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Tuesday, September 15, 2020
Tuesday, January 29, 2019
VA Financing for Your Home
Your VA Home Loan Explained
One of the most significant benefits of military service is the VA home loan which can help you purchase a home or refinance an existing loan. This gives you the opportunity to get a mortgage with a competitive interest rate as well as a lower cost at closing without prepayment penalty. VA Home Financing is one of the few options available today for no money down mortgage financing. In addition, it gives increased buying power as the allowable loan-to-value and debt-to-income ratios are more generous than for conventional financing. These benefits give you the potential to buy a more expensive home than you might otherwise have been able to afford.The VA does not actually loan you the money. They guarantee a loan made to you by a lender i.e. banks, savings & loans or mortgage companies. If a home loan is approved by your lender, the VA will guarantee a portion of that loan to the lender.
There is no maximum to the amount of the loan, but the VA does have a limit to how much it will guarantee. This limit can vary around the country and is based on which State & County the property is in. To find out what your area limits are click here:
www.militarybenefits.info/va-loan-limits-by-county
Benefits of VA Home Loans include:
1. No down payment as long as the sale price does not exceed the appraised value.
2. Loan-to-value ratio of 100%
3. Back-end debt-to-income ratio of 41% under certain circumstances
4. No private mortgage insurance
5. Limits on Closing costs, which may be paid by the seller
6. No penalty for early payoff
7. Loan is assumable by another qualified veteran borrower
8. Ability to apply for a new loan two years or sooner after a bankruptcy
9. The VA has no loan limits, only a maximum that can be borrowed with a zero down payment.
Are You Eligible for a VA Loan?
There are several categories for eligibility, but here are some of the major ones:1. Veterans and service persons who have served more than 181 active-duty days during peacetime, unless discharged or separated from a previous qualifying period of active-duty service.
2. Veterans who served during WWII, Korea or Vietnam, if they served for 90 days and were honorably discharged.
3. If you have served for any period since August 2 1990, you can also qualify if you have served 24 months of continuous active duty, or the full period that you were called to active-duty (at least 90 days).
4. Have completed a total of 6 years in the National Guard or Selected Reserve.
5. Any spouse (who has not remarried) of a veteran who died while in service or from a service related disability, or a spouse of a serviceman MIA or a POW.
For full details of eligibility requirements click here:
https://www.benefits.va.gov/homeloans/purchaseco_eligibility.asp
What if you have lost or destroyed discharge papers? You will need to obtain a Certificate of Military Service. This can be achieved by completing GSA Form SF-180 and can be completed online at:
www.archives.gov/veterans/evetrecs
You will need this in order to apply for your Certificate of Eligibility unless you have your discharge papers.
How to Apply for a VA Loan
There are several basic steps in the VA home loan application process. The first thing you need to do is get your Certificate of Eligibility. This proves to the lender that you are eligible for a VA loan. Information on how to obtain this Certificate can be found at:https:// www.benefits.va.gov/HOMELOANS/purchaseco_certificate.asp
If you are not sure whether or not you qualify for a COE you can visit the VA's eBenefits website:
www.ebenefits.va.gov/ebenefits-portal
You can also contact the VA Eligibility Center by mail at P.O. Box 100034, Attn: COE (262), Decateur, GA 30331.
Once you have your COE, now you can approach lenders to find out much you can borrow and get your letter of Pre-Approval. This letter can often help in the offer process as it shows the seller that you are able to get a loan to purchase the house. Here is a sample form that you can use to work out ahead of time what you can afford. If you would like a copy of this worksheet please give me a call and I will be happy to send it to you.
There are many different types of mortgage available and you should definitely shop around for the best rates and terms. Here is a link to the Consumer Financial Protection Bureau website that will give you lots of info on mortgages and a mortgage calculator.
https://www.consumerfinance.gov/owning-a-home/loan-options/#loan-term-calculator
So, now you have chosen your lender, you have your letter of Pre-Approval in your hand - IT"S TIME TO GO HOUSE SHOPPING! Please make sure you find yourself a good Real Estate Broker with excellent knowledge of the VA loan process.
