There are nine community property states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.

In a community property state any property acquired during a marriage and any debts incurred are the responsibility of each married couple equally. For the purpose of obtaining a VA loan in a community property state, both spouses’ debts are considered, even though one spouse may or may not be a co-borrower. For this reason a credit check is required, because all debts are listed on the credit report.

If one spouse is not a co-borrower, his/her income will not be considered, and the income of the spouse applying for the loan must support all the debts of each.

Medical collection may not be any fault of your own, however if the medical provider doesn’t receive prompt payment he may report you to the credit bureaus. This will have a negative impact on your score and can often prevent you from getting a home loan. If you have medical collection because TRICARE didn’t pay a bill, contact us today!

Congress approved the extension and modification of the home buyer tax credit. Now veteran using VA loans to buy homes have until 30 April 2010 to sign a home contract. Homes must be closed by 30 June 2010.

Members that have been deployed for 90 days or more between 1 Jan 2009 and 1 May 2010 have been granted an extension until 30 April 2011 to sign a contact on a home.

This new credit is 10% of the purchase price up to $8,000. Any home purchased over $80,000 wil lget maximum credit of $8,000!

This tax credit applies to first time home buyers, and previous home owners that have not owned a home in the last 3 years. Additionally, current home owners of 5 years or more that are selling their current home and will buy another will get a maximum $6,500.

Hurry, this is a limited time government offer!

To qualify for a VA loan you must have an income that supports the mortgage payment as well as all other debts. For active duty personnel your base pay, housing allowance and food allowance counts for this purpose. If you have special pays that are temporary such as hazard pay for deployed locations, this cannot be used.

Additional your spouse’s income can be use if she is applying as a co-borrower.

For the purpose of getting qualified, we increase your BAH and food allowance pay by 25%. This is done because you don’t pay taxes on these entitlements.

If you are separating from active duty within 12 months of the closing date, then you MUST prove that you will be employed and able to meet your mortgage obligations. If you are already separated or retired, then 2 months of recent pay stub activity is all that is required.

If you receive retirement pay or VA disability pay this counts as income.

To get qualified or to get answers to your questions, contact us today!

It only takes our staff 10 minutes to get a veteran pre qualified for a VA loan. All you need to do is complete the pre qualification worksheet and email or fax it back to us and we can get started.

http://va-loans.com/Pre-Qual-Purchase-gen.pdf

All you need to do is contact us. Our friendly no sales pressure staff is here to help you make the right decision. We will review your income and debts and let you know if you qualify for a VA loan. Its quick and easy.

Discount points is a fee you pay the lender to get a better rate. For instance the going rate may be 5.75% but the lender may offer you 5.5% and say its with 1 point, or 1% of the loan amount. Its completely up to you if you choose to pay points to get a better rate, or pay nothing and still get a good rate.

Some lenders when quoting VA interest rates won’t give you a choice, they simply want you to pay the points because doing do means more profit for them.

Our last post sparked an important thought that needs to be reiterated. Mortgage rates cannot be guaranteed until your complete application has been submitted. That is why the interest rate is only a quote. They can change daily so no one will guarantee a rate until its locked.

Many mortgage companies will take advantage of this by quoting you a rate lower than what it really is just to earn your business. Then when its time to lock, they give you the real rate and say sorry, the rates increased. Or, they may quote you an honest rate, but when its time to lock quote you a much higher rate because by then you feel trapped or obligated.

Solution – When you are ready to lock with your lender and he gives you the rate that he wants to lock, CALL another lender immediately, or better, CALL US! Ask for a rate quote and compare the two. Comparing rates really needs to be done at the same time to get a real comparison because remember, rates can change multiple times per day.

If your current lender is taking advantage of you, you will know if there is a big difference in the rates.

Here at MilitaryLink, we provide you with an honest quote every time. We are a veteran owned company, with many veterans loan officers, we don’t take advantage of our own!

When you are quoted a VA loan rate by us or another lender, you will be told that the rate could change. This is because rates really do change, sometimes multiple times per day. Rates are affected by the bond market and if the bond market moves it can cause lenders to adjust their mortgage rates during the day.

When you contact a lender and ask for a rate quote, it’s only a quote for that very moment. Unfortunately we can’t guarantee or lock the rate at that time. Before locking a rate we need a complete application and we need to determine you qualify for the loan. When a rate is locked it tells the lender or investor that we are going to use that money for a home purchase, so the money is set aside so no one else uses it. If loan officers were allowed to lock an interest rate for each client that asks, all the investor money would be set aside but rarely used. How many companies have you contacted to get a rate quote? Chances are your shopping so if you contacted five or ten, an investor would have 5 or ten times the requested loan amount set aside for one person. See what I mean?

That is why unfortunately rates cannot be locked simply because someone inquires about a rate quote.

