Category: Finance

A VA loan is a type of mortgage loan guaranteed by the United States Department of Veterans Affairs (VA) that is available to eligible veterans, active-duty service members, and surviving spouses. VA loans are designed to help veterans and military families buy homes, refinance existing mortgages, or make improvements to their homes.

One of the main benefits of a VA loan is that it does not require a down payment, which can make it easier for eligible borrowers to purchase a home. VA loans also typically have more relaxed credit and income requirements compared to conventional loans. Additionally, VA loans do not require private mortgage insurance (PMI), which can result in lower monthly payments.

It’s important to note that while the VA guarantees the loan, it does not actually lend the money. Instead, VA-approved lenders, such as banks and mortgage companies, offer VA loans to eligible borrowers. Don’t hesitate to reach out to a loan officer with Valiant Mortgage today!

When applying for a mortgage, lenders evaluate several factors to determine your eligibility for a loan and the terms of the mortgage. These factors generally include:

1. Income: Your income is an important factor that lenders consider when assessing your mortgage application. Lenders will typically review your employment history, current job status, and income level to determine your ability to repay the mortgage loan.
2. Property: The property you are purchasing is also a key consideration for lenders. Lenders will review the property’s value and condition, as well as the location and market conditions, to assess the level of risk associated with the loan.
3. Assets: Your assets, including savings, investments, and other forms of financial reserves, can also impact your mortgage application. Lenders may consider your assets when determining your ability to make the required down payment and to cover other costs associated with the loan.
4. Credit: Your credit score and credit history are critical factors that lenders use to determine your creditworthiness. A good credit score and history of responsible credit use can help you qualify for a mortgage and secure favorable terms.

Overall, lenders look at a combination of these factors to assess your eligibility for a mortgage loan and to determine the terms of the loan, including the interest rate and repayment period. It’s important to have a strong understanding of your income, property, assets, and credit before applying for a mortgage, so you can ensure that you are well-prepared and have the best possible chance of approval. Contact a loan officer with Valiant Mortgage Group to get pre-qualified today!

A conventional mortgage is a type of home loan that is not insured or guaranteed by the government, unlike FHA, VA, or USDA mortgages. Instead, conventional mortgages are backed by private lenders, such as banks and mortgage companies, and conform to the guidelines set by Fannie Mae and Freddie Mac, the government-sponsored entities that buy and sell mortgages in the secondary market.

Conventional mortgages typically require a higher credit score and a larger down payment than government-backed loans, but they offer more flexibility in terms of loan amount, property type, and borrower qualifications. Conventional mortgages can be used to purchase primary residences, second homes, and investment properties, and are available in fixed-rate and adjustable-rate options.

In addition, conventional mortgages may require private mortgage insurance (PMI) if the down payment is less than 20% of the home’s value. PMI protects the lender in case the borrower defaults on the loan, but it adds an additional cost to the monthly mortgage payment.

Overall, conventional mortgages are a popular option for borrowers who have good credit, sufficient income, and a substantial down payment, and who are looking for a flexible, customizable home loan that meets their specific needs. Contact us at Valiant Mortgage today to get pre-approved for a conventional mortgage.

There are several reasons why someone might choose to use a mortgage broker:

1. Access to a wider range of lenders: Mortgage brokers typically have relationships with a variety of lenders, including banks, credit unions, and other financial institutions. This means they can help you find a loan that meets your specific needs, even if you have unique financial circumstances.
2. Save time: Applying for a mortgage can be a time-consuming process, involving lots of paperwork and research. Mortgage brokers can help streamline the process by doing much of the legwork for you.
3. Expert guidance: A good mortgage broker can guide you through the mortgage process, explaining the different types of loans available, and helping you understand the pros and cons of each option. This can be especially helpful if you’re a first-time homebuyer or if you’re not familiar with the mortgage process.
4. Potentially lower costs: Mortgage brokers may be able to negotiate better rates and terms on your behalf, which can save you money in the long run.
5. Personalized service: Mortgage brokers can provide personalized service and support throughout the mortgage process, answering your questions and helping you make informed decisions. They can also help you navigate any challenges that arise during the process, such as credit issues or income verification problems.

Overall, a mortgage broker can be a valuable resource for anyone looking to secure a mortgage, whether you’re a first-time homebuyer or a seasoned real estate investor. Don’t wait and reach out to a Valiant Mortgage loan officer today!

The down payment required for a mortgage will depend on several factors, including the type of loan you are applying for and the lender’s specific requirements. Here are some general guidelines for down payments on common types of mortgage loans:

1. Conventional loans: Most conventional loans require a down payment of at least 3% to 5% of the purchase price. However, if you have a credit score of less than 620, you may need to make a larger down payment.
2. FHA loans: FHA loans, which are backed by the Federal Housing Administration, require a minimum down payment of 3.5% of the purchase price.
3. VA loans: VA loans, which are available to eligible veterans and active-duty military personnel, do not require a down payment.
4. USDA loans: USDA loans, which are designed to help low- to moderate-income borrowers in rural areas, do not require a down payment.

Keep in mind that making a larger down payment can have benefits, including lower monthly payments and potentially better interest rates. However, if you cannot afford a large down payment, there are still options available to you. Be sure to talk to your Valiant Mortgage loan officer to ask about all your options.

