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10 Biggest Benefits of a VA loan!

Published on November 11, 2017June 14, 2020 by estradadesireeLeave a comment

The VA loan: Better than FHA and conventional loans?

There is a “right program” for every mortgage borrower, but for many, the VA loan stands apart for its combination of low rates, aggressive underwriting, and secondary benefits.

Backed by the U.S. Department of Veterans Affairs, VA loans are designed to help active-duty military personnel, veterans and certain other groups become homeowners at an affordable cost.

The VA loan asks for no down payment, requires no mortgage insurance, allows flexible guidelines for qualification among its many other advantages.

Here’s an overview of the 10 biggest benefits of a VA home loan.

1. No down payment on a VA loan

Most home loan programs require you to make at least a small down payment to buy a home. The VA home loan is an exception.

Rather than paying 5, 10, 20 percent or more of the home’s purchase price upfront in cash, with a VA loan you can finance up to 100 percent of the purchase price. The VA loan is a true no-money-down opportunity.

2. No mortgage insurance for VA loans

Typically, lenders require you to pay for mortgage insurance if you make a down payment that’s less than 20 percent. This insurance, which is known as private mortgage insurance (PMI) for a conventional loan and a mortgage insurance premium (MIP) for an FHA loan, protects the lender in the event that you default on your loan.

VA loans require neither a down payment nor mortgage insurance. That makes this a VA-backed mortgage very affordable upfront and over time.

3. VA loans have a government guarantee

There’s a reason why the VA loan comes with such favorable terms. The federal government guarantees that a portion of the loan will be repaid to the lender even if you’re unable to make monthly payments for whatever reason.

This guarantee encourages and enables lenders to offer VA loans with exceptionally attractive terms to borrowers that want them.

4. Your ability to shop and compare VA loans

VA loans are neither originated nor funded by the VA. Furthermore, mortgage rates for VA loans aren’t set by the VA itself. Instead, VA loans are offered by U.S. banks, savings-and-loans institutions, credit unions and mortgage lenders — each of which sets its own VA loan rates and fees.

This means you can shop around and compare loan offers and still choose the VA loan that works best for your budget.

5. VA loans don’t allow a prepayment penalty

A VA loan won’t restrict your right to sell your home if you decide you no longer want to own it. There’s no prepayment penalty or early-exit fee no matter within what time frame you decide to sell your home.

Furthermore, there are no restrictions regarding a refinance of your VA loan.

You can refinance your existing VA loan into another VA loan via the agency’s Interest Rate Reduction Refinance Loan (IRRRL) program or switch into a non-VA loan at any time.

6. They come in many varieties

A VA loan can have a fixed rate or an adjustable rate. It can be used to buy a house, condo, new-built home, manufactured home, duplex or other types of properties.

Or, it can be used to refinance your existing mortgage, make repairs or improvements to your home, or make your home more energy efficient. The choices are yours. A VA-approved lender can help you decide.

7. It’s easier to qualify for VA loans

Like all mortgage types, VA loans require specific documentation, an acceptable credit history and sufficient income to make your monthly payments. But, as compared to other loan programs, VA loan guidelines tend to be more flexible. This is made possible because of the VA loan guaranty.

The Department of Veterans Affairs genuinely wants to make it easier for you to buy a home or refinance.

8. VA loan closing costs are lower

The VA limits the closing costs lenders can charge to VA loan applicants. This is another way that a VA loan can be more affordable than other types of loans. Money saved can be used for furniture, moving costs, home improvements or anything else.

9. The VA offers funding fee flexibility

VA loans require a “funding fee”, an upfront cost based on your loan amount, your type of eligible service, your down payment size plus other factors. Funding fees don’t need to be paid as cash, though. The VA allows it to be financed with the loan, so nothing is due at closing.

And, not all VA borrowers will pay it. VA funding fees are normally waived for veterans who receive VA disability compensation and for unmarried surviving spouses of veterans who died in service or as a result of a service-connected disability.

10. VA loans are assumable

Most VA loans are “assumable,” which means you can transfer your VA loan to a future home buyer if that person is also VA-eligible.

