Q&A about VA Loans

Military Father and Son

VA loans are $0 down payment mortgage options available to veterans, service members and select military spouses. VA loans are issued by private lenders and guaranteed by the U.S. Department of Veterans Affairs (VA).

Since its inception in 1944, more than 22 million VA loans have helped veterans, active duty military personnel and their families purchase homes or refinance mortgages.

How does a VA loan compare to a traditional/conventional home mortgage? Read on.

What is the down payment?

  • VA loans: 0% down.
  • Conventional loans: Up to 20% down.

Do I have to pay mortgage insurance?

  • VA loans: VA loans do have a form of mortgage insurance, the VA Funding Fee. It is usually 3.3% and financed into the loan up front. If the borrower separated from the military with a qualifying disability, the funding fee is waived to 0%.
  • Conventional loans: If buyers do put down less than a 20% down payment, they must pay for private mortgage insurance.

Are the interest rates for VA loans competitive?

  • VA loans: The VA backing gives lenders a greater degree of safety, which means the interest rates can be more competitive than non-VA loans.
  • Conventional loans: Without government backing, banks take on more risk with conventional loans, which can result in less-competitive interest rates.

How easy is it to qualify for a VA loan?

  • VA loans: Because the loan is backed by the government, banks assume less risk and have less stringent qualification standards for VA loans, making them easier to obtain.
  • Conventional loans: Conventional loans require stricter qualification procedures that can put homeownership out of reach for some homebuyers.

Can I do a cash out refinance? 

  • VA loans: Borrowers can do a cash out refinance up to 100% of their home’s value.
  • Conventional loans: Borrowers with conventional loans must leave some equity in their home when doing a cash out refinance.

What else should I know about VA loans? 

  • VA eligibility is re-usable. A lot of people think they are only eligible for a VA loan one  time, but they are able to get VA loans more than one time.
  • You can have more than one VA loan at a time. It’s a myth that you can only have one at a time.
  • VA loans are assumable.

 You or someone you know may be the perfect fit for a VA loan. Contact a loan officer today to learn more about VA loans and other types of home loans that may be a good fit for you.

Do you want more information about VA loans or grants? Find it here or call us today.  

 

Your Attic May Be the Storage Solution You Are Looking For

 

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Your attic may be the solution to your storage problems. But not all attics are the same, so before you begin using the space above your house, make sure you do some careful planning. Here are some tips to get you started.

Assess your space. If you have never used your attic for storage before you’ll want to really take a good look at the space you have. How much room is usable? Is it structurally sound for storage? How much weight can it hold? Storing a few holiday decorations is very different from storing furniture. This may be a good time to contact a contractor for some professional advice.

Test the weight it can hold. Some attics have solid, structurally sound floors. Others may require some good reinforcement. If you are able to walk in your attic, do so carefully. The supports may not be as good as your regular floors. Try to walk where you know there are beams.

Check for needed repairs. This space is often forgotten by homeowners, but not by squirrels and mice. Check for signs of rodents, including rodent droppings. And check all electrical wiring. Rodents often chew wires so be extra cautious.

Buy plastic storage bins. Use plastic bins rather than boxes to keep rodents away. They also will provide better protection if your roof leaks.

Hang hooks and shelves. This should be an easy task because the walls are usually unfinished so you can see exactly where to hang these.

Check out the nooks and crannies. You can usually push storage crates into some unusual areas.

Plan carefully for what to store in an attic. This space can be a great hiding place for items you don’t use often. It’s not a good space for candles, photos, paintings or other items that can be damaged by fluctuating temperatures and changes in humidity. Although it may be tempting to store family heirlooms in the attic, you may want to consider places that have more consistent temperatures and humidity levels for preservation.

Whether you use your attic space for storage or not, make sure you check the space out periodically. You don’t want to be surprised by squirrels making their home or leaks you didn’t know about. A good once-over every few months will keep this space ready for you when you need it. 