Here at MilitaryLink LLC, we always look out for the veterans best interest. We provide you with an honest rate quote, and tell you up front that it could change. We get your application in as quickly as possible so that we are ready to lock, then, we will keep you informed about the rates so when YOU ARE ready to lock, we will lock the rate for you.

Many unethical lenders will use this to their advantage so when they earn your business, they increase your rate unnecessarily then tell you that the rate went up even if it didn’t.

When you apply with a company, and the day you get ready to lock and the loan officer tells you that the rate went up, before you lock, CALL US or another lender to get a second opinion. Calling someone else who thinks they may earn your business, will provide you with an honest and current rate lock. If it’s much lower than your current lender, chances are he’s taking advantage of you and you should find another lender.

This month we have seen va rates rise to 5.5% again. When rates rise many homeowners think they can’t refinance their high interest rate loans and buyers decide to wait for better rates. The fact is, even at 5.5% this is a great rate. However, if your wanting to refinance, your current rate should be 6.5% or higher to  benefit from a refinance. If you’re buying a home, and you already found the one you want to buy, 5.5% is still a great rate to lock in. If you’re not ready to refinance or buy, then there is plenty for rates to drop, but you need to be ready.

Apply now, and wait. Now is the time to get all of your documents submitted to your loan officer, so that you can be approved for a loan. Then, we can hold your file until rates improve. When rates drop, we can be ready to lock in a low va rate and get your loan completed quickly.

You can keep your loan on file with us for 90 days or more. There will be just a few things in your file that will need to be updated when its time to lock in your rate, such as updating your most recent paystub and bank statements.

So if rates are higher than you wanted now, apply anyway so you’re ready when the rates drop again.

VA Rates have been rising over the last couple of weeks. This is mostly because the stock market is getting stronger and investors are taking their money out of the bond market and putting it into the stock market. (bond markets affect mortgage rates). Many military buyers are asking if they should buy now or wait to see if rates will come back down.

It’s difficult to say what direction the va rates will move this week, next week and beyond. The economy is recovering so we could see rates continue to rise to the 6.5% levels as investors continue to put their money into the stock market. However I doubt they would go beyond that during 2009. At the same time, there are many unknown factors. The government has been pumping allot of money into the housing industry buying up bad loans. This could cause rates to fall back down as more investor money is made available. Some investors don’t like the risk of the stock market and prefer to keep their money invested in real estate which traditionally has always been the safer investment. More money in the bond market means lower rates.

What you need to consider is the difference in monthly payment and your current needs. On a $200,000 loan the difference between 5% and 6% interest rate is $125.64 a month. If you can’t afford the increased payment then you simply buy a slightly cheaper house. For instance:

$200,000 at 5% equals a $1073.64 Principle and interest payment (not including taxes and insurance)

$180,000 at 6% equals $1079.19 Principle and Interest payment.

So you buy a home today that is $20,000 cheaper, but because of the current housing market conditions and the fact many home values have dropped 20% or more, you’re really getting a $216,000 dollar home for the price of $180,000! So you’re still in a better position to buy now as rates increase than risking the wait for rates to come back down while home prices rise during the economic recovery period.

Interest rates are on the rise from a low two weeks ago of 4.75%. We are now seeing daily rates from 5.12% to 5.25% with occasional spikes to 5.5%. This is bad news for applicants hoping to lock in at 5% or lower. There are several factors that may affect the current rise in rates. The biggest factor is the economy is improving so investors are starting to put their money into the stock market again and less into the bond markets which affect interest rates.

No one knows where rates are headed and we move into the summer months. But don’t let a .05% rate change determine if you should buy a home. Home prices are still at record lows, and interest rates at 6% would still be considered a great rate. Contact us today and get locked into the low fives while rates are still low.

www.va-loans.com

Are you confused over your GFE? Have a look at our new interactive Good Faith Estimate and learn how to read each section. If you have a GFE from another lender we will be happy to compare it with ours and look for junk fees.

Sample GFE

When you apply for VA loan, the broker has 3 days to provide a Good Faith Estimate (GFE). This document will include all the fees associated with your loan. If you have a GFE and you’re not completely satisfied with the service you’re getting or if you have questions about if you’re getting a good deal, send us your GFE for free review. We will look for errors, junk fees and anything that may be misleading. If it’s a solid offer, we’ll tell you! If we think we can do better, we’ll tell you that too.

Fax it now 866-610-1577

Do you have a copy of your credit report? We are offering a free Credit report review to help you determine if you qualify for a VA loan. This is a free service to you. All you need to do is fax your credit report to (866) 610-1577. A licensed loan officer will review your report and let you know if you could qualify for a loan. NO APPLICATION REQUIRED!

Get your FREE annual credit report from www.annualcreditreport.com

Or for a low $14.95 you can buy your credit report including scores from www.Truecredit.com (remember to cancel your account or you will be billed month to month)

Also please note, FreeCreditReport.com is not FREE!

