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

Ever wondered about the VA Loan process?  Watch this video and wonder no more!

Related posts:

1. Loan Officer or Realtor: Who Do You Get First?
2. How to time your VA loan financing.
3. Rate Shopping For A VA Loan? Read This 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

Understanding your entitlement benefit is tricky business. The government likes to complicate matters and many veterans get fooled when they finally see their entitlement figures. In this article, we will uncover the mystery behind the VA entitlement numbers.

What is VA entitlement?

VA Entitlement in the VA home loan process is the guaranteed amount that the Department of Veterans Affairs will pay to the lender should the borrower go into default on the loan. The entitlement is nothing more than a form of insurance for the bank.

Who is eligible?

Active duty service persons are eligible for a VA Entitlement, unless they are inactive status. If inactive status, you need to submit a Form 26-1880 to your local VA office in order to determine eligibility based on time served, discharge status and other criteria.

Where do I find my entitlement benefits?

The amount of VA Entitlement will be on the Certificate of Eligibility, and this form must be obtained in order determine eligibility status for a VA home loan.

What are the entitlement figures?

Basic entitlement – Is $36,000 and is for loans up to $144,000.
Bonus entitlement- Is $68,250 and is for loans exceeding $144,000

Does your certificate of eligibility show $36,000?

For some unknown reason, the government does not differentiate between basic entitlement and bonus entitlement and makes things confusing by showing $36,000 as the maximum vested amount. Don’t be alarmed, if your COE shows $36,000 you have all the maximum VA benefits available.

VA entitlements stay with the loan even if you don’t.

VA entitlements do not expire until the loan is paid in full; even if the VA loan has been transferred to another individual.

Re-using your VA benefit of entitlement:

If VA home loan is transferred, you cannot get another loan or restore the entitlement until the original loan is paid off.
Cannot re-use entitlement if VA home loan has been foreclosed on.

VA Entitlement can be restored under these conditions:

• The veteran has paid off the original VA home loan and sold the property.

• “One-time” allowance of restoring entitlement, if original VA loan used to purchase the property is paid and veteran still owns the property.

• If VA home loan has been transferred, the qualified veteran (buyer) agrees to assume the loan and substitute their entitlement for the same amount of entitlement originally used by the veteran who sold them the property.

To order your certificate of elgibility click here.

Related posts:

1. 4 VA Loan Myths Demystified
2. Credit Requirements for VA Loan
3. VA Loans – An Overview
4. Al Louis says “You are the real deal!”
5. NO B.S. Certificate of Eligibility Testimonial

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

Even though the VA loan is more lenient than conventional mortgage programs, there are still credit requirements in order to be approved for a VA loan.   Most banks require a minimum 620 credit score and 12 months mortgage history with no lates.

Types of imperfections on a credit report that may affect the VA loan approval process:

• Collections
• Late payments
• Judgments

Payment History Factor

Re-payment history is an important factor in getting approved for a VA loan. Your rental and mortgage payment history signify your ability to pay your housing payment and will better qualify you for a VA loan.

If you lack credit history, provide explanations for any of the following:

• If you are a veteran who has been recently discharged and have not been able to establish credit
• Use cash instead of credit on a regular basis for bill paying and purchases
• Veteran has not used credit since reconciliation of bankruptcy and judgments

Bankruptcy

Bankruptcy does not immediately disqualify a veteran who is applying for a VA loan. If you have had a bankruptcy discharged over 2 years previously to applying for a VA loan it may not be considered. If the bankruptcy discharge was within 1-2 years of applying for a VA loan there are a couple things that are taken into consideration that may still help qualify a veteran:

1. If you have obtained credit following the bankruptcy and made satisfactory timely payments
2. If reasons for Bankruptcy were above and beyond the control of the veteran-Loss of job, medical bills, divorce, loss of a business etc.

Foreclosure

Foreclosure is still another issue that will be a deciding factor in qualifying a veteran for a VA loan. The same rules apply as did with bankruptcy, but if the foreclosure is on a VA loan that may change the amount of entitlement available to be used.

Plan ahead and improve credit

When applying for a VA loan, work in advance to reconcile issues on your credit report by paying collection accounts in full or setting up payment plans with judgments against you.

