VA Loans & Closing Costs: How does it work?

#valoans #preapproval #realestate #valoanclosingcosts

Rob warriors jimmy versolino here united states marine corps veteran and your very own highly motivated producing branch manager with goldwater bank mortgage division specializing in va loans thanks for hanging in there with me on that all right guys so here’s the deal today i’m going to talk with you a little bit about va closing costs it’s one of these questions

That i tend to get more often than not from veterans that watch this channel and since i’m asked this question so often i think it’s important that we spend some time in unpacking the va loan related costs so that way you’re well informed equipped educated and ready to put rounds down range and go out there and find a home good to go all right but here’s the

Deal before i do would you consider your love or excuse me would you consider showing your love by clicking like and subscribing to this channel and lastly commenting down below believe it or not by doing those three simple steps it helps you and i to educate more veterans and active duty service members across this great nation i was having a conversation with a

Veteran this week and he said to me jimmy you know i was under the impression that my va loan didn’t have any closing costs listen that’s just not true our va home loan will always have costs associated with the loan older veterans have also said to me in years past they’ll say jimmy i thought the va loan was a a no-no it stands for no closing costs and no down

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Payment veterans this is just simply not true the va loan has the same exact costs in conjunction with the loan as any other type would right or any other loan type conventional loans fha loans both have closing costs va loans also have closing costs that you as the veteran need to be prepared for in budget at the close of escrow so that way you’re well prepared

To be able to close on your house good to go so what are some of those closing costs well number one you got to take into consideration the lender that you’re working with will have usually fixed costs associated with the loan from lender to lender that will vary so make sure that you’re rogering up with your lender upfront and you know exactly what those charges

In conjunction with the mortgage loan will be good to go in addition to that you’re also going to have third-party costs so third-party costs are things like title all right title insurance policies the escrow related costs they’re the ones that facilitate the transaction for you when you’re purchasing appraisal the va is going to send out a licensed appraiser

By the department of veterans affairs to appraise that property in most states what we’ve seen is it’s about 600 or so that you’ll also need to pay for upfront okay so you’re going to also have to pay prepaid items okay now that prepaid word is a little tricky and the reason why is because when we hear the word prepaid we’re thinking well actually i’ve got to

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Pay that upfront not exactly what you’re doing is is you’re paying for those prepaid items at the close of escrow so what does prepaid consist of it consists of the following interest the prepaid interest in conjunction with the loan depending upon which day of closing can vary you’re also going to have to pay things like prepaid insurance mortgage lenders

Typically require a one-year premium due up front at the close of escrow now there’s also something called an escrow account the escrow account is like a fancy way of saying savings account where the lender collects two to three months of taxes and another three months of insurance and they put it into this account so that way when you make your payment to the

Mortgage lender every month there’s going to be enough money and the mortgage lender can pay them out to your insurance provider and pay the taxes on your property so a good general rule of thumb and this will vary depending upon where you live but you could estimate that the total costs in conjunction with a va loan will typically be anywhere from two to three

Percent of the purchase price now again this can vary depending upon loan amount and purchase price so make sure that you’re reaching out to your mortgage lender up front before you go out and start shopping so that way you can know exactly what to expect and properly budget for your cash to close on a va loan if you have any questions regarding a va home loan

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Benefit i am here to be a resource for you for more information you can visit my website at va loans for vets dot com or you can call me direct at 602-908-5849 hey thank you and may god bless you for your service to our great country semper fi you

Transcribed from video
VA Loans & Closing Costs: How does it work? By Jimmy Vercellino