Frequently Asked Questions
“No Cost VA Loans” is a NMLS licensed and VA approved lending company, headquartered in Honolulu.
We service veterans under the “NoCostVALoans .com” branding, while serving other markets as “Best Mortgage Rate .com”.
Both licensed trade names are under our parent company, “American Mortgage and Insurance Inc.”.
This is also the name which will appear on official loan documentation and credit report inquiries (see the “credit report” question in this FAQ)
More information about us, and our C.E.O. Jonathan Kutsmeda, can be found on our company websites, and throughout the internet, including social media.
You can also locate our licensing information on the Nationwide Mortgage Licensing System database, via their consumer access portal by searching for our NMLS# 375788.
You should immediately discredit anyone who tries to sell you on the gimmick of “skipping payments”.
There is no such thing as skipping payments, and you will always need to account for every day of interest while you maintain an outstanding balance.
However, you do have the option to DEFER your next payment date until the following month, but deferring payments is merely the financing of accrued interest.
If you choose to not make the current month’s payment, and you also defer the first payment date on the new loan, then you will have deferred two payments out of pocket. (see the example provided below)
Delaying your first payment date also means delaying the next time you will be eligible to refinance, because VA loans have a seasoning requirement of 210-days from the FIRST PAYMENT DATE (not from the date you close).
You can choose to take this approach if it provides some temporary payment relief, but just be aware of what you are actually doing.
You are NOT skipping payments, you are merely financing interest into the loan.
We recommend our clients try to minimize unnecessary interest costs, especially if it results in adding to the loan balance.
Therefore, we suggest that you avoid lenders who use these types of marketing tactics, as they are only looking to persuade you into a loan and have no regard for the negative long-term effects.
If they are willing to use this type of ambiguous word play in a printed advertisement, who knows what other tricks they will try to pull on you during the loan process.
EXAMPLE OF PAYMENT DEFERMENT
When you make a mortgage payment, you actually pay interest in arrears, or backward looking.
This means an August 1 payment is actually paying all of the interest which accrued in July.
It is also important to realize that your current principal balance is NOT your FINAL PAYOFF.
This is because of accrued interest.
If you request a payoff good through an August 1 date, and you have not yet made your payment, then your payoff would also include all of the outstanding accrued interest from July.
If you decide that you want to DEFER two-payments (no such thing as skipping) then you would be financing two months of accrued interest.
When you close a new mortgage the first payment date will always begin on the 1st of a new month regardless of when you closed in the previous month.
It is not until that new mortgage has accrued a month of interest that you actually make your first payment.
For example, if your new loan closes August 10, the new billing cycle would not start until September 1st.
You would not make your first payment until October 1st, once a full month of interest has accrued.
Therefore, if you didn’t make your payment on August 1st, and the next payment isn’t made out-of-pocket until October 1st, then you have deferred two payments (August and September).
However, all of the interest from July and August will be financed into the loan (assuming the property has enough equity).
Lastly, the interest accrued in the first month of your new mortgage, in this case September, will be paid when you make your first out-of-pocket payment in October.
The answer is Yes, and No.
For the VA “I.R.R.R.L. Streamline” you can still refinance even if presently you do not occupy the property.
However, the VA “Cash-Out” loan is for owner-occupied properties only.
When you start the LOAN APPLICATION you will be sent to our partner site BestMortgageRate.com to begin the process.
I explain in the “Who is” section above about our connection to Best Mortgage Rate. Please read that section if you have not already.
The first step is to create an account, which you do by clicking the “Create Account” button at the bottom of the sign-in page.
Please make sure you SAVE YOUR PASSWORD and USERNAME somewhere where you will not lose it.
Do NOT write it down on the back of an envelope or on a sticky note where it will get lost.
Please write it down with your other passwords, or somewhere where it will not be misplaced. THANK YOU!
After you create a user, you need to confirm your email address before you can sign-in.
Check the email you used to create your account. You will receive a link to verify your email and activate your account.
REMINDER: Please make sure you SAVE YOUR PASSWORD and USERNAME somewhere where you will not lose it.
Once your account is created and your email is confirmed, you can now sign into the LOAN PORTAL.
Once signed in your will see a section with tasks for you to complete.
At this point in the process there will only be one task that reads “DRAFT” in the top right and has a RESUME button.
This is how you begin the loan application within the encrypted loan portal.
The application is easy to complete and user friendly, with simple step-by-step forms.
When completing the application please be sure to accept the E-CONSENT.
This will allow us to send you loan-related disclosures digitally that you can read online and e-sign.
