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Are you active or retired military, or even a military spouse? Good news! You may qualify for a VA loan! A VA loan is a type of loan that is guaranteed by the U.S. government to help active or retired military and their spouses obtain the dream of homeownership. The are several advantages to getting a VA-backed loan . Up to 100% financing, no monthly mortgage insurance, fixed and adjustable rates are available, among other perks. Explore other highlights as well as the 8 simple steps to a VA loan at BankSouth Mortgage. VA Loan Highlights: • Up to 100% financing • No monthly mortgage insurance • Available to active or retired military personnel, and spouses of the military • Fixed and adjustable rates are available • Conventional and Jumbo loan options available • Thin or alternate credit is allowed • 580 minimum credit score is required   Step 1: Get pre-qualified When you begin thinking about buying a home, contact BankSouth Mortgage to get pre-qualified. A pre-qualification gives you an estimate of the size of mortgage loan you qualify for based on your credit history, income, and assets. Step 2: Apply for your VA loan Once you get under contract, we will provide you with an initial list of documents that are needed to begin processing your loan. Quickly providing all of the requested documentation is essential to moving through the loan process without delays. Step 3: Disclosures Once we have a complete application, we will prepare a packet of disclosures for you to sign. Included in these disclosures is the Loan Estimate. It is very ...

Mortgage Speak

5 VA Loan Questions Answered

Nov 4
9:00
AM
Category | Mortgage Speak
November is National Military Family month, and it also includes Veterans Day on Monday, November 11. One of the many benefits the US Government provides to past and present members of our armed forces, and qualifying surviving spouses, is backing their home loans. A VA loan is a mortgage product offered by many private mortgage lenders that gives borrowers a zero-down payment mortgage option. The Department of Veterans Affairs (VA) guarantees part of the loan which allows the private mortgage lender to provide the veteran with more welcoming mortgage terms which make homeownership for veterans more attainable. The process of applying for and closing on a VA loan closely resembles that of other mortgage types. There are five main steps in the process of how a VA loan works: 1. Get prequalified 2. Provide loan documentation to your Mortgage Banker 3. Appraisal is ordered 4. Processing and Underwriting 5. Close on your loan Frequently Asked VA Loan Questions and their Answers Why should veterans choose a VA loan instead of a conventional loan? To start, VA mortgage loans give veterans the option of 100% financing, low loan fees, and typically lower than market interest rates. If the price for the home is equal to or lower than the appraised value, there is no money down required. A traditional conventional mortgage requires private mortgage insurance to be paid monthly and/or annually, whereas the VA loan fee, called the Funding Fee, is a one-time fee between 1.25% and 3.3% (as of October 2019) potentially saving the borrower thousands of dollars. What makes this Funding Fee different than conventional mortgage ...

Mortgage Speak

How Homeownership Builds Wealth The 4th of July is more than just a day for celebrating the freedom we gained as a nation nearly 250 years ago. It's a day for celebrating the individual freedom and opportunity afforded to each American — freedom that lets you reach for the stars and create the life you've always dreamed of. A part of that freedom means having the financial stability you need to pursue your life goals, and the earlier you secure financial freedom in life, the more opportunity you'll have to make your dreams a reality. If there's anything history has taught us, it's that homeownership is one of the best ways to build wealth and secure your financial future. Here are five primary ways being a homeowner can help you accomplish this: Homeownership can help create a forced savings . Most people aren't very good at putting money aside each month, but every financial expert would agree that having a savings cushion is essential for financial freedom. For homeowners, a monthly mortgage payment can act as a forced savings. As you pay down your principal, you build equity, which helps to increase your net worth. Homes usually appreciate in value. While there's no guarantee that the home you buy will appreciate, there's a pretty good chance. According to the Federal Housing Finance Agency's House Price Index , home values have appreciated an average of 3.33% each year since 1991. Based on this information, if you ...

Mortgage Speak

BankSouth Mortgage: Interest Rate Updates Many of you are likely aware of the recent rise in interest rates and may be wondering what’s next and what this means for the 2017 housing market.  While only predictions can be made, here is a recap of what we do know: The Federal Reserve (the Fed) raised benchmark interest rates by 25 bases points after the Federal Open Market Committee meeting in mid-December. This was the only Fed Funds Rate increase in 2016. Indications were made to suggest 3 potential rate hikes in 2017, with a 70% chance of one hike by June 2017. While these changes may concern those looking to buy and those in the housing industry, it’s important to look at the whole picture.  Over the past 7-8 years, we’ve seen interest rates not only reach historic lows, but stay there rather consistently.  As part of the effort to get America out of the most recent recession, the Fed purposely kept interest rates low to help drive economic growth and encourage homeownership.   As our economy has strengthened and unemployment rates have significantly improved, the need to keep interest rates down has, in effect, subsided and this rise in rates reflects an effort to get back to equilibrium. There’s no doubt that these increases will greatly reduce refinance demand, but the jury is still out on how it will affect home purchases.  While it’s likely home purchase demand will remain steady, one of the most important effects of rising interest rates is how they will impact affordability, especially in rapidly appreciating markets.  Ideally with a ...

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