Assumable loans can be a huge benefit when you sell your home — especially in a rising mortgage rate environment. If your home loan has today’s low rate and market rates rise in the future, the assumption features of your VA become even more valuable.

HOW TO BUY A HOUSE: CLICK HERE | INTERESTED IN SELLING: CLICK HERE

For more help contact me.

All data is deemed reliable but is not guaranteed accurate by the RLS or Century 21. See Terms of Service for additional restrictions. © 2020. Century 21 Allstars. All material presented herein is intended for information purposes only. While, this information is believed to be correct, it is represented subject to errors, omissions, changes or withdrawal without notice. All property information, including, but not limited to square footage, room count, number of bedrooms and the school district in property listings are deemed reliable, but should be verified by your own attorney, architect or zoning expert. The number of bedrooms listed above is not a legal conclusion. Each person should consult with his/her own attorney, architect or zoning expert to make a determination as to the number of rooms in the unit that may be legally used as a bedroom. We are an equal housing opportunity provider. Consistent with applicable law, we do not discriminate on the basis of race, creed, color, national origin, sexual orientation, lawful source of income, military status, sex, gender identity, age, disability, familial status (having children under age 18), or religion. Equal Housing Opportunity.

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8 Home Improvements That Add Value

Published on September 29, 2016June 6, 2023 by estradadesireeLeave a comment

When you take on home improvement, whether you do it yourself or hire professionals, you’re taking on costs for projects that, if done right, will add to the value of your home. But keep in mind that the payback is rarely 100%, and you won’t get to enjoy the financial benefit of the work until you sell or refinance the house.

If you’re getting the house ready to sell, be sure the colors and materials you choose are on trend, aligned with the style of your home and consistent with neighborhood character.

1. GARAGE DOOR: A new garage door updates the look of the home and adds to curb appeal. Estimated average $4,000 to replace, the rate of return remains high at 93% of costs. If a replacement is a steep investment, a fresh coat of paint can feel like new.

2. KITCHEN REMODEL: Remodeling suggests replacing the cabinet and drawer fronts with Shaker-style panels and new hardware, getting new energy efficient appliances, replacing laminate countertops, getting a mid-priced sink and faucet, new floors and adding a fresh coat of paint. The average return of investment is 70%.

3. LANDSCAPE: Clean up your yard. Having trimmed trees and shrubs, a well-maintained lawn, and flowers or flowerbeds can help improve the value. Depending on the art size, a $6,000 investment on your landscaping and fence can expect a cost recovery of 83%.

4. BATHROOM: You don’t need to budget for a full remodel to refresh your bathroom. However, if your bathroom needs a full remodel, expect to spend around $35,000. Your cost recovery will be around 57%, which means you’ll get about $20,000 back when you sell your home.

5. PAINT: The quickest and easiest way to get some bang for your buck is to give any room in your home a paint refresh. Stick to light, neutral colors and don’t forget to add a new coat to the trim and the ceilings for an all over clean look. Theres 107% return of investment refreshing the interior and 55% for exterior paint.

6. FLOORS: Breathe new life into your existing hardwood floors by resurfacing them or installing new hardwoods in your home to see an average ROI around 70% to 80%. There’s no denying that beautiful floors make a great first impression, and with a variety of stain colors, your hardwood floors can be timeless or trendy.

7. ENTRY DOOR: If your home’s shabby, worn entry door is a visual downer, pencil in a new steel entry door at the top of your remodeling list. Not only will a new entry door freshen up your home’s facade, but you’ll recoup a sizable 65% of your investment if you then sell your house.

8. SOLAR: According to the National Renewable Energy Laboratory, every dollar that a solar panel saves you on your electrical bills increases the value of your home by $20. This amounted to an average increase to the home’s selling price of $20,000 in California.

Contact me for assistance with the sale of your home or a thorough consultation to prepare your home. I can also connect you with a lender that can assist with a home equity loan.

BUYING | SELLING | CONTACT ME

10 Most Common Home Buyer Questions

Published on April 22, 2016June 6, 2023 by estradadesiree3 Comments

Knowing the answers to the 10 most common home buying questions can alleviate some of the stress that comes with buying real estate.

