What I usually need to get started
Typically, I just need an updated driver’s license and current mortgage statement. A true VA streamline IRRRL generally requires very little documentation and no appraisal.
- Updated driver’s license
- Current mortgage statement
- A quick review of your existing VA loan
- Your goal for the refinance
Know the red flags
If a lender asks for all the same income, asset, and employment documents you provided for the original loan, ask why. They may not be processing it as a true VA streamline IRRRL.
- Do not judge the offer by the advertised rate alone
- Check how many points and fees are attached
- Compare the monthly savings with the total cost
Seasoning and recoupment
VA IRRRLs generally require at least 6 payments and 210 days of seasoning. Applicable refinance costs must generally be recouped within 36 months.
- Confirm that the loan meets seasoning rules
- Calculate the true monthly savings
- Divide applicable costs by the monthly savings
- Make sure the refinance supports your actual goal
The bottom line
A lower rate does not automatically make a refinance a good deal. I will walk through the payment, costs, break-even point, and long-term savings so you can see whether the numbers truly make sense.
Your next step
Let’s talk about what this means for you.
You do not have to figure out every mortgage detail on your own. Tell me the goal and we can work through the questions.
Ask Marta a question