VA Home Buyers Virginia Beach - Wells Fargo Lending Credit

VA HOME BUYERS VIRGINIA BEACH - WELLS FARGO LENDING CREDIT  

Do you have Military Va benefits? Are you a VA Home Buyer? Are you retired? Are you prior military? If you answer yes, then the reading below will give you great knowledge moving forward with your VA loan. I believe it is very important to know your buying power as a buyer and if you are a seller then knowing and having a Realtor that knows the lending world will set you apart from the inexperienced agents across the board.

I would like to introduce you to the new lending world of 2013.  Much has been said about the strong hold of lenders and mortgage companies within the market of real estate.  Well today, I have great news for all Va buyers and even sellers.  I will first talk about the benifits using rates that are subject to change and lender credits from Wells Fargo which are also subject to change.  If you can take advatage of these great buying techniques then do so quickly.  If you are a seller please be aware of these changes and be sure to ask your agent if he or she is aware of the changes, because it could save you tons of money in closing costs and prepaids.  There are four main subjects we will cover Wells Fargo lending credit, Va loan stucture, buying down closing costs and current credit standards. 

Wells Fargo Lending Credit Va Home Buyers Virginia Beach.  Breaking down the lender credit can be confusing, but have no fear Derek is here! I will break down every aspect if I miss anything at all or you feel you still have questions please feel free to call me or email at dwhiteside@roseandwomble.com. So the lending credit is a great program by Wells Fargo, however many other companies may offer similar programs, no one can seem to compete with what I and Wells Fargo can offer you.  I would like to break down an example before going straight into the numbers.  Lets say you have found that beautiful home of your dreams and the purchase price is $280,000. So at an average your total cost of closing cost to include prepaids is $10,128.00.  That is roughly 3.56%. Who pays that closing and prepaid cost? Well that depends on you and your agent. Most markets across the country right now have the sellers paying atleast some if not all closing.  This is a huge negotiation tool for you and your agent. Personally I try to have seller pay as much closing and prepaids as possible to relieve my buyers from finacial stress. On the flip side if I am working with the seller I try and negate all closings costs.  Within the Wells Fargo lender credit program it truely can benefitt both sides.   Back to our example closing costs $10,128, our sellers have come to an agreement to pay $9,700 of the closing and prepaids.  Whats left? Oh, I know $428. Lets say hypethitacally that your buyers just had an emergency and had no money to bring to the table, now what? No Deal? No Home? Push Back Closing? No! No! No! The deal and your dream home is very much alive as long as you're working with a savy agent and lender. This is where Wells Fargo kicks in there great lender credit program. 

Lender Credit Example:

Sale Price:                             $280,000

Down Payment                                 $0

Loan Amount:                        $280,000

VA Funding Fee:                        $6,000 (if disabled veteran NO funding fee)

Total Loan Amount:                $286,000

Summary of Closing Cost & Prepaids

   Lender Fees:                     $3,360

   Settlement Fees:               $4,575

   Prepaid Expenses:             $2,193

   Total:                              $10,128

Rate & Lender Credit Opitions

Interest Rate                                Lender Paid Costs                    Needed From                      P&I Payment

                                                      "Lender Credit"                       Buyer/Seller

3%                                                        Zero                                  $10,128                             $1,206

3.18%                                                  $1,430                                 $8,698                              $1,225

3.25%                                                  $5,170                                 $4,408                              $1,245 

The above example is great cheat sheet for you and should give you great leverage when detailing your negotiations.  This example shows in detail what the lender credit can and will do for you as a buyer and seller.  There is still one very importnat aspect that I have failed to mention.  I am a firm believer in saving the best for last. If you look at the example above there is $10,128 in closing cost that need to be covered.  Lets make a scenernio here, the seller agrees to all but $500, so then what?  Well you as the buyer have two opitions you can come out of pocket for the rest or you could apply one of three lender credits.  As you can see from the example the intresest rates do go up, but at a very small amount. So lets say you choose to take full advantage of the lender credit and choos opition three 3.25%. The $5170 is obviously more than the $500 you need so what happens to the rest? Well, with this Va lender credit program you can use the rest to pay down some of your debt for example. You have a car loan with $3000 note you could apply the rest of the lender credit to that car loan to pay that loan off.  I know! I kno1 Its amazing! 

This paticular program is a one of kind.  It benefits both sides buyer and sellers but many agents don't know it exists or even care to understand that side of the transaction.  I believe knowing all phases of the transactions sets all my clients up for success. I would like to end with this statement. If you need finacial advice, a real estate agent that knows the market and current conditions, or an agent who understands the finacial, then call me directly or email me your questions and concerns at dwhiteside@roseandwomble.com