Discount points are an upfront fee paid on a loan to buy down the interest rate. One discount point on a loan will be equal to one percent of the loan amount. Discount points are used to prepay interest in advance to lower the monthly payment by lowering the interest rate over the term of the loan. Lowering the interest rate on a home
The terms get incorrectly used interchangeably but are actually different. Closing costs and prepaids are expenses necessary to close on your home. Cash to Close is the total net amount you pay at the actual loan signing and is the net sum total of the closing costs, prepaid items, discount points, down payment, and after the application of any credits. The earnest money deposit paid when an offer was made is deducted
On November 25th of 2022, a new VA circular pertaining to private roads and shared driveways
was released. Now, effective immediately, the VA is no longer requiring that a veteran obtain a private road maintenance agreement
to meet the minimum property requirements of the VA
home loan. The VA will be requiring that a public easement be recorded, which is usually already included
in the preliminary title
Starting July 1st all Medical collections will be reviewed and MAY be ignored on credit reports. Your payment history is 35% of your credit score. In the past this debt could affect your credit score for up to 7 years. Eliminating medical collections on credit scores will significantly increase credit scores for many people. This means your CREDIT SCORE goes up! And it also means the buying power
People think that sellers have some sort of a bias against VA offers. Think about this situation: There are five offers for a property and the best offer is the offer with a VA loan. The seller or agent might compare that to a conventional loan offer where the buyer is putting down 30%. They immediately know if they can make up that gap if an appraisal comes in low, so they choose the conventional
This can’t be answered without looking at many more details, such as who is paying title insurance, if it’s including escrows, and if it’s exempt from a funding fee. It’s too difficult to provide everything that’s needed to be able to answer the question in a public forum since personal information will need to be addressed, such as
On July 22, 2022, Circular 26-22-13 was introduced. The title of the new circular is Procedures for Alternative Valuation Methods, but we will refer to it as an Appraisal Waterfall.
As of right now, the VA is giving certain allowances on appraisal and inspection processes for borrowers who meet certain qualifications. The Veteran must be making a down payment of at least 20 percent of the purchase price.
Most of the problems that occur when using VA loans usually stem from misinformation. Some agents simply don’t have much experience with VA Loans and are unsure of the process and all the benefits it can provide. For example, many agents think it’s not worth pursuing since they believe there are always extensive repairs to be done after the appraisal is completed.
Instead of just avoiding using a VA loan,
Understanding the VA Loan Estimate
The loan estimate can be a daunting document. To better understand it, the document can be broken down into three pages.
Page 1 contains the general parameters of the loan:
509 W FM120 #848
Pottsboro, TX 75076
509 W FM120 #848
Pottsboro, TX 75076
(903) 231-3588
