A Glossary of Terms For VA Loans - PowerPoint PPT Presentation

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A Glossary of Terms For VA Loans

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Va Loans for Vets provides and assists all veterans and active duty military with ALL of their VA Home Loan Financing Needs. Be a proud homeowner today. For more details call us at 480-351-5904 or visit our site – PowerPoint PPT presentation

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Title: A Glossary of Terms For VA Loans


1
A Glossary of Terms for VA Loans
2
Appraisal Appraisals are professional
evaluations of the fair market value of the
property being purchased.
3
ARM Adjustable Rate Mortgage ARMs are
mortgages that have an initial low rate of the
interest that is fixed for the first 2 or 3 years
of the loan, which can then fluctuate with
current market rates after that period.
4
Assumable Mortgage An assumable mortgage can be
taken over by a new buyer instead of acquiring a
new mortgage.
5
The seller will still be liable for payment of
the mortgage if the new buyer defaults.
6
Balloon Payment With a balloon mortgage, the
buyer makes payments for a specific amount of
time, generally five to ten years, after which
the mortgage must be paid in full.
7
This type of loan is generally used by people who
do not intend to stay in the house for a long
period of time or those who intend to re-finance
the mortgage before the payoff amount comes due.
8
Certificate of Eligibility A Certificate of
Eligibility is a document that proves your past
or current military service. It is required for a
home loan through the VA Guaranteed Loan Program,
which offers home loans for veterans.
9
Employment Verification Employment verification
proves your place of employment and the amount of
salary you receive that will enable you to make
mortgage payments each month.
10
Escrow Escrow is an account that holds money
for the distribution of various costs, such as a
lenders escrow account that holds payments for
taxes and interest.
11
An escrow account can also be used to hold
earnest money during the home purchasing process.
12
IRRRL Interest Rate Reduction Refinancing Loan
The IRRL is a streamlined process for
refinancing mortgages through the VA Guarantee
Loan Program.
13
Mortgage Insurance Mortgage insurance provides
money to the lender in case you default on your
home mortgage.
14
It is generally required if you put less than 20
percent down payment on your home.
15
PITI Principal, Interest, Taxes and Insurance
16
The PITI is the total amount of your monthly
mortgage payment that includes the principal on
the loan, the monthly interest, a portion of your
real estate taxes for the year and a monthly
portion of your home insurance payment for the
year.
17
Points A point is 1 percent of the mortgage
loan amount that is often paid up front to
negotiate a lower interest rate on the loan.
18
Paying the amount up front can often save
thousands of dollars over the term of the
mortgage.
19
Prepayment Penalty This is a fee paid to the
lender if you pay off the mortgage before the
term of the loan has ended.
20
Many lenders will offer no prepayment penalty
loans. The VA home loan program requires no
prepayment penalty loans.
21
Pre-qualification Pre-qualification allows
homebuyers to provide their credit and employment
information to secure a loan in advance of
finding a home to purchase.
22
Settlement Settlement is a term often used to
mean the closing of the loan.
23
Title Insurance Title insurance is a type of
insurance that provides protection for the owner
and the lender against disputes concerning
ownership of the property.
24
Variable Interest Rate Variable interest rates
change with changes in the financial market.
25
VA Eligibility - The VA loan program requires
applicants to provide proof of their military
service.
26
This information is requested on a VA form
26-1880, which is then submitted to Veterans
Affair Administration and is subsequently
provided to the lender.
27
Walk-through The walk-through is the final
inspection of the home by the buyer to ensure
that it is in the proper condition under which
they agreed to purchase the property.
28
Our VA Loan Specialist helps veterans obtain the
loans they are entitled to.
29
He served in the United States Marine Corps, and
now devotes himself to the Veteran home buyer in
the Phoenix area, fulfilling a passion of his
while at the same time helping others achieve
home ownership.
30
Be a proud homeowner today.
31
For more details call 480-351-5904 or visit the
site www.valoansforvets.com
32
VA Loans for Vets 7702 E. Doubletree Ranch Road,
Suite 220 Scottsdale, AZ 85258 Phone (480)
351-5904 Email jimmyv_at_fcbmtg.com
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