Do you ever wish you could have a little extra cash? Don’t we all! Maybe there’s a vacation you would like to take or some things you need to buy for your home. Perhaps you have some high-interest debt that you need to get rid of. If so, you’re not alone!

All of us have been there at one time or another. Fortunately, there are more options available these days than ever before. And if you are a veteran, you are in an even better position. You may find that VA loans give you the cash you need without forcing you to hand over your first-born child.

What is the IRRRL program?

IRRRL stands for Interest Rate Reduction Refinancing Loan. It’s a special kind of loan available just to veterans.The best part is that the IRRRL program allows you to refinance your existing loans at a lower interest rate.

Think of it as Uncle Sam’s way of thanking you for your service. For those who have spent time overseas, this program makes it much easier to start a home back in the U.S.

Reasons to Seek a Refi

A major advantage of these loans is that you may be able to get one with a “no money out of pocket” condition. How exactly is that possible? This is usually done by taking the costs associated with a new loan and rolling them into the total amount of the loan. In other cases, the lender may choose to absorb the costs if the interest rate is high enough to cover them.

The result is extra savings that you could use to improve your overall financial situation. The number one reason to take advantage of refinancing is to tackle credit card debts. Remember, those pieces of plastic carry interest rates well into the double digits, which is typically much higher than your refinanced mortgage rate.

The number one reason to take advantage of refinancing is to tackle credit card debts.

Another great reason to seek a refi is to help save for retirement. While veterans do get some pretty good retirement benefits, it never hurts to save a little extra. If you’re behind on your savings, try putting the money you saved from refinancing into a 401(k) plan. This will make your savings work double time.

Consider Refinancing

In short, the IRRRL program may mean serious advantages for vets. Whether you are looking to take a well-deserved vacation, pay off some high-interest debt, or just have a little extra cash on hand, a VA loan might be just what you need. If you haven’t already, look into your options today. You’ll be glad you did!

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No Down Payment

With a VA loan, there is usually no down payment requirement on a new purchase loan. This can make it easier for veterans to qualify for a mortgage since they don’t need to worry about providing a hefty payment of about 10-20% of the purchase price at the time of the closing.

Lower Interest Rates

The VA doesn’t directly provide the money to you. In fact, VA loans are offered through private lenders that are guaranteed by the U.S. Department of Veterans Affairs. This guarantee allows the lender to offer lower interest rates to members of the U.S. Armed Forces and their family members.

Credit Flexibility

Veterans may be eligible for mortgage assistance two years after bankruptcy or foreclosure. Most lenders require a minimum credit score of 620 for VA home loans. Since this is lower than many conventional lenders, it’s easier for veterans to qualify.

No Mortgage Insurance Requirement

With conventional and FHA loans, lenders typically require mortgage insurance if you pay less than 20% down. This is not the case with VA home loans, as there is no mortgage insurance requirement.

The post What Are the Benefits of a VA loan? appeared first on Your Mortgage Assistant.

Omitting Important Information

When applying for VA loans, there are a lot of questions that you’ll have to answer. Don’t skip any of them or leave out important details in your responses. If your application is missing pertinent information, the lender will have to request clarification from you before proceeding.

Not Asking Questions

Although purchasing a home might feel intimidating, it is your loan officer’s job to help with the application process. If the lender makes requests that you don’t fully understand, do not hesitate to ask your loan officer or other representatives for clarification. Once you have received clear answers, you’ll be prepared to follow through by providing the exact information that is needed.

Starting a New Job

It’s priceless to have a job that you love, but if an appealing job offer comes along in the middle of the homebuying process, think twice before taking it. Switching employers after submitting your loan application could add some unpleasant twists to the approval process. Of course, there may be a job offer that you just can’t pass up. In that case, ask your loan officer how you should handle the change in employment.

Going Overboard With Spending

While you may have big dreams of furnishing your new home, you shouldn’t go charging a new living room set to your credit card just yet. Making big purchases could affect your credit score, which could, in turn, negatively affect your application for veteran home financing. As tempting as it may be to buy new things, you should hold off on spending, and not open any new credit cards either.

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