Here are several things you can do:

• Get a free copy of your credit report in order to review
• Letters from creditors stating balances have been paid in full
• Pay credit card bills down to at least half of what open credit in on card
• Secured credit cards can help re-build credit

Close excess credit cards that are open only keeping necessary and low interest rate credit cards open—to much open credit can hurt you qualify for a VA loan.

For Recommended Credit Repair companies -

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!

Related posts:

1. Recommended Credit Repair Companies
2. 4 VA Loan Myths Demystified
3. VA Loans – An Overview

Iam a veteran applying for a home loan but I’ve lost a copy of my DD214 after my recent retirement from overseas duties.  I have no idea how I am going to obtain a copy of my DD214 form.  Please help!

Don’t fret if you’ve lost a copy of your DD214 form because things like this happen.  Have no idea what a DD214 form is?  What if you can obtain a free copy of your DD214 by simply visiting a website?  Read on to know more.

What is DD214 form?

The DD214 form or Certificate of Release or Discharge from Active Duty is simply a military service member’s discharge paperwork.  This document is issued by the US Department of Defense as a proof of one’s military status – that is whether you are retired, separated, or discharged from active-duty military.  This paper also shows the nature of your discharge as well as your status with the National Guard or Reserve Unit.

Why do I need a copy of the DD214?

This document is commonly used to secure veteran benefits such as VA loans or mortgages. It is very important to keep multiple copies of the DD214 as it is the most important military document in your records.  The lack of a DD214 form may slow down VA processes.

Where do I obtain a copy?

Normally, you will have to request for a replacement copy by writing a letter to the National Personnel Records Center.   Don’t forget to include your name, rank, social security number, and any deadlines related to your request.

Now if you separated or retired from an overseas location (just like the guy earlier), you will have to contact the orderly room, First Sergeant or Sergeant Major in charge where you separated or retired to get a copy directly from your final base as DD214 form may be delayed overseas for up to a year.

But wait, there’s an easier way!

Remember how much we love helping veterans?  If you need help in obtaining a copy of your DD214, simply go to www.MilitaryDD214.com and simply leave your name and email address and we’ll help you get a free copy of your prior service records.

Free?! Are you serious?  There must be a catch.

The thing is, there is NO catch!  We just want to help and if you’re concerned about your privacy, www.MilitaryDD214.com will NEVER sell or your name or email to any company or person.  This is a FREE service provided by former Veterans.  Plus, we are a Licensed VA Mortgage Lender recognized by the Department of Veteran Affairs and the Office of Financial Regulation in the State of Florida.  So relax and don’t let the lack of a DD214 form stop you from buying your VA home.

No related posts.

When deciding to apply for a VA loan, there are several things to consider.

• Am I eligible to qualify for a VA loan?

• Have I done enough research in order to decide what may be the best and most beneficial VA loan program for my situation?

Before starting the financing process, it’s always a good idea to contact a VA mortgage specialist to be sure your moving in the right direction.

The VA mortgage representative is your best resource for determining the VA Loan limits and also calculating payments on your new loan.

Understanding VA Loan limit guidelines.

Here is how it all works

Veterans receive an entitlement, which means the amount that the government guarantees to the lenders that they will pay in the case in which the veteran is not able to repay the mortgage.

The amount of “entitlement” for a VA loan is $36,000 for any mortgages under $144,000 and 25% guaranteed with loan amounts that are above $144,000 up to $417,000.

The maximum guarantee for a veteran of entitlement is set at $104,250, which is 25% of the maximum amount that can be borrowed, provided the veteran has this amount of entitlement left.

While Veterans can qualify for financing above the VA loan limit, banks typically require 25% down payment on the difference. (For example: $500k purchase price with a $417 VA loan limit = $20,750 down) And just for the record, banks have the ultimate veto power and can require the veteran to cover all the financing above the reported VA loan limits. Using the same transaction from above, that could mean bringing $83,000 to close. A $62,250 difference!

This is why it’s critical you understand the maximum VA loan limit is not determined by the Veterans Association, but by the lending institution the veteran is applying with.

