Important Aspects Of Refinancing A Va Mortgage Loan
Unlike conventional home loans, the VA mortgage loans are available only to qualified veterans and members of US Armed Forces. As these home loans are guaranteed by the Veterans Affairs (VA), the veteran borrowers can purchase or refinance residential properties by availing a number of benefits. Along with paying lower interest rate, they can further obtain the mortgage loan without making any down payment and going through regular credit checks. However, each veteran borrower needs to obtain according to the VA guidelines. Also, he has to submit the documents to prove his eligibility. Therefore, each veteran borrower must understand the how to refinance a VA mortgage loan.
Procedure to Refinance Your Existing VA Mortgage Loan
Eligibility: When you decide to refinance a VA loan, it becomes essential to understand the eligibility criteria set by the Veterans Affairs. The lender will further require you to submit certain documentation to prove your eligibility. Normally, you have to submit your DD214 documents to prove your service and discharge from the US military services. You have to send the document to the VA Eligibility Center along with a VA Form 26-1880. After verifying the documentation and form submitted by you, the VA will decide if you are eligible for refinancing your existing VA loan. If you meet the eligibility criteria, the VA will issue you a Certificate of Eligibility.
Documentation: The lender will require you to submit certain documents in addition to the Certificate of Eligibility obtained from the VA. Normally, you have to submit documents to prove your assets, income and expenses. The lender may also ask you to show W-2s, pay stubs or tax returns according to the source of your income. At the same time, you also need to meet the requirements set by the loan program. For instance, the loan program requires veteran borrowers to have some disposable income after paying all expenses. So you may have to document certain expenses and bills to decide your disposable income. Some lenders even evaluate the creditworthiness of borrowers by analyzing their credit reports.
Property Appraisal: The lender will further appraise your residential property to decide its real value. The appraised value of the property will also be compared to the VA loan amount to ensure that the value is adequate to support the loan amount. Normally, the appraiser will decide the value of your property by comparing it with the prices of the similar homes sold in your area. However, the appraiser will make certain adjustments to decide the real value of your property.
VA Streamline Loan Approval: Based on the appraised value of the home and the documentation submitted by you, the lender will approve the home loan. Once the home loan is approved, you have to close your existing VA loan by contacting the current lender. Once the loan is closed, the company will submit you signed documents that you can use to refinance the existing VA loan.
You can always consider contacting several VA approved lenders to obtain the VA mortgage refinance at reduced interest rate. Also, you can negotiate with the lenders to refinance your VA mortgage loan by avoiding the regular credit checks and property appraisal.
Procedure to Refinance Your Existing VA Mortgage Loan
Eligibility: When you decide to refinance a VA loan, it becomes essential to understand the eligibility criteria set by the Veterans Affairs. The lender will further require you to submit certain documentation to prove your eligibility. Normally, you have to submit your DD214 documents to prove your service and discharge from the US military services. You have to send the document to the VA Eligibility Center along with a VA Form 26-1880. After verifying the documentation and form submitted by you, the VA will decide if you are eligible for refinancing your existing VA loan. If you meet the eligibility criteria, the VA will issue you a Certificate of Eligibility.
Documentation: The lender will require you to submit certain documents in addition to the Certificate of Eligibility obtained from the VA. Normally, you have to submit documents to prove your assets, income and expenses. The lender may also ask you to show W-2s, pay stubs or tax returns according to the source of your income. At the same time, you also need to meet the requirements set by the loan program. For instance, the loan program requires veteran borrowers to have some disposable income after paying all expenses. So you may have to document certain expenses and bills to decide your disposable income. Some lenders even evaluate the creditworthiness of borrowers by analyzing their credit reports.
Property Appraisal: The lender will further appraise your residential property to decide its real value. The appraised value of the property will also be compared to the VA loan amount to ensure that the value is adequate to support the loan amount. Normally, the appraiser will decide the value of your property by comparing it with the prices of the similar homes sold in your area. However, the appraiser will make certain adjustments to decide the real value of your property.
VA Streamline Loan Approval: Based on the appraised value of the home and the documentation submitted by you, the lender will approve the home loan. Once the home loan is approved, you have to close your existing VA loan by contacting the current lender. Once the loan is closed, the company will submit you signed documents that you can use to refinance the existing VA loan.
You can always consider contacting several VA approved lenders to obtain the VA mortgage refinance at reduced interest rate. Also, you can negotiate with the lenders to refinance your VA mortgage loan by avoiding the regular credit checks and property appraisal.
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