VA Home Loans in Annapolis, MD

Yes. Eligible borrowers may be able to use their VA loan benefit more than once, depending on entitlement and program guidelines.

No. VA loans do not require monthly private mortgage insurance.

For most eligible veterans with full VA entitlement, there is currently no VA loan limit. County loan limits may still matter if you have partial entitlement remaining because you currently have a VA loan or have not restored entitlement from a previous VA loan. In those situations, county-specific limits can certainly affect how much you can borrow without making a down payment.

Many VA loans allow eligible borrowers to purchase with no down payment, although some borrowers may still choose to make one.

Pre-approval can often be completed quickly once required documentation is received. Timing depends on the borrower’s financial situation and how complete the documentation is.

The Department of Veterans Affairs does not set a minimum credit score requirement for VA loans. However, most lenders establish their own credit guidelines. Most lenders will look for credit scores in the low to mid 600's.

Yes. VA loans can be used to purchase condominiums in Maryland.

Closing costs vary based on the property, loan amount, and location, but many Maryland VA buyers can expect closing costs to range between approximately 2% and 5% of the purchase price.

Most VA loans in Maryland can close within approximately 30 to 45 days. When buyers are pre-approved and documentation is provided promptly, many VA transactions close on a timeline similar to conventional financing.

A mortgage larger than the maximum eligible for conforming purchase by the two Federal agencies, Fannie Mae and Freddie Mac.

It is an upfront cash payment required by the lender as part of the charge for the loan, expressed as a percent of the loan amount; e.g., "2 points" means a charge equal to 2% of the loan balance.

This is the process of determining whether a customer has enough cash and sufficient income to meet the qualification requirements set by the lender on a requested loan. A pre-qualification is subject to verification of the information provided by the applicant. A pre-qualification is short of approval because it does not take account of the credit history of the borrower.

A rate lock is a contractual agreement between the lender and buyer. There are four components to a rate lock: loan program, interest rate, points, and the length of the lock.

A mortgage broker counsels you on the loans available from different wholesalers, takes your application, and usually processes the loan which involves putting together the complete file of information about your transaction including the credit report, appraisal, verification of your employment and assets, and so on. When the file is complete, but sometimes sooner, the lender "underwrites" the loan, which means deciding whether or not you are an acceptable risk.

Not necessarily. In fact, if you are a reasonably astute shopper, you will probably do better dealing with a mortgage broker. Mortgage brokers do not add any net cost to the lending process, because they perform functions that would otherwise have to be done by employees of the lender. Furthermore, because mortgage brokers deal with multiple lenders -- in a typical case, 25 to 30, sometimes more -- they can shop for the best terms available on any given day. In addition, they can find the lenders who specialize in various market niches that many other lenders avoid, such as loans to applicants with poor credit ratings, loans to borrowers who do not intend to occupy the property, loans with minimal or no down payment, and so on.

Both income and assets are disclosed and verified, and income is used in determining the applicant's ability to repay the mortgage. Formal verification requires the borrower's employer to verify employment and the borrower's bank to verify deposits. Alternative documentation, designed to save time, accepts copies of the borrower's original bank statements, W-2s and paycheck stubs.

Stated income/verified assets: Income is disclosed and the source of the income is verified, but the amount is not verified. Assets are verified, and must meet an adequacy standard such as, for example, 6 months of stated income and 2 months of expected monthly housing expense. Stated income/stated assets: Both income and assets are disclosed but not verified. However, the source of the borrower's income is verified. No ratio: Income is disclosed and verified but not used in qualifying the borrower. The standard rule that the borrower's housing expense cannot exceed some specified percent of income, is ignored. Assets are disclosed and verified. No income: Income is not disclosed, but assets are disclosed and verified, and must meet an adequacy standard. Stated Assets or No asset verification: Assets are disclosed but not verified, income is disclosed, verified and used to qualify the applicant. No asset: Assets are not disclosed, but income is disclosed, verified and used to qualify the applicant. No income/no assets: Neither income nor assets are disclosed.

It is the list of settlement charges that the lender is obliged to provide the borrower within three business days of receiving the loan application.