Our recommendation

Don’t get caught unprepared! A VA loan specialist is your best resource and can easily handle these concerns. Find an expert you trust and get the hassle free closing you deserve!

No related posts.

Construed with the aim of rewarding American Veterans, a VA loan is the kind of mortgage loan that helps veterans, their survivors and families realize the dream of home ownership. This is done with the help of the U.S. Department of Veteran Affairs who guarantee the loan provided by qualified lenders.

The loan guarantee program, which came into existence after the United States Congress passed the Servicemen’s Readjustment Act in 1944, has been one of the most important benefits that were distributed under the act. The guarantee makes sure that the lender gets his money back while at the same time removing the clause of down payment for the veteran.

Down to the details…

Let’s talk about eligibility conditions and what makes a VA loan special.

Considering the fact that more than 27 million service personnel and veterans are eligible for the VA loan, the factors deciding who is eligible and who is not become quite important as mentioned below:

Veterans must meet these conditions: (Short list)

• Veterans must serve for a period of 90 days during wartime or 181 days continuously during peacetime on active duty and possess honorable discharge.

• Must have two years of service if the veteran enlisted in the forces after Sept. 7, 1980 or served as an officer and enlisted after Oct. 16, 1981.

• National Guard and Reservists must have 6 years of service to become eligible for the VA loan and meet all required weekend drills etc.

If you don’t fall into any of the above categories please consult our complete list of VA eligibility standards found at: VA loan eligibility guidelines

100% Financing and NO mortgage insurance!

The VA loan guarantee in essence makes a veteran eligible for financing up to 100 per cent with no private mortgage insurance.  Maximum loan benefits are now currently $417,000 and over 1 million in select areas.

The key point is that you have to qualify for the VA loan and that you do not just automatically become eligible for it. These VA loans are funded by qualified lenders such as banks and mortgage companies. Also, VA loan benefits can be used only when you are purchasing or refinancing a primary residence.

Related posts:

1. 4 VA Loan Myths Demystified
2. Understanding YOUR VA entitlement numbers
3. Credit Requirements for VA Loan

I realize that humans are conditioned to shop. Without shopping, it would be impossible to find those golden nuggets in life called “good deals.”

Shopping is satisfying our gut instinct by removing suspicion and doubt that a better deal exists. Therefore, when we shop, we are essentially selling ourselves.

We become “sold” when our gut instinct says “hey, I am happy with the facts we gathered here… let’s go ahead and make the purchase.” Shopping is more than looking for a good deal. Shopping is also conversation and bragging rights.

When it comes to VA mortgages, we tend to shop for a home loan the same way we shop for everything else. We look for the lowest interest rates and when we find them, we act on emotion and gut instinct. Unfortunately, this is a recipe for disaster.

• In this article I’ll examine mortgage rates and the false perceptions surrounding them.

• I’ll prove to you that it’s impossible to accurately shop for VA interest rates over the internet (unless you know what your doing.)

• You’ll also discover why cold calling banks and asking for VA rate quotes is a colossal waste of time.

• And just when you think it can’t get any sweeter- I’ll teach you how to become a true mortgage ninja by removing the VA rate question from your vocabulary and learning to focus on what really matters.

Without further adieu, the first lesson is to stop comparing yourself to everyone else when it comes to interest rates.

Why? Because interest rates are like DNA, and the rate you get is unique to your overall financial situation. Credit score, debt to income ratio, equity position, property location, and loan type ALL play a factor in final interest rate. To accurately quote rate you must have all these questions answered. No exceptions!

By understanding what is needed to accurately quote rate, you should also be able to see why cold calling unknown banks is a complete waste of time. Stop doing it.

To be fair, banks do fish for your business.

A fisherman uses “bait” to catch fish. Banks use “interest rates” to catch rate shoppers. Banks understand that the typical shopper is not super savvy and banks use interest rates as lures to bring in customers or solicit calls. Some banks will go as far as publishing rates they know only a small percentage of the population can qualify for. These are often called “teaser rates.” Why would banks do such a thing you ask? Because uneducated rate shoppers “bite” every time.

