In today’s market, military veterans have more to worry about than regaling their companions with stories from the war. Military veterans today are considering getting a second mortgage or redo their mortgage. There are some concerns that need to be addressed. One is the actual market value of the property. The economic conditions have affected value more than any other time in the last thirty years. With all that said, it is no wonder that a mortgage refinance VA loan is a major concern on many veterans’ minds.
In order to determine the true cost of a mortgage refinance VA loan, it is important to understand how lenders approve veterans. Lenders have tighter approval criteria since the mortgage crisis and the mortgage refinance VA loan rate is determined by how much risk the lender is exposed to when financing the applicant. The risk is figured taking into account the amount of equity in the property. The length of the loan also factors in. Aside from that the credit score and income help calculate the mortgage refinance VA loan. The credit manager who analyzes this data usually figures things such as debt to income ratio and length of employment to come up with a proposal for the review board that make the call.
Veterans can help themselves though before applying for a loan. The first thing to do is to clean up your credit. Order a credit report from each of the three major credit reporting agencies. Scan it for errors or negative marks and rectify those before proceeding. Pay down your debt and make sure all accounts are current on your credit report. This might help with the mortgage refinance VA loan and save thousands.
The better prepared one is when entering a refinance the better off the home owner is. In order to get the best mortgage refinance VA loan, it is better to research several lenders. Narrow the list to two or three. A good source is to talk to real estate agents you know and trust. They know which lenders are easiest to work with. When the due diligence is completed then it’s time to proceed. Once you have found a lender you are comfortable with, don’t be afraid to read the fine print and ask lots of questions. You want to know what you signing up for before committing to the terms of the agreement.