I am retired from the military, have been a member of USAA for over forty years and have always been treated very well. Now I need some advice.
I have been advised to get pre-approved for a mortgage to buy a new home, and would like to know what's involved.
I currently live in a condominium and have a 15 yr mtg, with about 13 yrs remaining after a refi that got me down to 3%.
My wife and I want to move to a house. Our plan is to sell the condo and a townhouse that she owns, and buy a nice house.
Please fill me in on what's involved in a pre-approval, considering my existing mtg, and what the time frame will be.
Also, what difference would a VA loan make? Should I consider it?
Here is the answer from our expert Mark:
It depends on your debt to income ratio. As long as your income is sufficient to keep your debt ratio at or below what the loan requires you won’t need to sell properties prior to buying the new one. A USAA loan specialist can review this with you in more detail. If you plan to sell prior to buying the new home, you can still get preapproved and will want to ensure any purchase contracts you sign are contingent to the sale of your other properties. A USAA Movers Advantage Realtor can provide more details. As far as using a VA loan versus another loan; you’ll want to consider the rates available along with the VA funding fee if it applies to you. If you are receiving any service related disability payments the VA funding fee is waived. If not, down payment options can lower the funding fee. Again, a USAA loan specialist will be happy to explain these options in greater detail.
A specialist can be reached by calling 1-800-531-USAA (8722).I hope this answers your questions!