You've found your dream home! Now what? With the assistance of your Real Estate Broker you will make a formal offer to purchase the house and once the offer has been accepted and contracts signed you will start the process of submitting your mortgage application. You will be required to submit a significant amount of paperwork as evidence to support your ability to qualify for the mortgage.
VA Document Checklist
* Certificate of Eligibility; Obtain VA Form 26 1880.* Complete Bank Statements from the most recent three months for all accounts
* Most Statements from retirement, 401k, mutual funds, money market, stocks, bonds & inheritances
* If applicable copies of spouses financial accounts and phone numbers
* Latest credit card statements, including minimum payments and account numbers
* Name, address and phone number of your landlord, or 12 months of cancelled rent checks
* If you have no credit card bills copies of your most recent utility bills
* If applicable, copy of complete bankruptcy and discharge papers
* If you co-signed for a mortgage, car, credit card etc., copies of 12 months cancelled checks
* If applicable copies of spouses credit card accounts
* Copy of drivers license
* Copy of Social Security Card
* If applicable, copies of complete divorce, palimony or alimony paperwork
* If applicable, copy of Green Card or Work Permit
If you are refinancing or own rental property you may also need to provide the following:
* Copy of Note and Deed from current loan
* Copy of Property Tax Bill
* Copy of Homeowners Insurance Policy
* Copy of Payment Coupon for current Mortgage
* If Property is Multi Unit, copies of rental agreements.
So, I've already mentioned that you can get a 100% loan from the VA, BUT, that does not mean that you will have no costs. The VA charges a Funding Fee which varies depending on your personal circumstances and ranges from 1.25% up to 3.3%. Your mortgage lender may also charge an Origination Fee of up to 1%. The Origination Fee must include the following charges:
* Settlement fee
* Any additional appraisals and inspections
* Escrow, closing fee
* Document preparation
* Underwriting fee
* Processing Fee
* Application Fee
* Interest rate lock-in
* Attorney fees (for work other than title)
* Assignment fee
* Photocopying
* E-mail or fax
* Photographs
* Postage
* Amortization schedule
* Notary fee
* Commitment fee
* Marketing fee
* Trustee fee
* Truth in lending fee
* Tax service fee
There are however some expenses that are NEVER paid by the VA borrower:
* Termite/pest inspection
* Attorney fees as a benefit to the lender
* Mortgage broker fee
* Prepayment penalties
* HUD/FHA inspection fees to builders
* Real Estate professional's commission
Misconceptions About VA Financing
Some common misconceptions about VA eligibility and entitlement include:* Eligibility for VA financing means guaranteed qualification for a loan, even with bad credit - Not true, every lender has different criteria for credit scores. Check with your lender to find out what their minimum score requirements are.
* A bad credit report doesn't matter because the VA guarantees 100% of the loan even if the borrower defaults on the payments - The VA does not guarantee 100% of the loan and your credit report/score is a vital component of qualification for a mortgage loan
* A preapproval or prequalification isn't needed when the buyer plans to use VA financing - This letter from your lender can be an important negotiating tool during the Offer to Purchase Process.
* VA financing can only be used once - Veterans who had a VA loan in the past may still have remaining entitlement to use for another VA loan. Selling the property and paying off the loan fully restores the entitlement for future use.
WOW, that's a lot of information! The process of finding and buying a house can seem completely daunting, especially to the first time buyer. All the more reason to get yourself experienced help from a licensed Real Estate Broker who will help you through from start to finish. They will offer advice, knowledge and support and will be able to connect you with other professionals in the area such as mortgage lenders, closing attorneys and home inspectors.
I hope that you have found the information in this blog useful, but if you have any questions or need more information please do not hesitate to give me a call or email me. I will be happy to sit down with you and go through the process in detail from beginning to end.
