What Are VA Home Loans?

http://bucket.wistia.com/medias/ak84icnc4b?embedType=async&videoFoam=true&videoWidth=640 What Are VA Loans? As the video says, the name is misleading - they’re not loans FROM the VA. The VA - short for “US Department of Veterans Affairs” - is the Federal military veteran benefit system. The VA administers benefits and services for Servicemembers, Veterans their dependents and survivors. Programs related to home loans are one of their key services. The VA is not a bank; they do not provide home loans themselves. But they do guarantee a portion of home loans provided to ...
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When Do I Get My Loan Closing Disclosure?

http://bucket.wistia.com/medias/2hdw2fv1zi?embedType=async&videoFoam=true&videoWidth=640 If an eligible loan proceeds from Estimate to closing, creditors must provide a Closing Disclosure form documenting the actual transaction terms and costs THREE business days before consummation. It must be in writing, whether paper or digital, and disclose ONLY the information specified by the CFPB. If terms or costs change prior to consummation the creditor must provide a corrected disclosure containing the updated terms. In some cases, this may require an additional 3-business-day waiting ...
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What Is The Debt-To-Income Ratio (DTI)?

http://bucket.wistia.com/medias/wnye5x4yva?embedType=async&videoFoam=true&videoWidth=640 Measuring your existing debts against your existing income is one part of a lender’s required assessment of your ability to repay a loan. Like the video says:  debts are existing financial commitments; a car payment is a debt a grocery bill is not. To calculate your debt-to-income ratio add up your monthly debt payments and divide them by your GROSS monthly income. (Gross income is generally the amount of money you earn BEFORE taxes and other deductions.) The Federally-established d...
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What Does Ability To Repay Mean?

http://bucket.wistia.com/medias/wmc87delfy?embedType=async&videoFoam=true&videoWidth=640 What are the “Ability to repay” rules about? In a nutshell, as this video shows, new laws require lenders to make a good-faith assessment of a borrower’s capacity to pay back their loan over time. It’s a longer-term view that goes beyond immediate income, debt and credit rating. These new Federal laws- supervised by the CFPB - require lenders to ask more questions - about income, assets, employment, credit history, and monthly expenses - as they relate to the proposed loan. For exa...
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What Is A Qualified Mortgage?

http://bucket.wistia.com/medias/egxxmwjb58?embedType=async&videoFoam=true&videoWidth=640 As this video explains,  Federal laws put into effect in 2014 and  supervised by the Consumer Financial Protection Bureau define lending practices and loan terms for a new category called “Qualified Mortgages.” They provide stable loan features for consumers and improve legal protection for lenders who follow the guidelines. These guidelines require lenders to assess each borrower’s ability to repay their mortgage loan. As of 2014, guidelines require that a borrower’s monthly DEBT - i...
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What Is A Rate Lock?

http://bucket.wistia.com/medias/rggmu4371s?embedType=async&videoFoam=true&videoWidth=640 Mortgage rates change constantly through an unpredictable combination of government policies and economic conditions. This video explains the common term 'rate lock.' A “Rate Lock” is a guarantee that a lender will honor a specific combination of interest rates and points for a given period of time. A lock protects a buyer from rate increases but commits them to a higher rate if mortgage rates fall below the locked rate. As of 2014, rate locks aren’t usually an option until a purchas...
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What Is A Certificate of Eligibility, or COE?

http://bucket.wistia.com/medias/9a707ti530?embedType=async&videoFoam=true&videoWidth=640 What Is A Certificate of Eligibility, or COE? The COE is the key document that verifies to lenders that someone is eligible for a VA-backed loan. Servicemembers, Veterans and National Guard and Reserve members may apply online or through their lender; most lenders have access to the system and can verify eligibility IF the VA has records on file. The VA also maintains a hotline for assistance. Surviving Spouses can use VA Form 26-1817 to request determination of their eligibility for...
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What Are The Major Types Of VA Loans?

http://bucket.wistia.com/medias/ftyg9tfdng?embedType=async&videoFoam=true&videoWidth=640 What Are The Major Types Of VA Loans? Major Veterans Affairs loan programs described in this video include: 1) Purchase Loans. These help eligible parties buy a home at competitive interest rates with little to no down payment and little or no private mortgage insurance. 2) Cash Out Refinance Loans which enable taking cash out of home equity to pay off debt, fund school or make home improvements. 3) Interest Rate Reduction Refinance Loans also called Streamline Refinance Loans can h...
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Understanding Your Loan: Additional Information Can Be Important

http://bucket.wistia.com/medias/zogoegpv3h?embedType=async&videoFoam=true&videoWidth=640 Page 4 of your Closing Disclosure is important. It is NOT just standardized form information that is identical for every loan. Review these terms: Assumption: can this loan be transferred to another person if you sell or transfer the property? Demand: can the lender require early repayment of the loan? Late Payments: what penalty, after what period, applies? Negative Amortization: does this loan schedule or allow payments that do NOT fully cover the interest due, resulting in increa...
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Understanding Your Loan: Closing Disclosure Page 1

http://bucket.wistia.com/medias/zsfyb0hfxy?embedType=async&videoFoam=true&videoWidth=640 The first page of your Closing Disclosure documents: The Loan Amount - the total you will actually borrow The Interest Rate - which does NOT include the fees factored into the APR on Page 5 If this loan has a penalty for pre-payment or includes a balloon payment Page 1 will summarize the terms. Projected Payments will show the chief cost components - Principal & Interest, Mortgage Insurance and estimates of your Escrow Payments over the life of the loan. You may see different col...
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