If your seeking a the VA mortgage in today’s economic climate I have learned  one thing for certain.  Expect the unexpected, always be prepared, and get ready to work overtime.  That’s our credo.   And frankly speaking… if you hear anyone tell you they never experienced any last minute surprises, you can rest assured they aren’t closing any loans.

In this transaction, here are just a few of the obstacles we had to deal with:

• The 3^rd largest Government lender in the country collapsed just before funding.
• Our client was recovering from bankruptcy
• We had credit issues that needed to be repaired BEFORE closing
• Our 2^nd and “back-up” lender turned down the loan AFTER our client was completely packed up and prepared to move.
• And, we had to drive over 800 miles to bring this story to you…

Best of all our client moved into a new home inside a gated community, has a 5.5% fixed rate loan, and to quote him directly, “feels truly blessed.”

My personal thanks to Sam for giving us the chance to fund his VA Mortgage Loan…

What you need to understand from this story -

A bankruptcy does not mean you won’t qualify for VA Financing.  It simply means you may need to do a little credit repair before you buy.  In this example that is exactly what we did.  In most cases you will need a 620 (or better) credit score to qualify.

Don’t wait around to get the ball rolling.

Sky Blue Credit Repair: Our Top Choice among Credit Repair Companies

Sky Blue Credit Repair has our vote for the best credit repair program available. It is our opinion that they have taken the business to a whole new level. This is far more than just a dispute factory. Sky Blue focuses on making sure you are left with truly usable credit – credit that meets prospective lender guidelines so you can really benefit in a tangible way.

We especially appreciate the Sky Blue Credit Repair focus on personalized customer service. The one-on-one attention is part of a comprehensive approach that makes them so attractive. They include unlimited credit bureau disputes, debt validations, credit score consultation, guidance with building new credit, and even assist with rehabilitation of student loans if needed.

We also really like the fact that Sky Blue Credit Repair only charges a single low monthly fee without requiring any upgrades. One price covers everything needed to clean up and restore your credit. They also offer a great 50% discount for spouses if you sign up together.

Sky Blue Highlights:

• Credit repair services offered since 1989
• A focus on the highest ethical standards
• One-on-one customer service
• A unique approach designed to build truly usable credit
• $49 setup fee followed by $49 per month – half price for spouse
• All inclusive – No confusing program options or costly upgrades needed

Check them out at Sky Blue Credit Repair. We think you will be impressed too!

Take the next step and share this story with your fellow Veteran friends.

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Here are the highlights:

• We take a first time home buyer and from square one… get him into a brand new 3000 sq. ft. home in 60 days.
• We took care of ALL the details from start to finish
• We never saw our borrower until AFTER he moved into the home.. this proves you can apply for a mortgage without ever actually setting foot into a lenders office for a face to face meeting.
• He applied for 100% financing but ALSO received $416.00 dollars cash back at closing. Click here to view the actual closing document That’s right, the behind the scenes numbers.
• He will receive his $8000 dollar tax break.
• The new home has a room “just for mom.”
• Extra special thanks to Westside High School Marching Band.

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Part 1
Part 2

On today’s show we talk Short Sales and Loan Modifications…. Here’s what’s in store for you.

• We dig deeper behind the myths and controversy surrounding Short Sales
• Take a closer look at why 85% of most Realtors don’t have a clue how to do them properly.
• Discover the best ways to find a true short sale professional.
• Examine the alternatives to a short sale
• How to do a loan modification

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This sounds like a chicken or egg question but should you get a loan officer or a real estate agent first?  Let’s break it down to help you decide:

Realtor first! Believe it or not, real estate agents would want you to start with them.  A realtor would help you get to the right track and would want to influence you when it comes to choosing affiliates or other team players that involved in the house-buying process.  By saying team players, that includes loan officers.  This typically happens when the realtor finds out that you don’t have a lender yet.

Loan officer first! Get a loan officer first if you haven’t been preapproved for a VA loan.  Why?  Well, for one, it’s better to know your budget first before you go shopping.  Don’t fret if your loan officer asks if you already have a realtor.  Having a realtor before your VA loan application process begins is not a requirement.  The loan officer asks you this question to help you.  If the loan officer finds out that you don’t have a realtor yet, he’ll most likely give you a list of realtors he has done business with and even provide you a qualification letter that you can show to the realtors.

