by Wes Waddle on September 2, 2010
When I first started doing VA Mortgages about 20 years ago, I wanted to learn all of the benefits and features that would be available to our military personnel; both past and present. Not long after I did my first few VA loans I had a veteran ask me to refinance his VA mortgage. Not knowing a great deal at that time I asked my processor about a VA refinance and she mentioned that she was not qualified for such a loan as these loans have many “technical” aspects. Next, I asked my manager. He mentioned that he had not done a VA loan in quite awhile but he was “somewhat familiar” with the VA Interest Rate Reduction Refinance Loan (also know as the VA IRRRL; pronounced “Earl”).
If you follow my teachings and writings you will find that I crave knowledge. I want to learn everything I can about the technical aspects of any loan program (or anything else I study). I learned quickly that the IRRRL loan was one of the greatest benefits of a VA loan; a quick refinance with no mortgage insurance. Let me give you one success story…
Just a few years ago a veteran came to me and (as of yet) had not been able to get his VA Certificate of Eligibility. I was able to help him to handle the paperwork and soon we closed his VA Purchase loan. About 18 months later he called me and was about to fall behind on his payments as his hours had been cut by his civilian employer. I suggested a VA IRRRL. He was thrilled to know that the Veterans Administration would be able to change him from a 30-fixed to another 30-year fixed (or adjustable if he preferred) and lower his interest rate without a lot of “red tape”.
This meant that our borrower was able to lower his interest rate, roll in the closing costs, not have to make a payment the month after the refinance closed, and lower his payments. All he had to do was to call me. He then went back to his U S Army Reserve Unit and let the other military personnel know of the transaction. If you know of a veteran who wants to lower the interest rate on their VA loan…. NOW IS THE TIME. The interest rates are the lowest they have been in years. Have them call me; say they are a veteran and they want to know more about my friend “IRRRL” (pronounced “EARL”).
If you are a veteran; contact me directly at weswaddle.com. As always; thank you so much for your service.
by Wes Waddle on August 27, 2010
Before I moved at Arizona in 2005, I had a Department Of Defense (DOD) pass on my Jeep which allowed me to have access to certain military installations on the east coast. I typically would visit the base at least one day each week. One day I received a call from the base asking for an appointment. This was not unusual. I was to speak to a married couple who wanted to purchase a home near the base.
These two individuals were both active duly U S Air Force enlisted personnel. He was going to TDY (temporary duty) in just a few days to go to school for a few weeks. She, however, was six months pregnant. They really wanted to buy a house for the new baby. They planned to stay in the area for a few years and did not want to live on base. They had managed to save up $5000 for furniture for the new house. They were going to be “proud” parents. The excitement just beamed as they smiled and spoke of the future.
As soon as I could get them pre-qualified they were out looking at houses. In just a week or two they found the perfect house. They called me and were both happy and sad at the same time. They were happy about the house. It seemed perfect, but they were sad as the Realtor informed them that this house was in high demand and the seller required an earnest money deposit of (you guessed it) $5,000. My reply was “Don’t worry. Give them the $5,000. You’ll get it back at closing.”
As a loan officer, I have been told many times that a borrower is not permitted to “get money and get keys” at the closing table. But I learned many years ago this rule, “You have an advantage within the rules; if you know all of the rules”. It is true that they were not permitted to receive borrowed or undisclosed money at the closing table; however, they were permitted to receive “excess earnest money”. These (soon to be) new parents were so happy when they received a check for over $4600 at the closing table so they could buy the new baby furniture.
We became friends after that time. They were really pleased a year later when I told them the interest rates were falling and they qualified for an IRRRL (Interest Rate Reduction Refinance Loan) with no appraisal and no money out of their pockets. This allowed them to go one month without having to make a payment and have lower monthly payments.
Our veterans deserve the best treatment possible. If you’re a veteran; Thank you for your service!
