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The Donut Hunter

Relocating to a new state is a lot of work – moving house, setting up utilities, changing your insurance, house hunting, getting a new driver’s license and license plates, and all the things you have to do take up a lot of time and energy.

But some things about moving can be fun. For example, my wife and I have enjoyed seeking out places for entertainment, such as local parks, classes and events through the park services board, our new library, and more importantly, finding the best local restaurants and donut shops.

My wife and I don’t go out to eat frequently, but when we do, we like to go to a nice restaurant and enjoy a good meal. We prefer to replace quantity with quality. The same thing goes for donuts. We don’t eat them very frequently, but when we do, we want them to be good. You can get Krispy Kreme and Dunkin’ Donuts anywhere, and to be honest, they are only “OK.” But in my experience, you can’t beat the local donut shops.

So far we’ve tried two donut shops and we have a couple still left on our list to try. The restaurant list is practically endless – our local area has dozens of one of a kind restaurants, and seemingly hundreds of various chain restaurants. We only go out to restaurants once a twice a month, so we have a couple years worth or restaurants to try.

Here are some recommended articles from around the web:

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Can I Collect Unemployment Benefits While Using the GI Bill?

Can you attend school on the GI Bill and still receive unemployment benefits? This is a common question many people ask when they are planning on using the GI Bill to pay for their college education. Whether you are still in the planning stages of your retirement or separation from active duty, or you are taking the opportunity to go back to school after entering the workforce and subsequent unemployment, the answer is the same – yes, you can use the GI Bill while you are receiving unemployment benefits. However, you will need to be aware of how unemployment benefits work in your state to ensure you remain eligible to continue receiving unemployment benefits.

Can I Collect Unemployment Benefits While Using the GI Bill?

Let’s take a look at a recent question we received, and how this might apply to this specific situation. Keep in mind that unemployment benefit rules vary by state, so you should contact your state employment bureau for information specific to your situation.

Q: I am a US Marine and have some questions about the unemployment benefits. My EAS date is on December 16th this year. I am planning to go back to school after the military. I will try to pursue my bachelor in 3 years. In this case, I intend not to work so I can just focus on school. Will I be able to receive the unemployment benefit if I do this? I’m talking about 3 years of unemployment benefits, while attending school. Hope you will be able to answer this. thank you.

A: Leo, thanks for your service, and best of luck pursuing your education. It is a great benefit to be able to claim unemployment benefits after military separation. I recommend that everyone file for unemployment benefits immediately after they separate from military service. But there is something that you should know about unemployment benefits – they aren’t a free ride. Unemployment exists to help people bridge the gap between jobs. In most cases, states require people receiving unemployment benefits to be actively seeking employment in order to receive benefits.

What does this mean for you? Unemployment benefits are sponsored by the U.S. Department of Labor, but individual states are responsible for setting rules and requirements. When I claimed unemployment benefits from Texas after I separated from the military I had to keep track of my job search efforts. Each week I had to call the Texas Workforce Commission to receive my unemployment check and I had to verify (via an automated phone system) that I was actively seeking employment. It’s been several years since I did this, but I believe I had to state how many job applications I sent in, how many interviews I had, etc. Keep in mind that rules and systems change and can vary from state to state.

Unemployment benefits are limited in duration

In addition, there are time limits for how long one can claim unemployment benefits. Most states offer around 26 weeks of unemployment insurance benefits, but there are federal extensions which may allow you to extend the receipt of unemployment benefits by up to 20 weeks or so. Some states with exceptionally high unemployment rates may have additional extensions. So you may be eligible to receive close to a year of unemployment benefits, depending on your specific situation. Again, this may vary by state and possibly on other circumstances, so be sure to contact your state employment agency for information specific to your situation.

You may be able to receive unemployment benefits and go to school

That doesn’t mean you can’t go to school – far from it. But you need to be able to prove to your state that you still qualify for the unemployment benefits while you are attending school. For some states that may mean you need to show that you are seeking work. There is one more consideration – some states do not allow students to receive unemployment benefits. If you are in a state which does not allow students to receive unemployment benefits, you may not be able to receive unemployment benefits while receiving GI Bill benefits.

So the best way to answer your question is to say you may be able to receive unemployment benefits while using the GI Bill, but you probably won’t be able to claim 3 years of unemployment benefits while you are going to school. However, the good news is that the Post-9/11 GI Bill benefits should pay for the majority of your tuition, and some of your housing costs as well, hopefully making it more affordable to go to school.

New GI Bill Program for Unemployed Veterans

The recently passed VOW to Hire Heroes Act of 2011 created a new program that would provide GI Bill for Unemployed Veterans, even if they had exhausted their GI Bill benefits, or if their GI Bill benefits had already expired. This program will provide up to 12 months of benefits for eligible veterans at the full-time active duty MGIB rate. This program is only open to unemployed veterans age 35-60. Eligible training includes VA Approved training and courses at a community college or tech school. The courses must lead toward an Associate’s Degree, approved certification, or non-college degree in a high demand occupation. Some examples of approved programs include trucking, information technology, some medical fields, and more.

Best of luck with your degree and thanks for your service!

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USAA iPad Application Review

I‘ve said it many times before – I’m a big fan of USAA. They run a top notch financial institution and they have the best customer service I’ve ever run across. In addition to running a tight ship, USAA gets best in class awards for their innovative products. USAA constantly pushes the boundaries of what banks and other financial institutions can do, and they constantly set new standards in the industry. A prime example of this is the ability for customers to scan a check to deposit it (since copied by several other financial institutions, but it took them months to catch up). Other examples include USAA Auto Circle and USAA Home Circle.

