Before You Buy When You Buy Refinance


What is the difference between interest rate & APR?

The interest rate refers to the annual cost of a loan to a borrower and is expressed as a percentage. The interest rate does not include fees charged for the loan. The APR is the annual cost of a loan to a borrower — including fees. Like an interest rate, the APR is expressed as a percentage.


What documents are needed to apply for a mortgage?

Refinancing Guide from Bank of England Mortgage Huntsville To help you get started, here are some of the most common documents you will give to your lender. Having these ready could help your mortgage application go as quickly and smoothly as possible.


How can I get pre-qualified?

Use our online application to get started with your mortgage pre-qualification. We’ll get some preliminary information from you, review it and determine whether you might qualify for a loan. Once you get your mortgage pre-qualification, you’ll know how much you could borrow and can look for a new home with confidence. Sellers will also feel more comfortable knowing that they have a serious buyer.


Should I get a fixed rate or an adjustable rate?

Refinancing Guide from Bank of England Mortgage Huntsville On a fixed-rate loan, the interest rate doesn’t change over the life of the loan. An adjustable-rate mortgage (ARM) has an interest rate that is fixed for a set number of years and then afterwards will go up or down based on a market index such as the LIBOR. Consider factors such as the length of time you plan to stay in your home. If you plan to stay in your home for a long period of time, a fixed-rate may be better for you. Otherwise, an adjustable-rate might be better if you plan to sell your home before the rate becomes variable, since initial ARM rates are typically lower than fixed-rate mortgages.


Can I become a homebuyer even if I have I've had bad credit, and don't have much for a down-payment?

The short answer is yes, you can become a homebuyer with stains on your credit history and if you can’t put down a sizable down payment. However, you’re going to have to find a program that supports your unique situation. For instance, you may be a good candidate for one of the federal mortgage programs. Start by contacting one of the HUD-funded housing counseling agencies that can help you sort through your options. Also, contact your local government to see if there are any local homebuying programs that might work for you.


Why get a VA loan over other loan options?

VA loans are easily the best option for Veterans. You may qualify to purchase a home with no down payment and no monthly private mortgage insurance (PMI) premiums to pay. All you need is the minimum credit score of 640.


What if I've used a VA Home Loan Before?

You can have previously-used entitlement restored one time only in order to purchase another home with a VA loan if the borrower has paid off the prior loan but still owns the property and wants to use his entitlement to purchase a second home.


What service is NOT eligible for a VA Home Loan?

You are not eligible for VA financing solely based upon Active Duty for Training in the Reserves or National Guard.

Guard and Reservists are eligible if they were “activated” under the authority of title 10 U.S. Code as was the case for the Iraq/Afghanistan.


Do all local lenders offer VA Loans?

Not necessarily. Semper Home Loans is a VA-approved lending institution that can handle your home loan. We can help you review your credit history and determine how much of a loan you can qualify for.


What is the maximum VA loan?

Although there is no maximum VA loan (limited only by the reasonable value or the purchase price), lenders generally limit the maximum VA loan to $417,000.


If I was discharged years ago and want to qualify for a VA loan, what forms or other documents will I need?

Everyone is required to obtain a Certificate of Eligibility. If you do not have this Certificate, you will need to apply using VA Form 26-1880 and this will require a copy of DD-214 (Certificate of Release or Discharge from Active Duty) showing character of service. Along with the Certificate of Eligibility, loan applicants will need to document their credit, savings and employment information.


Does a veteran's home loan entitlement expire?

No. Home loan entitlement is generally good until used if a person is on active duty. Once discharged or released from active duty before using an entitlement, a new determination of their eligibility must be made based on the length of service and the type of discharge received.


Can I build a home with a VA Home Loan?

Yes. But there are several clauses that may make this difficult to accomplish. Many veterans use their VA Home Loan Certificate of Eligibility to negotiate in good faith a private home construction loan and then refinance the completed home using VA Home Loans.