Raising your credit score can take time and effort, but there are several steps you can take to improve your creditworthiness. Here are some tips to help you raise your credit score:

1. Check your credit report: You can get a free copy of your credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) once a year. Review your report for errors or inaccuracies, and dispute any errors you find.
2. Pay your bills on time: Payment history is one of the most important factors in your credit score. Make sure you pay all of your bills on time, every time.
3. Reduce your credit utilization: Your credit utilization ratio is the amount of credit you’re using compared to your available credit. Aim to keep your credit utilization below 30% of your available credit.
4. Keep your credit accounts open: The length of your credit history is another important factor in your credit score. Keeping your credit accounts open and in good standing can help improve your credit score over time.
5. Don’t apply for new credit too often: Every time you apply for credit, it can have a small negative impact on your credit score. Try to limit your applications for new credit to only when you really need it.
6. Consider a secured credit card: If you have no credit or poor credit, a secured credit card can be a good way to establish or rebuild credit. With a secured card, you make a deposit that serves as collateral for the credit limit.

Remember that improving your credit score takes time and patience. It’s important to stay committed to good credit habits over the long term to see the best results. Please reach out to us today so we can guide you through your home buying journey.

Down payment assistance (DPA) is a type of financial assistance that helps homebuyers cover the down payment and/or closing costs associated with purchasing a home. These programs are typically offered by government agencies, non-profit organizations, or private companies and are designed to help low- to moderate-income homebuyers who may not have enough savings to cover the upfront costs of buying a home.

There are several types of DPA programs available, including grants, loans, and deferred payment loans. A grant is a form of gift money that does not need to be paid back, while a loan typically has to be repaid with interest. A deferred payment loan allows borrowers to defer payments on the loan until a later date, such as when they sell the home or pay off the primary mortgage.

DPA programs may have income and credit score requirements, as well as limits on the amount of assistance provided. Some programs may also require borrowers to complete a homebuyer education course before receiving assistance.

DPA programs can be a valuable resource for homebuyers who need help covering the upfront costs of buying a home. If you’re considering a DPA program, please reach out to us today!

A mortgage escrow waiver is an agreement between a lender and a borrower that allows the borrower to pay property taxes, homeowners insurance, and other related expenses directly rather than through an escrow account.

When a borrower takes out a mortgage, the lender may require them to establish an escrow account. This account is used to collect and hold funds for the payment of property taxes, insurance premiums, and other related expenses. The lender then makes these payments on the borrower’s behalf when they become due.

With an escrow waiver, the borrower agrees to make these payments directly to the relevant parties. This means that the borrower is responsible for budgeting and paying for these expenses themselves, rather than having the lender do it for them.

An escrow waiver may be beneficial for borrowers who prefer to have more control over their finances or who are able to earn interest on the money they would have otherwise deposited into an escrow account. However, it also means that the borrower takes on the risk of not having enough funds available to make these payments when they become due, which could result in late fees, penalties, or even foreclosure.

Buying a home can be an exciting and rewarding experience, but it’s important to be aware of the common mistakes that homebuyers can make. Here are some common mistakes people make when buying a home:

1. Not getting pre-approved for a mortgage: It’s important to get pre-approved for a mortgage before you start house hunting. This will give you a better idea of what you can afford and help you avoid falling in love with a home that’s out of your price range.
2. Failing to budget for all the costs of homeownership: In addition to your mortgage payment, there are many other costs associated with homeownership, such as property taxes, homeowner’s insurance, utilities, and maintenance. Be sure to factor in all of these costs when creating a budget.
3. Overlooking important details during the home inspection: A home inspection is a critical part of the home buying process. Make sure you attend the inspection and ask plenty of questions. Don’t be afraid to negotiate repairs or ask for a credit if the inspection reveals any issues.
4. Letting emotions drive the decision-making process: It’s important to keep your emotions in check when buying a home. Don’t let a beautiful kitchen or amazing backyard cloud your judgment. Stay focused on your budget and your needs.
5. Skipping the title search: A title search is an important part of the home buying process that ensures the property is free of any liens or other legal issues. Skipping the title search can be a costly mistake.
6. Failing to consider the future: It’s important to think about your long-term goals when buying a home. Will the home meet your needs for the next 5-10 years? Is it in a location that will be convenient for your job or your family’s needs?

Avoiding these common mistakes can help you have a smoother, more successful home buying experience. Allow Valiant Mortgage to be your advocate when purchasing a home!

An FHA loan can make homeownership a reality for those who are buying their first home, don’t have a long credit history, excellent credit, or a lot of cash to make a down payment. There are still minimum requirements that need to be met to qualify, however they are much less restrictive than requirements for conventional loans. The FHA designed this loan program so more people would be able to obtain a mortgage and own a home. Here are some of the requirements that you need to consider.

• An FHA loan is backed by the Federal Housing Administration which means there is less risk involved for the lender and they are likely to approve more loans.
• The down payment requirement for an FHA loan can be as little as 3.5%.
• You can typically qualify for an FHA loan if you have a minimum credit score of 580.
• Closing costs may be covered using gift funds.
• No matter what your down payment is you must pay a monthly mortgage Insurance Premium. There is also an upfront MIP, which equates to 1.75% of the total loan cost, due at closing. This is the most well-known downside to choosing an FHA loan as it increases the overall loan amount.
• The property must be your primary residence. Therefore, you cannot finance an investment property using an FHA loan.
• The property must be appraised by an FHA-approved appraiser and meet their strict property guidelines.

Learn more about FHA loans

If you’re considering an FHA loan, get in touch with a loan officer with Valiant Mortgage today. They can help walk you through the requirements and determine if this is the right program for you.