Lighten the Load: Some Tips for De-Cluttering Your Home

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De-Cluttering – It is both an art and a science. Making sure you keep what you need and really want, and finding a good home for things you don’t is harder than it sounds. If you are getting ready to move, it’s time to de-clutter. If you’re already in your home, it’s also time to de-clutter! Here are some simple tips to make this task a little easier.

Decide what is trash and what is treasure. If you have been saving a t-shirt from a fundraiser in 1994 and it no longer fits or smells like the gym, it’s trash. If you have a handwritten letter from your great grandmother, that is probably a treasure. This first step is hard because you have to determine what is important to you.

Determine what to do with what you’re getting rid of. You have a few choices – Donate items to a reputable donation center such as Goodwill, the Salvation Army or your favorite charity; sell items; give them to friends or family; or throw them away.

If you have valuable items and you’d like to sell them, you have a few options. You could bring everything out for a garage sale, or, you can list them online. Craigslist is the obvious choice for selling large items such as furniture or appliances that you don’t want to ship. Ebay or Craigslist can work for smaller items. A lot of people post items on Facebook, as well.

Go digital. If you have photos, home videos, or scrapbook items you want to store but want to take up less space, go digital. You can scan these items yourself or you can have them professionally scanned saving you hours but costing you some money.

Once you have gotten rid of things, you want to make sure you are always clutter free. Try these tips:

When you get something new, get rid of something old. One new blouse in, one item of clothing you never wear out. A new kitchen gadget in, an old kitchen gadget out.

Is there something you can’t decide if you will use again? Give it an “expiration date.” Mark your calendar and if you have not used that item by the expiration date, get rid of it.

Do you buy on impulse? Wait 48 hours before buying something. You may realize in 48 hours that you really don’t need it after all.

And get rid of some of these items. You really don’t need them:

  • The extra buttons that came with your new sweater. You know – the buttons you put in the drawer with the rest of the buttons.
  • Old t-shirts, gym towels and socks that you really will never wear to the gym again.
  • Holiday cards – Unless there is a sentimental value to these cards, you’re probably not going to read them again.
  • Old wall calendars.
  • Ticket stubs and receipts (that are not for tax purposes). Why are you keeping these anyway?
  • The magazines you are going to get to some day.
  • Invitations to events that have past; party favors
  • Recipes you tried but didn’t like.
  • Books that weren’t life changing and you’re not going to read again.
  • Storage containers that no longer have their lids.
  • Instructions for appliances you know how to use.
  • Old computer cords.
  • The packets of condiments you picked up at Chinese food restaurants and fast food restaurants.

Feel the difference when you lighten the load!

Your Offer Can Beat a Cash Offer!

couple in front of new house

The word on the street is that the sellers’ market is slowing down. But that doesn’t mean cash offers are a thing of the past. For a seller, cash offers may mean a faster closing, but they also may mean a lower offer and extra demands in the deal. Here are some ways you can still “win the deal,” even if you’re not paying cash.

1. Prove you are ready to buy: Get a Performance Guarantee with Universal Lending. Our Performance Guarantee is a conditional loan commitment that guarantees your earnest money up to $10,000. Essentially, you’re putting in an offer that has already gone through underwriting. Other homebuyers may offer a pre-approval letter, but a Performance Guarantee is even better.

2. If you don’t have a Performance Guarantee, get a pre-approval letter. Your pre-approval letter says that you are qualified to buy a home. Other buyers will have this letter, so if you don’t, you are at a disadvantage.

3. Choose a lender that can get deals done quickly. Universal Lending is known as a quick-closing lender and our loan officers would like to help your offer beat a cash offer.

4. Make a higher offer. Even if your buyers are eager to sell, more money may sweeten the deal. Cash buyers often offer less for the home, in exchange for the fast closing, but at the end of the day, they are still hoping to get as much money as they can. You may be surprised that you don’t have to offer thousands of dollars to beat the cash offer; a higher offer of just $1,000 may be enough of an incentive.

5. Offer a bigger down payment or more earnest money. The more you put down, the more serious you seem about your offer.

6. Make your best offer your first offer. Assume that there will be little or no negotiation on your offer and make your best offer right off the bat.

