In This Article:
- VA Home Loan and Refinancing
- Closing Costs
- Out of Pocket Closing Costs
- Finding A Lender
VA Home Loan and Refinancing
When you buy a house or refinance an existing loan through the VA home loan program, you’ll have many benefits that come with financing through a VA home loan. One of the most favorable benefit to the VA home loan is you won’t have to pay any money out of pocket at closing. You’re closing costs, if any can be rolled in your home loan or your refinance. Many lenders will advertise for “No Closing Costs” while others will advertise “No Out of Pocket Closing Costs” and while both of these headlines sound very similar they are actually quite different.
While it’s very rare to actually have no closing costs whatsoever it’s also very possible. No closing costs usually means your lender is going to pay the closing costs, however, this also means you will be paying a higher interest rate on your home loan or refinance. It’s not impossible to have no closing costs, just very rare and you’ll likely end up paying higher interest rates in exchange for the no closing costs.
Out of Pocket Closing Costs
Now that you know a little bit more about how closing costs work, we’re going to talk about “out of pocket closing costs” and why you may not have to pay them at the closing of your home loan or refinance. When you see a lender offering a VA streamline Refinance or a VA Home Loan with “zero out of pocket closing costs” or “no out of pocket closing costs” this means you won’t owe any money at the closing of your loan. How this really works, is your lender will roll your closing costs into your loan or refinance so you don’t owe any money up front at the closing of your loan. This is a very popular option with the VA streamline refinance program.
Finding a Lender
When looking to buy a home with a VA home loan program or looking at your VA refinance options you’ll want to find a lender who is VA approved. Having a VA approved lender when using a VA home loan program is important for a few reason. 1. When using a VA home loan program it’s required that the lender be VA approved and 2. Using a lender who has experience in VA home loans will help the home loan process move more smoothly and with less complications. If you already have a lender in mind, great! Just be sure to compare their rates and guidelines with other lenders in order to find the best possible rates. If you’re looking for a lender or looking for somewhere to start, click the link below and within minutes you’ll be matched with a qualified lender eager to help you with all your home loan needs and questions. Click the link below to get started. It’s quick and easy, and best of all it’s free. It only takes a few minutes to get started.