Here at Century 21 Sterling Real Estate we are looking to actively support our military. We offer financial assistance to transitioning military who would like to pursue a career in real estate. We also offer that assistance to trailing spouses where appropriate. Century 21 also offers incentives for veterans. If you would like to receive a copy of the brochure "Heroes Wanted" please call or email me. Come join us and discover innovation to feed your relentless drive.
Valerie McKean, GRI, ABR, MRP, SRES
Owner/Broker & Military Relocation Professional
Century 21 Sterling Combs
Saturday, February 24, 2018
Spring has Sprung in Pinehurst and my thoughts are of Gardening
Make Gardening A
Family Affair
As adults, we often assume
that gardening is designed exclusively for us.
Believe it or not, children also love to garden making this popular past
time a wonderful family-oriented activity.
If you are interested in making gardening a family affair, consider the
following ideas to help make your goal a successful one.
Why Children Love To Garden
Children love to create and
there's no better way to do so than by sharing in the fun of planting a
garden. Because little ones also love
color, they are naturally drawn to the landscape of a garden. In addition to that, they also can enjoy the
pleasure of watching something grow that they had a hand in preparing.
What To Plant
If you want to enjoy
gardening as a family affair, try planting something that the entire family
will enjoy. Everyone loves strawberries;
they are pretty and they taste great on a hot summer day. Planting strawberries is a terrific way to
get your children to join in on the fun of gardening. In addition, watermelon, apples, pears,
oranges and other colorful foods will entice your family into the project. Don't forget to plant pumpkins for
Halloween! Not only will your children
love to watch them grow, but they will also enjoy carving them for decoration.
How Your Child Can Benefit From Gardening
Gardening is a fun way to
enjoy an activity with family, but it also teaches your child
responsibility. If he/she is responsible
for planting something, it will provide a lesson in patience as the seed turns
into a mature plant. As they water the
garden, they will also learn responsibility in that taking care of something is
necessary for its health and survival.
Make Gardening Fun For Everyone
If you want to make any
family activity fun, everyone in the family must have a specific interest in
the project. In other words, just
because you want to plant roses doesn't mean that your child will share in your
enthusiasm. As a family, go out to the
store and choose something specific for each individual to plant. By allowing everyone the freedom of choosing
their own project, they will be more likely to enjoy watching it grow and be
proud of their achievement.
The Importance Of Sharing A Family Activity
One of the greatest things
that a family can do together is to spend quality time enjoying a common
interest. Instead of getting lost in a
television program or a video game, your family can benefit from gardening by
learning one of life's most important lessons - sowing seeds is required to reap
a bountiful harvest.
Landscaping Design Tips
As a homeowner, you can use
a number of landscaping design tips to make your house look just as polished on
the outside as it does on the inside.
Create A Path
One of the first things that
a guest will notice as they walk up to your home is whether or not there is a
defined path. Instead of simply allowing
the lawn to be trampled down and act as a pathway to your front door, consider
installing a stone walk. Not only will
this be more visually appealing, but it will also keep both you and your guests
from walking through the mud on a rainy day.
Make Your Mailbox Marvelous
The way that you maintain your
mailbox says a lot about how you feel about little details. An appealing design might include the
family's last name, the street number or address and a colorful display of
flowers surrounding the base or possibly even a decorative flag or covering.
Add A Touch Of Color
No landscape would be
complete without the addition of a little color in the way of flowers and
plants. Make sure to choose plants that
will thrive in your particular region, making sure to keep in mind their tolerance
to various temperatures and moisture levels.
Before planting, check the soil to make sure that ample sunlight is
available to promote a healthy life for your flowers and plants.
Curb Appeal
Nothing says curb appeal more than an attractive water feature. Whether you choose a do-it-yourself kit,
which is available at most home improvement stores, or you hire a professional
landscaper, a pond or waterfall is sure to be an asset to your landscape. If you really want to be the envy of your
neighbors, consider adding a goldfish pond to your yard and building a
decorative arched bridge for added accent above the feature.