1) What’s the first step of the home buying process?

Answer: The Mortgage Pre-Approval.

Unless you are paying cash for a house, you will need to get a mortgage. In order to know how much home you can afford, you will need to get pre-approved for a loan. This is the first-step in the home buying process.

2) How Long Does it Take To Buy a Home?

Answer: It depends. Typically 30 days after your offer is accepted

The timeline for finding a house varies greatly from person to person. The qualification can be a longer process if you need to build credit, file your taxes a certain way, or save a little longer. Once you begin house hunting, that can be as quickly as seeing homes one day to waiting for months until a home within your criteria hits the market. After an offer is accepted by the seller, the loan typically requires 30 days for approval. The entire home buying process can take as little as 60 days.

3) What Does A REALTOR® Do?

Answer: Almost everything.

A REALTOR® is your most valuable asset when buying a home. They will walk you through every part of the home buying process. They will educate and inform you of all your options. They will represent you throughout the transaction and beyond.

There is a difference between a REALTOR® and a real estate agent; many people do not know this. A REALTOR® is regulated by the National Association of REALTORS® and subscribes to a strict Code of Ethics. A real estate agent does not. It is recommended that you work with a licensed REALTOR® to avoid potential problems.

4) How Much Do I Have To Pay a REALTOR® as a Homebuyer?

Answer: Nothing

In most cases, you do not have to pay your REALTOR® anything to help you purchase a home. The sellers pays their REALTOR® a fee, and then that listing agent pays the buyers agent for bringing the buyer and facilitating the transaction.

5) What’s Your Best Advice for First-Time Homebuyers?

Answer: Trust the Professionals.

Beware of advice from people who do not work in the industry. Real estate is a popular topic and almost everyone feels like they have some great insight to offer. In reality, the people who know best are the people that work in the business. Good REALTORS® have sold hundreds (maybe thousands) of properties. We know what to expect and what to look out for. Friends and relatives have only bought and sold a few homes, if any at all. Buying and selling a couple of homes does not make someone a well-rounded source of information. I’ve seen too many first-time buyers become persuaded by well-meaning friends and family, only to be disappointed later. Be confident in your decisions and trust the professionals.

6) What Kind of Credit Score Do I Need to Buy a Home?

Answer: 620+

A 620 credit score, or higher, is recommended. As you are probably aware, a higher credit score offers better lending terms. This is an ever evolving topic, however, as loan requirements are constantly changing. There are some lenders who will approve buyers with a 580 score, sometimes even lower. Your loan officer will be the best source to give you a current answer for today’s lending requirements.

7) Are There Special Home Buying Programs That I Should Know About?

Answer: Yes

There are some great home buying programs to research. The main ones would be VA loans, USDA loans, and FHA loans. Knowing the difference between these loan types is very important. Speak to a trusted lender to review your options.

8) How Much Money Do I Need for a Downpayment?

Answer: It depends on your loan type. Usually 3% to 5% down.

The most common answer is 3% to 5% of the purchase price. FHA loans just dropped their requirement from 3.5% to 3.0%. There are also some conventional loans that only require 3% down. Veterans are usually eligible for a VA loan, which requires no money down. Properties in rural areas are usually eligible for a USDA loan, which also requires no money down.

9) What Other Fees Are There, Besides the Downpayment?

Answer: Mainly loan origination and closing costs.

The downpayment is usually the largest cost associated with buying a house. Lending fees are the second largest costs to homebuyers. Most lenders will charge between 2% to 4% of the loan amount for loan origination fees, depending on the loan type. Conventional loans usually have lower loan origination fees, but require more money down. Your loan officer will be able to help you determine how much you can expect to pay towards loan origination and closing costs.

10) When do I get the keys?

Answer: At Closing

Under normal circumstances, you will get the keys at the closing. A closing typically takes about an hour. In some cases, the lender will need time to fund the loan and you will need to pick up the keys after the loan has been funded. If you have a Friday evening closing and the loan cannot fund until Monday, you may not get the keys until Monday. Make sure to coordinate your closing to get the keys on the same day, if that is what you need.