You will still be able to print any item you like, but e-consent allows you to receive, and digitally approve, certain critical disclosures.
As the loan process moves forward you will see NEW TASKS in this section of the loan portal.
Tasks, including disclosures that require a HAND-SIGNATURE, will be posted here.
This is also where you will eventually UPLOAD the required documentation for loan approval.
You will be NOTIFIED BY EMAIL when a new task, or document request, has been added.
We recommend that you double-check this section once in a while to make sure there is nothing outstanding, but we will do our best to send notifications and reminders.
Being proactive is encouraged, as it will help your loan get approved faster and with less effort.
If you complete an online application, then you are authorizing us to retrieve a credit report.
If you are only interested in receiving an upfront quote, then do not submit a loan application.
However, even for a rate quote we may ask that you complete the application and authorize a credit report check so that we can provide an accurate quote based on your credit history.
When a credit report is ordered it will show on your credit history as an inquiry from either “American Mortgage and Insurance Inc” (our parent company) or “Corelogic Credco” (a national credit vendor that compiles and generates the report)
To avoid multiple credit inquiries please REMOVE ANY FREEZE that you have on your credit report. Please do this for all credit bureaus, including Transunion, Equifax, and Experian.
THE IMPACT ON YOUR CREDIT SCORE
We understand some people are extra-sensitive about their credit scores. but a mortgage company completing a credit check will have very little impact on your score.
Only when you have multiple inquiries from DIFFERENT types of creditors, will inquiries have a harmful effect.
This is because the credit scoring algorithms that generate your scores cannot determine if you’ve obtained multiple lines of the new credit, and therefore cannot determine accurately if you are now a greater credit risk.
However, one credit pull, from one type of creditor (a mortgage company), does little to your score if anything at all.
Afterall, the point of good credit is to be able to receive better credit terms.
The algorithm knows that a one-off inquiry is not a concern, therefore your score is not harmed.
Even multiple inquiries from the same type of creditor (mortgage lenders) will not have a big effect if they occur within approximately 30-days of each other.
Again, the algorithm determines that you might be looking for one type of credit, and therefore you are likely shopping among different lenders.
As a mortgage company we respect people’s concerns about their credit score, so we suggest completing an application only once you are comfortable with the reality that a credit report will need to occur, and that a single type of creditor checking your credit will not have a meaningful impact on your scores.
The things that are permanent and should be the real focus of a borrower’s attention, are their payment history and the ratio of balances to the credit limits.
Visit the Loan Portal page where you will be asked to provide your log in credentials.
Underneath the blue “Log In” button you will see where you can click to reset either your username or password.
You will receive a "YOUR DISCLOSURES ARE READY" email from either your loan officer or the Loan Support team shortly after completing an application.
In that email you will receive instructions regarding your personal “Authorization Code” for accessing secured documentation in the loan portal.
Please locate that email to determine your authorization code.
The “Mortgage NOTE” is one of the most important documents in a loan package.
The “NOTE” will outline the terms of your loan, including:
- Note date
- Interest rate (Note rate)
- Principal loan amount
- Principal and interest payment
- First payment date
- Last payment date
The Note is typically 1 – 5 pages and can be located in the document package you received at the time of your most recent loan closing.
Since it is an important document, it is usually in the beginning of the loan package.
It is required that you provide a copy of ALL PAGES.
You can see an EXAMPLE of a Note by clicking HERE.
It is required that we use an independent third-party escrow company to handle the distribution of funds.
This ensures that there is no fraud and all money is handled securely.
There will also be a company that provides Title insurance. In some states, like Hawaii, this is usually the same company that is providing the escrow services.
They will reach out to you, either via email or direct mail, to request additional information.
We will do our best to provide you the name of the Escrow and Title companies in advance so that you are prepared when they begin communicating with you.
If there is any doubt about who is requesting information from you, contact us immediately to confirm.
This is entirely up to you.
We created systems and processes to make this experience relatively seamless.
Those who cooperate with these systems, such as reading this FAQ section, will be rewarded with a faster closing.
The fact that you are reading this shows that you are someone who takes initiative; we hope to see that continue throughout the entire loan process.
One particular part that needs extra cooperation is your closing date.
Prior to closing we will need to pre-schedule your closing date. This is necessary for preparing your closing documents with date specific information.
Please make every effort possible to make that closing.
Because certain documents need to be notarized you cannot simply sign on a different day if you miss your closing appointment.
We would need to create a new document set, with new compliance sensitive dates.
Creating a new set of closing documents is more time consuming and arduous than you might imagine, so please be sure to make it to your pre-scheduled closing.
Thank you in advance for all your hard work and cooperation.