VA loans offer some of the best rates on the market for home purchasing. This benefit also extends to VA refinance loans, which allow veterans to take advantage of their home’s equity. This is what you need to know about them to get started.
Why You Would Want To Refinance Your VA Loan
Veterans will look to refinance their loans for different reasons. One reason might be to help cut down their monthly payments. Restructuring the loan will allow you to look into lower interest rate fees over a longer period of time. Which will help you out in the short term. You may also want to use a refinance loan to upgrade your home before selling, or just to make it nicer to live in.
Breaking Down The Process Of Refinancing
The process of using a refinance loan service is to find a lender. It will be best for you to choose a VA lender as they will have more experience with these types of loans compared to other traditional lenders or banks. These loans are backed by the Department of Veteran Affairs, meaning that they can afford to be more lenient with credit score requirements, as the government partially pay the fees.
Once you have your lender chosen after a consultation, you will need to prove that you are an actual veteran. You can do this by producing a certificate of eligibility. You can source this from online portals, or your lender can get it for you via filling out the right forms once you’ve supplied them with information.
It’s important for this reason that you use a veteran specific lender. One such lender is Hero Loan, who offer a range of different veterans refinance options. This will allow you to get the right refinance structure for you, and know that your home and finances are in experienced hands.
Once they have the certificate and are happy to proceed, you will need to then move on to the other stages. This includes submitting supporting documents, such as bank statements and paystubs. You will have to then decide which refinance loan you are going for, if you haven’t already.
Different Types Of VA Refinance Loans
There are a few different types of refinance loans available to veterans. For example, you have a cash-out refinance. This allows you to dip into your home’s equity, to exchange it for cash that will be used for your home or debts. You could use the money to improve your home to increase its value or livability, as well as pay off debts affecting your personal life.
There is also a streamline refinance loan. This allows veterans to take more lower interest rated refinance loans. Cash-out refinance loans will usually have higher interest rates than a streamline option. This type of loan also requires little paperwork, just some supporting documents. You will also not need to go through an appraisal in most cases.