7. Learn what the seller’s terms are. A good real estate agent will find out what the seller is looking for. Does the seller need to stay in the home until they find a place to move? Are they looking to sell quickly and move out right away? Knowing this information ahead of time will help you make an offer that has a better chance of getting accepted.

8. Be flexible. Can you be accommodating on a closing date? Can you ask for fewer repairs? A little flexibility may go a long way.

9. Get another vote of confidence from your lender. An updated pre-approval letter is a great start. A phone call or video email from your loan officer is even better. One final push saying how strong of a buyer you are may be the key that helps you close the deal. A confident lender will instill confidence in the sellers.

When you’ve found your dream home, you want your dream home! Make sure you give it your best shot when you make your offer. Happy homeownership!

Why Winter May Be the Right Time to Buy Your New Home

Daughter and Father near the Fireplace

It may be turning cold outside but fall and winter just may be the best time for you to get a hot deal on a new home. Don’t let the blues of shorter days keep you from house hunting in the fall winter. There are some good reasons that now may be the best time to buy your new home.

Fewer buyers are house hunting.
Most home buyers shop in the spring and summer, when homes pop up for sale like tulips. Because there are so many fewer buyers, winter home buyers are more likely to get a good deal on the house they want.

Lower prices.
With fewer buyers in the market, home sellers often lower prices to attract the buyers who are out there.

Sellers are motivated.
Motivated sellers may be a great thing for home buyers, as they are more willing to negotiate. When you find the house you are looking for, you may be able to negotiate on price, closing costs, repairs, and even items such as appliances or other items you want included in the sale.

Inspections may turn up more or different items in the different seasons.
You will have the opportunity to see the house at work in the winter. Gutters, windows, heating systems, etc. get put to test during the colder months. You may miss some of the curb appeal of the manicured lawn when shopping in the winter, but you’ll know if the plumbing is working at full capacity and able to handle extremes.

Don’t miss out on buying your dream home because it’s cold outside. Seize the opportunity to put the season to work for you.

Q&A about VA Loans

Military Father and Son

VA loans are $0 down payment mortgage options available to veterans, service members and select military spouses. VA loans are issued by private lenders and guaranteed by the U.S. Department of Veterans Affairs (VA).

Since its inception in 1944, more than 22 million VA loans have helped veterans, active duty military personnel and their families purchase homes or refinance mortgages.

How does a VA loan compare to a traditional/conventional home mortgage? Read on.

What is the down payment?

  • VA loans: 0% down.
  • Conventional loans: Up to 20% down.

Do I have to pay mortgage insurance?

  • VA loans: VA loans do have a form of mortgage insurance, the VA Funding Fee. It is usually 3.3% and financed into the loan up front. If the borrower separated from the military with a qualifying disability, the funding fee is waived to 0%.
  • Conventional loans: If buyers do put down less than a 20% down payment, they must pay for private mortgage insurance.

Are the interest rates for VA loans competitive?

  • VA loans: The VA backing gives lenders a greater degree of safety, which means the interest rates can be more competitive than non-VA loans.
  • Conventional loans: Without government backing, banks take on more risk with conventional loans, which can result in less-competitive interest rates.

How easy is it to qualify for a VA loan?

  • VA loans: Because the loan is backed by the government, banks assume less risk and have less stringent qualification standards for VA loans, making them easier to obtain.
  • Conventional loans: Conventional loans require stricter qualification procedures that can put homeownership out of reach for some homebuyers.

Can I do a cash out refinance? 

  • VA loans: Borrowers can do a cash out refinance up to 100% of their home’s value.
  • Conventional loans: Borrowers with conventional loans must leave some equity in their home when doing a cash out refinance.

What else should I know about VA loans? 

  • VA eligibility is re-usable. A lot of people think they are only eligible for a VA loan one  time, but they are able to get VA loans more than one time.
  • You can have more than one VA loan at a time. It’s a myth that you can only have one at a time.
  • VA loans are assumable.

 You or someone you know may be the perfect fit for a VA loan. Contact a loan officer today to learn more about VA loans and other types of home loans that may be a good fit for you. 