So what is the best thing to do?  To be honest, it doesn’t matter because the two will lead you to the other anyway.  Some people might disagree.  But the point is, you’ll end up finding a lender and a realtor since at the end of the day, you will need them both.  What is important is that you understand that aside from these two, there are other people involved in this process.  Here’s a quick list of other team players according to David Reed, a veteran of the mortgage industry:

• Loan Processor – The one who verifies, compiles, and reviews your loan application.  The loan processor also calls the credit bureau and employer to verify your information.
• Appraiser – The person who estimates the worth or value of a property and creates the document called Notice of Value.
• Inspector – The expert who performs structural and pest inspections – plumbing, electrical work, roof, structural stability, etc.
• Insurance Agent – The person who is authorized to sell and transact insurance.
• Title Agent – The guy who makes sure that it’s you and only you can claim property to the home you are buying.
• Attorney – Not all states require that you have an attorney when purchasing a home but some do!
• Surveyor – The surveyor measures the house’s dimensions – including permanent structures, boundary lines and easements.
• Underwriter – This team player analyzes the risks involved in your VA loan application and then establishes terms and conditions depending on the risks.
• Escrow Agent or Closer – The closer makes sure that all your papers are signed and the sale took place.
• Funder – The guy who generate wires for loans to fund.

But the most important person in this process is YOU!  Never let any members of the team push you around into deciding into something that you do not want or understand.

Related posts:

1. Good Faith Estimate 101 for Veterans
2. Rate Shopping For A VA Loan? Read This First!
3. 10 Things You Must Do After Buying a New Home
4. How to time your VA loan financing.
5. The VA Loan Process

One of the most important things that every veteran should know is how to evaluate a Good Faith Estimate or GFE.  A good faith estimate is not just a verbal quote of how much you are going to pay but it is actually a document required by the Real Estate Settlement Procedures Act (RESPA).

If you are applying for a loan, the lender or broker should provide you a written estimate within 72 hours after applying for a VA loan.

Don’t get confused if you get multiple GFEs showing different bottom line totals. In most cases, you will receive a preliminary GFE and later, a “Final” GFE after the lender as approved the loan.

Be aware that every bank or mortgage broker will estimate costs differently but it is critical you understand what fees are stated, and whether you are being charged correctly.

Also, remember that a GFE is just an estimate – this is your loan officer’s best guess on how much it’s going to cost you to close your loan.

To make things easier, let’s breakdown the GFE into two categories: lender or broker-associated costs and other costs.

Lender or Broker-Associated Costs – The costs under this category should be more or less accurate. This is basically how much the lender or broker asks you to pay to process your VA loan application. These costs should include but are not limited to: loan origination fees, loan discounts, appraisal fees, credit reports, lender inspection fees, any tax-related service fees, processing fees, underwriting fees, and wire transfer fees.  See VA allowable charges for a complete listing of acceptable loan fees.

Other costs – Aside from the lender and mortgage broker, there are also other entities involved in your VA loan application procedure. These bodies require a certain amount to be paid in order to complete your application.  Some examples of these costs are insurance premiums, VA Funding Fee, title charges, escrow fees, transfer charges, and any additional settlement charges.

How exactly do you make use of this information?

We recommend you focus your efforts on interest rate AND lender charges because these are the only variables the bank actually controls.  All other charges such as taxes, home owners insurance, settlement fees, and escrows will vary dramatically depending on the institution that prepares the GFE.

In some cases, your bank or VA mortgage broker won’t even take the time to quote these third party fees.   So, if you get a GFE with very low costs take a second look at what’s actually being charged.  You may be surprised to learn your VA lender has omitted 50% of the required information.

Surprisingly, the highest costing GFE can often be the best deal! If your VA lender did a great job, your GFE should be complete.  But be aware, this may also translate to a higher bottom line when you compare to other “incomplete GFE’s.   A completed GFE will include: all escrows, taxes, home owners insurance.  This is also a good indicator that your working with a VA lender that has your best interest at hand and does quality work.  Don’t deal with VA lenders that can’t provide accurate documents.  That’s the best advice I can give.

In addition to your GFE, and before you make your final decision, ask your VA lender for a performance guarantee and make sure they put it in writing. What is a performance guarantee you ask?  This is a document that your VA lender provides guaranteeing your costs on the loan.  It will also guarantee your interest rate should you choose to lock the VA loan.

By obtaining a “completed” GFE and performance guarantee you can rest assured your homework is done and your ready to select a VA lender.

Related posts:

1. VA Loan Closing Costs 101
2. How To Find The Right VA Lender
3. Rate Shopping For A VA Loan? Read This First!
4. Characteristics Of Predatory Lenders
5. Loan Officer or Realtor: Who Do You Get First?

