable rate mortgage. The refinance mortgage lenders normally offer fixed terms at lower interest rates for 30 year fixed rate mortgage.

Consequently, you can ask help from your loan officer to help you outline the best repayment plan for the va mortgage loan. You therefore need to make sure that you have all that is necessary for you to not only get the loan that you need, but also to refinance or prepay the loan effectively without being boxed to a corner.
Posted in:General
Posted by Nathan Rufty on November 14th, 2012 8:34 AM

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