Four Ways to Guarantee Low VA Refinance Rates

What determines VA refinance rates? A number of factors affect VA refinance rates, which include:

Credit Score. In order to qualify for VA refinance, you must certify that you are a “qualified individual.” To do this, you must complete and submit the Application for Federal Refinance Lender (OFSL). Your application must list your Social Security Number as well as provide documentation of your spouse or non-spouse only income and ownership of property. The SSA will review your application to determine if your credit score is sufficient to qualify you for the refinance.

Loan Eligibility. Once your application for Federal Refinance Lender is approved, you will be placed in one of three loan eligibility groups. To begin, you must complete and submit the Qualifying Offer. If your Offer is approved, you will then complete the Application for Federal Housing Agency (FHA) Loan Eligibility. The FHA requires three things from you before placing your name on the Approval List. These items are as follows:

Provide substantiation of income. Your lender will check your current credit score and credit history. Your lender will also consider all recent expenses, such as car payments, utility bills, and home loan expenses, when determining if you meet the eligibility requirements for a refinance. In some cases, lenders may also want to see wage slips or pay stubs from past years.

Shop Around. Before beginning your search for a new lender, you must shop around and compare interest rates. You can do this easily by visiting a number of sites that will return various interest rates from several lenders. This allows you to compare the different deals and select the best and most competitive rates. In addition, be sure to visit a number of websites so that you can see the terms of repayment for each of your refinance options. This can help you make an informed decision.

Look at VA Loans. One of the advantages of getting a VA refinance loan is that your interest rates are guaranteed fixed for the life of the loan. Because the market conditions are so unfavorable for home loans right now, many veterans are being forced to look for better refinance options. A VA refinance will offer lower interest rates than the market currently offers.

Consider Personalized Loan Refinancing. When you apply for a VA refinance, your lender will allow you to choose between two refinancing options. You may choose to take a one-time fixed-rate loan or an adjustable-rate loan. With a fixed-rate loan, you will receive lower interest rates for your loan amount over the course of your loan. However, if you choose to use an adjustable-rate loan, you will receive the same lower interest rates, as long as your loan amount remains low enough after the initial mortgage refinance. By taking advantage of these personal finance options, you will give yourself the greatest chance to receive the best loan refinance results.

Your final tip for finding the lowest VA refinance loan rates is to work on improving your credit score as much as possible. Low credit score loans are more expensive than higher credit scores. If you have the opportunity to work on raising your credit score, then you should do so. This will help you get the best VA refinance rates possible, as well as lower overall interest rates on other types of loans.

Your third tip is to know exactly what your mortgage insurance policy says about VA refinance eligibility. You can generally learn this information from your mortgage agent or from your lender. There will be a section in your loan refinance documents that discusses whether or not you qualify for VA funding. If you don’t qualify, then don’t worry; there are still a lot of great VA refinance packages available to choose from. Once you learn what your mortgage insurance says, you can use this knowledge to shop for a better deal.

Your fourth tip involves timing. Most people tend to think that it’s more difficult to obtain VA-approved mortgage rates during good times. If you know when your best chances of getting a VA-approved refinance loan are, you will be more successful. For example, if you know that your interest rate is set to increase after next year, you should start shopping for a new lender as soon as possible. Then, when the rates begin to drop, you’ll be ready to get a VA refinance loan and start enjoying low mortgage rates again. Just make sure that you’re not shopping right before a major change in law, such as the upcoming tax season.

Your last tip involves shopping around. As mentioned above, there are dozens of different lenders who are willing to offer competitive rates for veteran and surviving spouses. These lenders have been approved by the government to guarantee their loans. If you want to ensure that you’re getting the best deal, it’s important to shop around between the many different lenders.