For guaranteed loans, the law requires the borrower to pay the VA Loan Funding Fee.  A veteran will be asked to pay this upfront during the final stage of the loan application process. Though VA home loans provide veterans a no-money-down benefit, a veteran is asked to pay the VA Funding Fee as a contribution toward the cost of this unique benefit. As a result, the VA Funding Fee reduces the cost to taxpayers.

For first time veteran borrowers, the fee is currently at 2.15% while second-time users who don’t want to make a down payment are asked to pay 3.3%. Why are second-timers asked to pay more? It’s pretty simple, these veterans have already taken advantage of the benefit in the past plus they have also had the time to save money to pay for a down payment.

Another important aspect of the VA Funding Fee that every veteran must know is that it can vary depending on the type of service rendered and whether the loan is a purchase, a streamline refinance or IRRL, or simply a cash-out transaction. The following charts show the details of the VA Funding Fee.

Cash-Out Refinancing Loans

* The higher subsequent use fee does not apply to these types of loans if the veteran’s only prior use of entitlement was for a manufactured home loan.

Although almost all veteran home buyers pay the VA Loan Funding Fee, there are some exceptions to this:

• Veterans with service-related disabilities who are receiving VA compensation
• Veterans with service-related disabilities who did not receive retirement pay but are entitled to receive compensation
• Surviving spouses of veterans who died while rendering service or from any service-related disabilities

Related posts:

1. VA Loan Closing Costs 101
2. Rate Shopping For A VA Loan? Read This First!
3. Benefits to Refinancing with a VA Streamline Refinance Loan
4. How To Find The Right VA Lender
5. VA Cash Out Refinance

A VA appraisal is a critical step in funding a VA loan.  Let’s examine the appraisal process and highlight the key points every veteran should understand.

Don’t try to order your own VA appraisal!

The VA lender is responsible for ordering the appraisal.  This process normally takes place just after the borrower has submitted their entire loan package.

The Department of Veteran’s Affairs will assign a VA loan appraiser. In order to prevent appraisal fraud, the homebuyer will not be able to choose which appraiser performs the work.

The approximate cost of a VA loan appraisal is around $400.00. This fee is state-regulated so it depends on the location of the home sale. The VA loan appraisal fee, in most cases, must be paid before the VA loan is closed.

When dealing with appraisals, the financing can be delayed if the property is not up to par.  VA appraisal guidelines can be found on the Veterans Affairs website.  These rules discuss the particular instances that could cause a home to appraise for less than the sale price.  In order for a VA loan to fund, The appraisal must meet or exceed the purchase price.

If your home does not appraise this could be why

• The home is not in livable condition
• The home is in poor condition-if there are repairs needed they must be completed before the VA loan is closed.
• There are safety issues with the home; lacking a home foundation, no railings on a stairway; etc.

After a VA loan appraisal is conducted you will receive a CRV (Certificate of Reasonable Value) which will be based on the VA loan appraiser’s estimate of the property’s value.

If your appraised value is low, take these actions.

• Negotiate the sale price of the house with the seller in order bring the price down to meet the VA loan appraisal amount.
• Make a down payment to cover the difference.  (I only recommend doing so if you have a home you can’t pass up.)
• Request a “Reconsideration of Value” if there were new comps and additional information that would raise the value of the home, which were not available at the time of the original VA loan appraisal.

Related posts:

1. How to time your VA loan financing.

You finally closed on your new home. Congratulations! The process of checking credit reports, getting a VA loan to finance your purchase, finding a realtor, looking for a house, and moving are over so whats next?

