Get a Head Start with Your VA Application
When you’re in the process of looking for a home to buy and you plan on using your VA home loan benefit to finance the purchase, one of the first things your agent will ask you is whether or not you’ve applied for your VA loan. You probably already have at this stage but if not it’s next on your list. At minimum you want to bolster your offer with a preapproval letter from a lender but you also want to take care of any concerns about qualifying. Get the paperwork out of the way and enjoy shopping for homes.
But if you’ve already done that a few years ago and your VA loan is doing just fine, thank you it’s also possible that you have a refinance possibility. It’s no secret that rates are low compared to just a few short years and if you haven’t refinance your 5.00 percent loan it’s probably time to take a serious look at it. The VA streamline refinance is a low cost, reduced documentation program that allows you to refinance quicker and with lower fees. But whatever rates do in the meantime, they mean nothing until you have a loan on file with a lender just waiting for you to call and lock in your rate.
If you wait for current market rates to hit your ideal target before applying, know that it might take up to 10 days or longer before the VA lender will accept your lock request. VA lenders don’t lock in a loan rate without an application on file and some VA lenders even require your loan to be in an “approved” status. The best way to play the VA streamline rate game is to have your completed loan on file, updated and all you need to do is lock in the rate with a phone call and order your closing papers. Be in the best position available to take advantage of rate—have your loan fully approved and waiting.