There are many different expenses that are associated with becoming a homeowner and it is so much more than just getting a mortgage for which you can afford the monthly payments. The VA loan program is one that is unique compared to the ‘traditional’ home buying route, which means that there are specific and innovative ways that you can save money while still getting what you want out of the mortgage program, way more ways than if you apply through other programs and systems.
To help you get a better idea of what you should be doing in order to maximize your potential and your circumstances, here are six of the best tips for helping to save money on your VA loan.
- Make A Larger Down Payment
One of the unique benefits of a VA loan is the fact that you aren’t required to provide a down payment if you are unable to, but at the same time, they are accepted if you have a lump sum ready and want to use it. The larger the down payment is on your property, the lower the monthly repayment costs are going to be, and this might serve to save you lots of cash in the long run. If you had the foresight to save for a down payment, it will save you money in the future.
- Ask The Seller To Cover Closing Costs
When negotiating with a seller, there are things called concessions that can be proposed from either side to try to help speed the process along. One of these concessions is the prospect of having the seller cover the closing costs of the property sale. They might be willing to do this if they are in a real hurry to close the deal, so it never hurts to ask!
- Pay Discount Points
VA loans have some of the lowest mortgage rates on the market, and there is a way for them to get even lower. Discount points are additional fees that you can choose to pay at the closing stage, and by paying these fees, your lender will agree to reduce your mortgage rates by a set amount. What you are basically doing is paying some of the interest upfront, and another great advantage is that discount points can be tax deductible.
- Make Extra Payments
If you get to a stage in your life where you have more money in some months than others, then there is always the option to make extra payments to chip away at your mortgage. One thing to remember, though, is to check with your individual lenders to make sure that you won’t incur any early payment penalties.
- Finance Your Funding Fee
There is a thing called a VA funding fee that you are required to pay as a flat cost at the closing stage, but you are able to finance this funding fee to spread the cost out over a number of payments, rather than having to stump up a larger sum all at once.
- Negotiate A Lower Mortgage Rate
There is a system in place called VA Streamline Refinance, which is a system that is designed to help you explore options for reducing the mortgage rate on your loan. As you know, VA loans are the most flexible out there.
Now that you have all of these tips in hand to save as much money as possible, head over to the WhatsMyPayment website to use the calculator tool and to make sure that you are eligible for all of the fantastic benefits and advantages that securing a place within the VA loan program can bring you.
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