Start A Kitchen Herb Garden
There is nothing like fresh
fruits and vegetables from your own garden to give your health and taste buds a
treat. Starting a kitchen herb garden is
a great and easy way to give your food the fresh taste of summer all year
round, and it is easy and inexpensive, too!
Pick A Spot That Gets Good Light
Most herbs require a good
amount of sunlight to grow, so choosing a spot where they get direct light is
important to making sure your herbs flourish.
If your kitchen doesn't get sufficient light, consider moving your herbs
to a room that gets better light or purchasing an indoor herb garden kit that
has a grow lamp.
Choose A Good Selection Of Herbs
While there are great herb
garden starter kits that offer a useful selection of herbs, if they are not
herbs you use often in cooking they are probably not the best choice. Also be sure you choose herbs that are
compatible with the kind of light available in your space.
Know The Right Conditions For Growth
As mentioned, herbs need a
considerable amount of sunlight, but they also require rich moist soil to grow
to their full potential. Having your
indoor herb garden by the kitchen sink is ideal. Also, making sure the soil gets proper
drainage by planting herbs in pots with draining holes and adding stones to the
bottom can make a big difference.
To Fertilize Or Not
There are a number of
resources on indoor herb gardens that recommend you use fertilizers to give
your herbs the maximum growth potential. However, there are many great natural
choices that will not affect the taste or nutritional value of your herbs, and
are better for the environment.
A kitchen herb garden is a great way to boost the nutritional value
and taste of your food, and will bring some of summer's taste and feel into
your home all year!
How To Care For Your Lawn
If you love your lawn, it's
only natural that you would want to give it the proper care to help give it a
healthy appearance. After all, your
landscape is one of the first things that people will notice when they arrive
at your home. Your lawn can either make
or break your curb appeal.
Grooming
If you have weeds, remove
them with the proper tools or by pulling them out of the ground manually. An important part of grooming your lawn is
mowing it regularly to give it a manicured appearance.
Feed Your Lawn
Yes, even your yard gets
hungry and what it craves more than anything is water. Most experts recommend that one thorough
watering each week is preferable over a light misting every other day. When it comes to feeding your lawn, the best
time of year to fertilize is during the spring.
This is when your lawn begins to grow and its beautiful shade of green
begins to come alive, which is why it's important to make sure that it has all
of the nutrients that it needs to enjoy the warm months ahead.
Treating Bald Or Bare Spots
What happens when your lawn
begins to dry out or shows signs of brown spots? It could mean a number of things, but
treating it properly will help to get your yard sparkling again. One way of doing this is by planting seeds so
that new grass can grow. Before doing
this, make sure to loosen the soil so that the seeds will have a healthy
start. Your other option is to bring in
sod, which is commonly used for larger areas that are in need of a quick
fix. Just as you would loosen the soil
for seeding, it's important to do the same for sod so that it can properly
attach to the surface of the lawn.
Pest Control
Your lawn is a reflection of
your home, but it's also a potential haven for pests. It's important to pay close attention to the
plants and/or flowers that you choose for your landscape as certain types can
deter pests, while others may actually attract them. If in doubt, ask a local gardening expert or
a representative at your local home improvement store for more information on
this topic. If you develop a pest
problem, there are products designed to protect your landscape and permanently
rid the pests of your space.
Next month: Outdoor patios, lighting, decks and grilling
Valerie
McKean GRI, ABR
Owner/Broker
Century 21 Sterling Real Estate
Century 21 Sterling Real Estate
REALTOR®
Tel:
910-430-9494
February 24th 2018
Sunday, October 29, 2017
What is a Reverse Mortgage and is it Right for You?
A Reverse Mortgage: Is It Right For You?
