a glossary of terms for va loans
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Va Loans for Vets provides and assists all veterans and active duty military with ALL of their VA Home Loan Financing Needs. Be a proud homeowner today. For more details call us at 480-351-5904 or visit our site http://www.valoansforvets.com/\n - PowerPoint PPT PresentationTRANSCRIPT
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A Glossary of Terms for VA Loans
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Appraisal – Appraisals are professional evaluations of the fair market value of the property being purchased.
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ARM – Adjustable Rate Mortgage – ARMs are mortgages that have an initial low rate of the interest that is fixed for the first 2 or 3 years of the loan, which can then fluctuate with current market rates after that period.
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Assumable Mortgage – An assumable mortgage can be taken over by a new buyer instead of acquiring a new mortgage.
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The seller will still be liable for payment of the mortgage if the new buyer defaults.
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Balloon Payment – With a balloon mortgage, the buyer makes payments for a specific amount of time, generally five to ten years, after which the mortgage must be paid in full.
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This type of loan is generally used by people who do not intend to stay in the house for a long period of time or those who intend to re-finance the mortgage before the payoff amount comes due.
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Certificate of Eligibility – A Certificate of Eligibility is a document that proves your past or current military service. It is required for a home loan through the VA Guaranteed Loan Program, which offers home loans for veterans.
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Employment Verification – Employment verification proves your place of employment and the amount of salary you receive that will enable you to make mortgage payments each month.
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Escrow – Escrow is an account that holds money for the distribution of various costs, such as a lender’s escrow account that holds payments for taxes and interest.
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An escrow account can also be used to hold earnest money during the home purchasing process.
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IRRRL – Interest Rate Reduction Refinancing Loan – The IRRL is a streamlined process for refinancing mortgages through the VA Guarantee Loan Program.
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Mortgage Insurance – Mortgage insurance provides money to the lender in case you default on your home mortgage.
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It is generally required if you put less than 20 percent down payment on your home.
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PITI – Principal, Interest, Taxes and Insurance
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The PITI is the total amount of your monthly mortgage payment that includes the principal on the loan, the monthly interest, a portion of your real estate taxes for the year and a monthly portion of your home insurance payment for the year.
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Points – A “point” is 1 percent of the mortgage loan amount that is often paid up front to negotiate a lower interest rate on the loan.
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Paying the amount up front can often save thousands of dollars over the term of the mortgage.
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Prepayment Penalty – This is a fee paid to the lender if you pay off the mortgage before the term of the loan has ended.
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Many lenders will offer “no prepayment penalty” loans. The VA home loan program requires no prepayment penalty loans.
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Pre-qualification – Pre-qualification allows homebuyers to provide their credit and employment information to secure a loan in advance of finding a home to purchase.
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Settlement – Settlement is a term often used to mean the closing of the loan.
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Title Insurance – Title insurance is a type of insurance that provides protection for the owner and the lender against disputes concerning ownership of the property.
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Variable Interest Rate – Variable interest rates change with changes in the financial market.
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VA Eligibility - The VA loan program requires applicants to provide proof of their military service.
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This information is requested on a VA form 26-1880, which is then submitted to Veterans Affair Administration and is subsequently provided to the lender.
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Walk-through – The walk-through is the final inspection of the home by the buyer to ensure that it is in the proper condition under which they agreed to purchase the property.
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Our VA Loan Specialist helps veterans obtain the loans they are entitled to.
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He served in the United States Marine Corps, and now devotes himself to the Veteran home buyer in the Phoenix area, fulfilling a passion of his while at the same time helping others achieve home ownership.
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Be a proud homeowner today.
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For more details call 480-351-5904 or visit the site
www.valoansforvets.com
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VA Loans for Vets7702 E. Doubletree Ranch Road, Suite 220Scottsdale, AZ 85258Phone: (480) 351-5904Email: [email protected]