In today’s real estate market selling a home is very competitive. Sellers have learned that if there is an interested buyer, they have to keep them happy or you’ll go find another home. Sellers are routinely offering incentives to attract buyers. The most common is closing costs. If the seller is offering closing costs this is a huge  benefit for you.

As a buyer, you could have 3-4 thousand dollars in closing costs. Many buyers wrap these costs into the price of the loan, which in turn slightly increases the  monthly payment. So if the seller is offering closing costs, find out how much and let your loan officer know. If not, consider asking for closing costs as part of your offer. You should never offer more than the asking price just to get closing costs. If the seller is motivated, they will agree to it at the original price.

Depending on the amount the seller is willing to pay, it could be more than what your fees are. If there is enough left, your loan officer may be able to buy down the interest rate on your loan, which will lower your rate and your monthly payment.

Recently a buyer applied for a loan, but did not qualify because she didn’t have enough money in the bank to pay all the closing costs. But as soon as the seller agreed to pay the closing costs, the buyer qualified!  Additionally,  after the closings costs, there was enough left to buy down the interest rate  ¼ point, saving the buyer $50 per month on their mortgage payment.

This article is in responce to the ABC news article located here:

http://abcnews.go.com/Business/Economy/story?id=6976375&page=1

I certainly think 4% mortgage rates would get us out of the housing cruises as well as stimulate the economy. Lower interest rates and a 40 year mortgage will make home affordability for more people and this alone will reduce the inventory so home prices will rise again. The argument that it would not help because unemployment rates are too high is another poor argument. There are tons of jobs tied to the housing market, that when people started buying it would create jobs in many industries besides the obvious, including: Real estate, finance, insurance, home builders (plumbers, electricians, HVAC technicians, carpenters, building material suppliers) home furnishings stores, manufacturers of these products and many more. Just like millions of people are affected if the auto industry tanked, the same can be said if the real estate market revives.

The problem with this scenario was articulated in the ABC news article, where would the money come from? Investors have to provide the money for banks to loan to borrowers, and if the government mandated a 4% interest rate, many investors would rather buy a 4.5% CD and leave the money In the bank, or place it into the stock market which stand to make a significant recovery when the economy starts to turn.

It is my opinion if the government ever decided to mandate a 4% interest rate, they need to be prepared to provide the funding. This would allow the government to make 4% on an investment instead of dolling out billions to Wall street to bail them out with not guarantee of seeing a return.

In the meantime, 5-5.5% is a great rate to buy a home. And if the government decided to mandate the 4% rate, it would be well worth the time to refinance your home.

You may have heard about the Federal First time home buyer tax credit that was signed into law. This is an $8000 tax credit for first time home buyers. When you file your 2009 federal tax return you will receive the credit.

Here are the basics:

Only first time home buyers - A first time home buyer includes buyers that have not owned a home in the previous three years.

Purchase price eligibility - The credit is equal to 10% of the purchase price up to a maximum of $8000.

Eligible dates are: 1 January 2009 to 1 Dec 2009.

Income eligibility – Single tax payers with incomes up to $75,000 and married couples filing joint returns earning up to $150,000

Unlike the previous $7500 tax credit, this one does not have to be repaid.

Contact us today for details.

We have seen allot of refinance applications since the interest rate drop in December. Most applicants are trying to refinance an already low interest rate into a teaser rate seen on advertisements all over the web. The truth is, VA interest rates are hovering between 5-5.5 %. Yesterday’s rates climbed to 5.75%. To refinance a loan into this range a home owner would have a rate of 7% or higher before the cost is worth the benefit. Typically on the average home price you will want to save 1.5% on a refinance and plan to stay in the home several years. However with most military homeowner moving after just 3-4 years, we often recommend against refinancing.

If your shopping for a va loan and have contacted several websites, one thing you will learn really fast, is that everyone wants your business. If you are contacting multiple websites hoping that someone will contact you back, you’re in for a big  surprise.  In today’s declining housing market not only are real estate agents desperate for a sale, but so are loan officers. Loan officers make money when people like you buy homes. So if you apply or even contact a lender, you can bet they are going to contact you back. However, you will notice that more people will contact you than your expect. That’s because many online VA loan companies are not mortgage brokers at all. They are what we call “Mortgage Lead Generating Companies”. They get your name, number and email and sell it to multiple lenders and loan officers around the country. You may never know it, until people from companies you have never heard of, begin contacting you. And trust me, they will contact you. Day or night, and they keep calling. You may be in San Diego and you some chipper guy calls you at 4.a.m because he’s in Tampa Florida and just bought your number from a lead company. To him your next month’s car payment! How impersonal is that!

Its not uncommon for mortgage leads to get sold a couple dozen times for weeks or even months. We hear stories from previous clients that were contacted by loan officers months after they had purchased their home.

So please be careful who you contact and know if they represent a real mortgage company or if they are just harvesting names to sell to dozens of hungry brokers.