As the name suggest, VA refinancing is for veterans. By a veteran, we mean a person having a lot of experience in a particular activity. They usually constitute the retired professionals and labor and the armed personnel. So if you are a veteran who wants to save money and get better terms on your mortgage, VA Mortgage loan is made just for you.
VA loans offer a lot of advantages to the veterans. Firstly they offer them exposure to competitive financing which they cannot get from traditional mortgage loan. The VA loans are available with the traditional mortgage lenders like any other mortgage. The lenders are also enthusiastic about this scheme because it has the Federal Government backing. This puts the lender in the little or no risk zone.
If you want to apply for the VA loan, you need to qualify as a veteran. This is based on the Veterans Administration criteria for income and credit history. If the value of the applied mortgage is less than or equal to the appraised value of your home, you are exempted from making the down payment for the qualification procedure. The $36,000 payment which you would have done under the traditional mortgage loan is covered up by the Federal Government for the VA loan.
There are also many small benefits of acquiring a VA loan. One of them is that no penalty is imposed on the prepayment of the loans. Secondly, you are given the freedom to barter with your interest rates. Also you have a good chance of qualifying for a warranty on your new home. Also in case of any financial constraint, the VA can always help you avoid foreclosure. Thus it is a strong pillar of support by your side.
But looking for VA loans is not at all easy. Just like while purchasing gold, you go from shop to shop to get the cheapest and the best, in the same way, you need to do your homework properly to spot the best mortgage deals. Once you qualify for the loan, contacting the Veterans Administration to meet their specific requirements is a must. When shopping for different loans from different lenders, all aspects of the mortgage should be taken into account and not just the interest rates. Finding VA loans has become more convenient now-a-days because of the increasing use of internet by money lenders. Thus all the information is available to us on a click of the mouse. They can provide us with free estimates and are also able to answer our inquiries in a better and faster way. The paperwork associated with the various procedures of acquiring a VA loan is minimal. The funding fee and other costs associated with the loan can be easily rolled into the loan. Hence, as is required with any financial decision, you have to be sure of all the terms and conditions which have been imposed on you for borrowing the VA loan. Only then should you sign the dotted line.