To further my point, I am posting an email solicitation that I received from Bankrate.com

Bankrate.com, the internet’s leading aggregator of financial rate information can help grow your business by reaching our highly qualified and desirable audience. With an average FICO score of 720+, our loyal audience is coming to us because they are self directed, web savvy individuals that are in-market, in the final stage of their search and ready to transact.
The current mortgage and financial markets are driving a record number of in-market mortgage and home equity prospects to the Bankrate web site. A listing on Bankrate’s mortgage rate tables will enable you to capitalize on this tremendous influx of in-market mortgage consumers.
You can manage your rate table listing directly from your computer:

• YOU update your products and rates – up to 6 x’s / day
• YOU determine the amount you would like to spend per day/week/month
• YOU decide when you want your listing to be “live” and when to pause it (on weekends, if you’re out of the office, etc.)

Your listing can be “live” within 48 hours of deciding to place your product(s) on Bankrate.com. Take advantage of the tremendous consumer interest in the mortgage market right now!

Since there are no set up fees or contracts, you have the perfect opportunity to test the water and find out first hand how we will WORK for YOU!

If you are interested in listing your company on our Mortgage Rate Tables and would like to receive more information about our CPC (Cost Per Click) advertising program, feel free to either call or email me.

After reading this email, I hope you’re beginning to see the light. Millions of people every day use Bankrate.com and similar websites to research VA mortgage rates. They consequently base their buying decisions on paid advertisements designed to bring in customers. And while I am not taking anything away from these sites, I am suggesting that what you see is NOT what you get.

Cost also affects quoted VA interest rates.

If I told you my company offers 30 year fixed rate VA loans at 1% would you believe me? You should, it’s absolutely true! What I failed to mention is the cost of obtaining such a deal would be outrageous. You would have to make a deal with the Devil and give up your first born! But hey- it’s technically possible.

Finding the truth. (In simple terms)

Money is sourced from the same places.

Most financial institutions fund mortgage loans and eventually look to sell them in the secondary markets. The secondary markets “cash out” the lending institutions that in turn allow them to continue funding loans. It’s a continuous cycle. VERY FEW lenders source, fund, and service their own loans. This is another reason why rate shopping is a fruitless endeavor. No matter what name you see on the lobby doors, the money is bought and sold to the same investors. This fact levels the playing field and keeps interest rates very, very similar regardless of the institution.

How to find current mortgage rates for a 30 year fixed rate note.

If you’re looking to rate shop, look no further than the 10-year Treasure Note. This is the principal driving force behind the 30-year fixed rate note. All you need to do is locate the 10-year note and add 2%. As of today the 10-year is 3.125 add ( 2%) and you get 5.125% (today’s 30 year fixed rate) I recommend Bloomberg for this activity.

Track interest rates by yield.

If the yield is down, rates are going up. If the yield is up, rates are going down. Bloomberg also provides an hourly yield change column for at-a-glance calculations.

The key to finding the right VA Lender.

Specialized knowledge and customer service are the two characteristics that separate lenders. Believe me when I tell you there are massive differences. This is where consumers should be focusing their buying efforts. Larger institutions will offer more selection, but have fewer specialized niches. I personally recommend seeking out smaller boutique lenders that focus exclusively on VA loans. Your chances of finding an expert in this arena will be much higher.

After you locate the right lender(s), now is the time to place the call and start interviewing them. Find out about licenses, training, and get a good feel for how they operate. Once you narrow down your prospects to one or two lenders, go ahead and start the application process.

Next, you’ll want to request a written Good Faith Estimate and compare everything. Look at both costs AND interest rates quoted. With VA Loans, make sure the lender calculated escrows. This is an important figure to have especially if you plan on using seller paid closing costs.

By following these simple steps, buyers will dramatically improve their chances of securing the right financing with the best rates. Getting a great mortgage can be complicated, but by staying focused, you’ll avoid the common pitfalls and traps associated with chasing interest rates.

Related posts:

1. VA Loan Rate Watch 9-21
2. VA Mortgage Rate Watch 9-14
3. VA Mortgage Rate Watch
4. Good Faith Estimate 101 for Veterans
5. How To Find The Right VA Lender