1. Update your address. Complete an official change of address form online or at a local post office to make sure that all your mails are routed to your new address. Don’t forget to call financial companies and your utilities providers for a change of address.
2. Transfer your utilities. You wouldn’t want to move in to a new home without electricity, gas, or water, right? If you’ve already started doing this, then good for you. And oh, don’t forget to call the telephone and cable company.
3. Invest in security. One of the important things that some people miss would be taking care of security. You don’t have to hire a security guard to do the job, all you gotta do is call a locksmith to change the locks since you wouldn’t know if someone else still has a key. Got extra dough? Get a security cam.
4. Meet your new neighbors. Don’t wait for your neighbors to come over and say hello. Go ahead and introduce yourselves. Your neighbors are the people who keep an eye at your new home when you’re away.
5. Don’t forget to pay your mortgage. I know it’s tempting to buy a new high definition TV or furniture for your new home. But, it’s wise to ease into your mortgage payment first before making any big purchases.
6. Familiarize yourself in the new area. Drive around and familiarize yourself in the area. The sooner you find out where the nearest Home Depot, grocery store, and gas station are the better. Also, take note of the garbage collection day and the phone number to the pizza delivery.
7. Attend a retreat. Everyone needs some time to relax, restore, and reconnect. If you are a veteran, there are special retreat programs for you and your family. Check out the Coming Home Project for more info about retreats especially created for veterans and service members.
8. Join a newcomer club. One of the nice ways to meet new people is by joining any ongoing newcomer clubs. Expand your social network and know the dish about the best dry cleaner in town, the nearest gym, and entertainment venues.
9. Buy tools and repair items. I bet you will need to hang or drill something. Every new homeowner needs a well-stocked tool box.
10. Celebrate! Savor the experience of getting your very own home by celebrating. You don’t need to throw a huge party. A little housewarming dinner with your family and closest friends should do it.

Want to do these things but you don’t own a house yet? Visit the VA Loan Store to get started.

Related posts:

1. Save Money and Time with a VA Home Loan from the VA Loan Store!
2. Loan Officer or Realtor: Who Do You Get First?
3. Rate Shopping For A VA Loan? Read This First!
4. How to time your VA loan financing.
5. CASH for Investors

Whether you are applying for VA loan or any mortgage loan, a borrower has to pay the closing costs. But what exactly are you supposed to and not supposed to pay? If you’ve already began your research, you will notice words such as allowable and non-allowables. Veterans applying for VA mortgages or loans are only supposed to pay the “allowables.” David Reed, columnist for Realty Times and Mortgage Originator magazine, has created this easy to remember mnemonics (ACTORS) about the allowable closing costs for veterans:

Appraisal (aka Notice of Value, NOV) or inspection charges

Credit report fees

Title or title-related charges

Origination fees and points

Recording charges

Survey fees if needed

Now that you have an idea of what the allowables are, let’s take a quick look at the non-allowables. Here is a list of fees that CANNOT be charged to a veteran:

Document preparation, loan closing or settlement, attorney services for anything other than title work, preparing loan papers for conveyance fees, locking in interest rate services, photographs, stationery, mailing or postage charges, telephone calls, amortization schedules, general overhead, membership, escrow charges or fees, document preparation and / or assignment, notary, loan application, processing, loan broker or finders fee other than your mortgage company, trustee’s fees or charges and tax service.

Although a lender is not supposed to charge for non-allowables, there is such a thing as a “One percent Guideline.”  This simply means that even though there are non-allowables, “the lender is allowed to charge a flat one percent of the loan amount and apply that fee to the various miscellaneous lender charges the veteran may not otherwise pay for,” according to Reed.

Want more tips about VA loans and mortgages?  Always visit our website www.NoBSVALoans.com or subscribe to our RSS feed for more useful and free information right at your fingertips.

Related posts:

1. Good Faith Estimate 101 for Veterans
2. To Pay or Not to Pay? The VA Loan Funding Fee
3. How To Find The Right VA Lender
4. Rate Shopping For A VA Loan? Read This First!

Researching is very crucial if you are currently considering a VA home loan. And while you’re at it, you can’t help but discover some funny information about getting this type of loan.

Here are the truths behind the five of the most common VA loan myths:

Myth No. 1: I have bankruptcy on my credit report and lenders won’t make a mortgage loan so I have to wait for ten years for the bankruptcy to be removed from my report.

The Truth: This is absolutely not true. What’s good about VA loans is that it has a more lenient credit guideline. It allows 2 years to pass before issuing a mortgage after bankruptcy.

Myth No. 2: I can only apply for a VA loan from the US Department of Veterans Affairs.

The Truth: Actually, VA does not make loans. You can apply for a VA loan with any mortgage lender as long as the lender participates in the VA home loan program. A good example would be the VA Loan Store.

Myth No. 3: I have to be on active duty in order to qualify for a VA home loan.

The Truth: Your eligibility is based on your current and past service. According to the VA General Rules for Eligibility, you are most likely eligible for a VA loan if you have served at least 181 days from 1964 to today.

Myth No. 4: VA loan limits are lower than the regular, non-government loans.

The Truth: Loan limits usually change every year especially if there’s a ten percent increase in home prices. Currently, zero downpayment VA loan limits range from $417,000 up to $1.094 million.

Related posts:

1. Credit Requirements for VA Loan
2. VA Loans – An Overview
3. Understanding YOUR VA entitlement numbers