 

Scaredy Cat Sellers: You can sell your home and move into your dream home in this market

Arrow Shaped Home For Sale Sign

“I’d sell my house but where would I go?”

In Colorado and across the hottest housing markets in the United States, potential home sellers are asking themselves this very question. “Where will I go when my home is sold?” Scarcity has reared its head, and in turn, is helping to drive housing markets into some of the lowest inventory levels ever seen.

But is burying your head in the sand and waiting for the market to change the best way to make financial decisions that will impact you and your family now and in the future? Perhaps there are ways to put this sellers’ market to work for you as a home seller and a home buyer.

According to some of metro Denver’s Realtors, what you need in a market like this is a good team on your side, a bit of preparation before you begin the process of buying or selling, and a healthy dose of gumption. And they all agree that you can sell and buy a house with those pieces in place.

Why make a move now in this market?

Home prices and mortgage interest rates are continuing to rise. So, although staying where you are and waiting for the market to “fix itself” may seem safe, you’re betting against yourself. As interest rates rise, the amount a buyer qualifies for goes down. As time goes by and home prices rise, buyers may find that they qualify for less home.

“It’s a unique time to make a move in the Denver Metro real estate market,” says Jamie Nevers, Real Estate Advisor with the Legends Team of Your Castle Realty. But selling your current home and buying your next dream home is possible. Sellers can use the equity in their home, buy a home that better suits their needs, and use the equity they have accumulated to put a larger down payment on a home, while keeping their mortgage payments close to what they are accustomed to, she notes.

“Just because you are making a move doesn’t mean that you have to overpay or have a larger mortgage payment to reach your goals,” she says.

Julie Voorhees, a Realtor with Keller Williams Action Realty, echoes Nevers, adding that to forge ahead in this market buyers and sellers must get in the right mindset and have reasonable expectations and a strong team supporting them, whether they are buyers, sellers or both.

“In this market we have been experiencing ‘seller greed’ and ‘buyer fatigue,’” says Voorhees. Now is not the time to enter the market on your own. “The best way to be positioned to buy and sell is to have an excellent Realtor and lender… This is a skills market. Hire someone who has the skills.”

Why do sellers need a Realtor in a market like this?

First and foremost, if homeowners are selling their home with the intention of moving to another, they need to have their “ducks in a row,” before they make a move. They need to be agile and ready. A Realtor is positioned to help them negotiate offers on their current home, find the right home to purchase, and get their offered accepted on the new home, something that can prove challenging. Now is not the time for sellers or buyers to go-it-alone.

But what if a homeowner who wants to move still feels nervous about putting out the “for sale” sign?

Amy Hitch, a Realtor with HomeSmart Cherry Creek, acknowledges that for sellers who want to make a move now, letting go of your current home feels risky. The looming question, “Where will I go?” never disappears.

“I remind them that I am here to help them through the entire process. You never know what a day will bring, and what will be listed and on the market tomorrow,” she says.

She also educates her sellers who are looking to move to their next home about “buy before you sell” programs to ensure homeowners are ready to make a move when the sold sign goes up in their yard.

Voorhees complements this suggestion with other ways that home sellers can make their decision to sell and move less stressful. She reminds her sellers that they can ask for a lease back period of 60 or more days, which gives the sellers time to purchase their next home, or they can ask for a delayed closing, again providing sellers the cushion they need.

Nevers offers yet another approach – She recommends being proactive, having a pre-approval letter from the lender and being ready when your home goes under contract to start looking for your new home immediately. She works with her buyers to be strategic and practice patience.

“Start looking in the areas you are interested in purchasing as soon as possible and educate yourself on what a strong offer looks like in that area. When you do find the perfect home, you can put your highest and best offer in without hesitation,” she concludes.

As with anything in real estate, these professionals all agree that there is no one-size-fits-all approach in this market, but with the right team, the right amount of persistence, and a bit of gumption, there is something for every seller and every buyer, and they can help any scaredy cat seller off the fence and into their new home