VA Refinance Process
PROCESS AND WHAT TO EXPECT
If you already have a VA home loan, you can potentially obtain a lower interest rate or receive cash out with the help of VA home loan refinancing opportunities. The process for each type of VA refinancing option is extremely simple and Uniform Services Veterans Mortgage will help you along every step of the way.
VETERANS STREAMLINE REFINANCE
A VA streamline refinance is also referred to as an interest rate reduction refinance loan or an IRRRL. It is also commonly referred to as a VA streamline refinance loan. If you already have a VA loan, you may be eligible for an IRRRL, which often provides lower interest rates, lower monthly payments, and substantial long-term savings.
Because the VA streamline option is available only to those who already have been approved for a VA mortgage previously, there is little paperwork involved, and most borrowers do not even need to obtain a home appraisal. We here at USVM can process your IRRRL application and complete your VA refinance typically under two weeks.
The first step is doing a quick pre-qualification call with a licensed loan officer. Secondly you send back in some identifying information such as driver's license, proof of social security number, home owners insurance, current note and in some states a property survey. Third, the processing department sends you initial disclosures which are required to be signed, dated and returned back to get the loan into underwriting. Fourth, wait a little bit of time, workout some loan conditions and then go to closing where you sign the final paperwork to get the loan completed. Fifth, enjoy the new loan and the benefits it offers you!
VETERANS CASH-OUT REFINANCE
Unlike the VA Streamline Refinance option, with a cash-out VA refinance, borrowers can refinance any type of loan, and they have the option of receiving cash. Many homeowners use cash-out VA refinancing to pay off debts, renovate, or to cover emergency expenses. It is a great method to have a single fixed payment at a low interest rate to payoff higher interest rate debt such as credit cards, auto loans, etc. Eligible borrowers often choose this option over conventional refinancing possibilities because VA cash-out refinancing typically leads to the lowest possible interest rates.
If you do not already have a VA home loan, you will need to meet the simple service requirements necessary to be eligible for a VA mortgage. Those who have already received a VA loan will often enjoy an even faster approval process. Like with a VA IRRRL, the closing costs (if any) can be incorporated into the entire loan amount, reducing your out of pocket costs.
The refinance process is similar to the VA IRRRL refinance process, just with a bit more details and documentation. The first step in a VA cashout refinance loan is discussing the opportunity with a licensed loan officer. Secondly, if you have equity in the property, have income sources and qualify for VA home loan eligibility then you send in certain items such as your driver's license, proof of social security number, income documentation, current note and home owners insurance. Third, the processing department sends you initial disclosures which outline the terms of the loan based upon your credit worthiness, approximate property value and your specific requests. These initial disclosures need to be signed, dated and returned to get the refinance into underwriting. Fourth, wait a little bit of time, workout some conditions along with an appraisal, finalize how much equity you would like to use from the VA cashout refinance and then go to closing to sign the final paperwork. Fifth, enjoy the benefits of the VA cashout refinance loan.
Interested In Discussing Options In Depth?
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We understand that this is a lot of information to process and go through. If you would like personal help on the reasons, options, process of a VA refinance and how to get started then USVM is glad to be of service. Contact us at 888-997-8786 to learn more about which options will work best for you. We would be honored to serve you!