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Refinance Rapid City

Oftentimes, your financial situation changes years down the road after you bought a home. For this reason, many people will refinance their homes to replace their existing mortgage with a new loan. Refinancing your home under those conditions can help lower monthly payments or the interest rate, or switch the loan from adjustable to fixed-rate. Others may renaissance so that they can access cash to pay off debt or complete renovations. 

No matter what your goal or reason is, the process of refinancing is very similar to applying for your initial mortgage. To ensure the refinancing process is smooth and you get the best possible outcome, work with an Affiliated Mortgage professional. 

Using the helpful infographic below, we break down the key step of refinancing.

VA Loans

VA loans are a special mortgage option that is guaranteed by the Department of Veteran Affairs. Unlike other loans, the VA loan is $0 down and since it is backed, the lender can offer more favorable terms. VA loans help many veterans, military personnel, and spouses secure a home. 

How do VA loans work?

VA mortgages work a bit differently than a conventional loan. The Department of Veteran Affairs (VA) backs a portion of each loan, which provides private lenders the ability to offer low to no down payment options. In terms of the process, acquiring a VA loan is very similar to other loans.

Who is eligible for a VA loan?

Only certain people are eligible for a VA loan, as these loans are designed to help veterans, and in some cases their spouses. You must have a proof of service document to demonstrate your status. The eligibility requirements include:

  • 90 consecutive days of active duty during wartime
  • 181 days of active service during peacetime
  • 6 years of service in Reserves or National Guard
  • The spouse of a service member who dies in the line of duty or due to a service-related disability. 

What are the requirements for a VA loan?

As with any loan, there are some basic requirements applicants must meet. You must prequalify for the loan based on your finances, and then get preapproved. Essentially, you must have good credit and substantial funds for payment. 

Are you a good fit for a VA loan?

VA loans are created to fit the needs of Veterans and other military personnel. If you mee the qualifications above, then a VA loan may be right for you. Let us help you with your VA Loan. The Affiliated Mortgage family is proud to support and serve our veterans, active duty military, and their families. Contact one of our VA Loan officers to see determine if a VA loan is right for you.

Learn How The Refinance Process Works And The Types Of Refinance Option We Have For You

Refinance application Time est: 30 min
Get Pre Qualify
Get a pre approval. Time Est: 2-24 hours
Discover your best loan fit with your loan officer. Time Est: 30 minutes
1 Conventional
2 FHA Loans
3 VA loans
4 USDA Loans

Technically speaking, a conventional loan is any mortgage that is not guaranteed or insured by the US government, such as VA, FHA and USDA. Conventional loans offer 2 main refinance types: rate and term refinance and cash out refinance. The rate and term refinance is designed to rewrite a new mortgage at an amount to pay off the existing loan and enough to pay closing costs if desired to add them in. Normally the client will take advantage of lower rates or a shorter-term mortgage with this type of loan. In a cash out refinance the client will be looking to access some of the equity in the property. The equity is commonly used to debt consolidation, buy additional properties, investments, gifts to family members, or whatever reason the clients needs access to equity.

FHA loans typically offer options clients with less than perfect credit situations, higher debt to income ratios or need access to more equity in the home than what a conventional loan would offer. If you are looking to just rewrite the mortgage you have at a lower rate, FHA allows you to do this with very little equity in the property (ie. You don’t need to have much equity in the house to qualify for a mortgage). Because FHA loans are insured, lenders can and do offer FHA loans at attractive interest rates and with more flexible qualification criteria. If you are interested in refinancing a home that requires some improvements, there is an FHA loan to address your needs.

VA Loans in South Dakota and Wyoming (why are we mentioning these states?) are made to fit the unique needs of Veterans, current military personnel, and in some cases, spouses of veterans or current military personnel. A VA Mortgage differs to some degree from a standard mortgage. While provided through Affiliated Mortgage, the loan is guaranteed in part by the Department of Veterans affairs. Those eligible for VA loans for a refinance have access to more lending power than any other program. VA is unique as they allow the borrower to rewrite their mortgage note up to 100% of the new appraised value. This give this loan substantial advantages to help clients access equity in the property. VA also offers an Interest Rate Reduction Loan Option also referred to as an IRRL or streamline refinance. This loan is designed to rewrite an existing VA loan at a lower rate or at a lower term (from a 30 year to a 15 year note). This loan is normally accomplished with little documentation and doesn’t require an appraisal. . There are a few special considerations for a VA Loan: good credit and enough funds for payment are among them.

USDA Loans, commonly referred to as Rural Development loans have refinance options to rewrite an existing RD loan into a new RD loan. This is another option for a streamline refinance. properties are not eligible.

Documentation. Est time: 7 days.

a- Your loan officer prepares your loan documents for signatures.

b- A full loan package is submitted for processing.

Appraisal (2 Weeks).

A licensed appraiser will conduct a review of your new home’s value, make sure that there is sufficient collateral to support the mortgage and that the house is in adequate condition for the loan

Processing Time est: 5 days.

Affiliated mortgage’s processing team will double-check your documents and make sure your file is complete. At this time a conditional loan approval is issued.

underwriting (2 Weeks).

a- An underwriter at Affiliated Mortgage will confirm all documents provided satisfy loan requirements.

b- The underwriting may request additional documentation.

c- The underwriter will issue an approval, allowing the loan to close.

Clear To Close Time Est: 3 days

a- The title company and Affiliated Mortgage will collect all the invoices for the services provided during the refinance process.

b- The title company then takes the money funded by Affiliated Mortgage and pays out all outstanding balances. The title company will get a payoff for any mortgages getting paid off from the new mortgage and make sure they get satisfied.

CONGRATULATIONS! YOU ARE A HOMEOWNER

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