A reverse mortgage is a
financial option available to seniors which allows them to free up some of the
accumulated equity in their home. This
may be an appealing option for obtaining some extra income in your retirement
to use for a variety of reasons; however, there are some important
considerations to weigh before borrowing against your greatest investment. Here are some facts about reverse mortgages,
and some tips for making the right financial choice.
What Is A Reverse Mortgage?
Sometimes called a lifetime
mortgage, a reverse mortgage or Home Equity Conversion Mortgage, allows you to
borrow against the equity in your home, which can be paid out either in one
lump sum, in several payments over time, as a line of credit or a combination
of monthly payments and a line of credit.
This amount does not have to be paid back to the lender during your
lifetime provided you stay as a resident in your home and it remains your
property. That percentage of the value
of your home which you have taken out now becomes the property of the lender,
and will be returned to them after the sale of the home. Your heirs still inherit the property upon
your passing, and they have up to one year from that time to either refinance
the property, or sell it and keep the remainder of the proceeds for themselves. At no time will your heirs be liable for any
shortfall should there not be sufficient proceeds from the sale to cover the
outstanding debt.
Do I Qualify For A Reverse Mortgage?
Depending on where you live,
the qualifications for a reverse mortgage may differ. In general you must be 62 years or older,
however, your spouse may be younger. There must be no outstanding mortgages on
the property upon which you are borrowing, and you must have sought the advice
of a qualified financial advisor in order to prove that you fully understand
the process. You can use the monies from
a reverse mortgage for whatever you want, as there are no restrictions.
How Much Can I Get From A Reverse Mortgage?
Again, depending on where
you live, the amount of equity you can receive from your home with a reverse
mortgage will differ. In the U.S. there
is a maximum limit of $636,150, no matter what the value of your home, but for
most homeowners the amount will be considerably less. The actual amount you will get depends on a
variety of factors such as the current appraised value of your property, the interest rates at
that time, your age, and whether you want a lump sum payment, a line of credit or
monthly payments for the rest of your life.
For more information on borrowing use the following link:
To calculate how much you
could borrow use the following link:
Buy your home with minimal qualifying and No Monthly payments
You can use a Reverse
mortgage (a.k.a. HECM or Home Equity Conversion Mortgage to actually purchase a
home. You are still required to be over
62 and get counseling prior to writing the contract and you must pay all
closing costs yourself. There are no
debt-to-income ratios and no minimum credit score. You will be required to make a significant
down payment, but the older you are the lower the payment. You can make payments on the mortgage at any
time (even though you are not required to do so) with no prepayment
penalty. As an example, say you have
$150,000 to buy your retirement home.
With the HECM you would use that as a down payment to purchase a
$300,000 home. If one partner dies, the
spouse is entitled to stay in the home for as long as needed. There is no requirement to sell until both
spouses have moved out for 12 months, allowing the estate plenty of time to
either sell or make new finance arrangements.
As the HECM is a
non-recourse loan, the estate is never liable for any shortfall in the repayment
of the loan from the proceeds of the sale of the home. If the home sells for more than the
outstanding loan, all excess proceeds will go to the estate, not to the lender.
Reverse mortgages can be a great addition to your retirement income,
but being sure you know all the facts before going ahead will ensure peace of
mind for both you and your family in the long term.
For more information
and answers to your questions you can go to the following government website:
The National
Reverse Mortgage Association also has a website which can be found at:
The Reverse
Mortgage: A discussion guide from the Consumer Finance Bureau can be found at:
For help and
advice prior to getting a Reverse Mortgage talk to a HUD approved reverse
mortgage counselor. Visit http://tinyurl.com/6q2ageg or call HUD’s
housing counselor referral line at (800)569-4287.
Please feel
free to call me or email if you have any questions and I will put you in touch with a mortgage professional specializing in this type of loan.
Valerie
McKean GRI, ABR
Owner/Broker
Century 21 Sterling Real Estate
Century 21 Sterling Real Estate
REALTOR®
Tel:
910-430-9494
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