And USAA has done it again.

USAA Introduces an iPad Application

Sure, you say. Anyone can make an iPad application. Simply take your iPhone app and make it bigger. And you’re right. Anyone can do that. But USAA chose not to do that, and instead created an iPad app from the ground up.

USAA iPad Features

The USAA iPad app gives users access to a full service banking application. From the interface, users can view and access their bank accounts, investment portfolio, and insurance policies which are held with the company. You can transfer money to various accounts, use your online bill pay to pay bills, make investments, or set up a new insurance policy with a couple taps of your fingers. You can even access real-time stock quotes and make trades, which is a nice feature if you are an active investor.

The USAA iPad app also features an information section which features articles, stories, and interviews with USAA financial planners. The topics cover a wide variety of topics, from investing to insurance, to buying a house. Other articles can help you manage debt, improve your credit score and help you decide how to handle your next major life event, such as planning your life insurance needs, buying a house, planning for retirement, etc. The articles are updated frequently, so you will always have new information available at your fingertips.

USAA iPad App Interface

Like the USAA website, you will need to login through the secure connection, then enter your PIN before you can access any accounts or make any financial transactions or change any insurance policies.

USAA iPad App Screenshot

The above screenshot is an example of how you can see your various USAA accounts in one place – from saving and checking accounts to investments to insurance policies. Each folder (which looks like a leather bound binder) represents a different account, and you simply need to click on the folder to access the account and begin your banking activities. The interface is intuitive and easy to use. The screen can be read from a vertical or horizontal position and the way you hold it will determine the amount of information you will be able to see (just try it out; it’s a nice feature). Overall, the app is beautifully designed and easy to use – exactly what anyone would want.

Improvements I would like to see with the USAA iPad App

The only issue I had from a technical perspective was when I was reading an article and wanted to change from a horizontal to a vertical reading position (and vice versa). In a couple instances, changing the positions of the screen caused the article to jump to a different page in the article – in this instance, it was from page 7 to 11, so that was a big difference. It happened a few times in a row, so it may just be a bug that needs to be worked out by the tech team.

The other thing I would improve is the ability to change auto insurance policies through the app For example, my wife and I just relocated to a new state. I logged into the app and accessed my auto policies with the intent to try and move them to the new location. Unfortunately, I could apply for a new auto policy, but I couldn’t move one. I decided against inputting my updated address, VINs for two vehicles, and the other requested information and instead handled the transaction over the phone, which only took a few minutes since the USAA customer service rep only had to change my location and didn’t need to add much else. (there could be a reason for this that I am not aware, such as state laws or other insurance regulations; I’m not an expert in the insurance industry).

Verdict – The USAA iPad Application is a Win

If you are a USAA customer and you have an iPad, then I highly recommend downloading this app. It’s free and incredibly beautiful, easy to use, and most importantly, useful.

Where to get the USAA iPad App. Download it from the Apple App Store, or directly from USAA.com.

*Disclaimer: USAA.com was kind enough to provide me with an Apple iPad to use for 30 days in order to review the USAA iPad App, on the condition that the review be my honest opinion of the service – good, bad, or indifferent, and that the iPad be returned after the review period. We were not compensated in any way for this review.

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Should You Hire a Tax Pro?

One of the most common questions I hear this time of year is should I hire a tax professional or do my taxes myself? Preparing your own tax return can be a time-consuming and hair-pulling experience. This is why so many people turn to the tax professionals, including me. But a good tax accountant can save you more than brain cells–they can save you money by claiming tax deductions and credits that you may not even know exist.

Should You Hire a Tax Pro?

Tax help is available

So, where do you go for tax help? You can choose between tax preparers, national tax franchises, independent tax firms, CPAs, enrolled agents, and tax attorneys, for example. Here’s an overview of each type of tax professional, so you can determine which one may be best for your situation:

Should You Use a Tax Preparer?

A tax preparer is someone who’s willing to help you complete your tax return for a fee. Anyone can run an ad or print a business card and call themselves a tax preparer. They may or may not have any specialized tax education or experience. So it’s critical that you make sure someone who claims to be a tax preparer is truly qualified or comes highly recommended. Never work with an unknown tax preparer if your tax situation is at all complex due to ownership of a small business, rental property, investments in the stock market, or working outside of the U.S., for example.

Should You Use a Tax Franchise?

The national tax franchises–such as H&R Block or Jackson Hewitt–have thousands of offices in the U.S. They employ tax professionals with varying levels of education and experience. Here’s a tip for working with a tax franchise: Always request to work with the most senior tax preparer in their office. It won’t cost you any more, but should result in you getting to work with a more seasoned professional. If your tax circumstances are somewhat complicated, be sure to ask if they can provide the specialization that you need.

Should You Use an Independent Tax Firm?

Independent tax firms are locally owned accounting businesses that work with individuals and companies. They usually have accountants on staff with a range of tax specialization and experience. If you have a fairly complex tax situation, a local firm may be your best option. In my experience, independent firms can get to know your individual needs and offer a high level of consulting and customer service.

Should You Use a CPA?

Certified public accountants, or CPAs, are professional accountants licensed by the state where they work. They must pass a rigorous exam and usually go on to specialize in a certain area such as business consulting or corporate accounting. They can even represent you before the IRS; but not all CPAs handle tax issues. The American Institute of Certified Public Accountants website at aicpa.org has more information about this profession. You may find CPAs that specialize in taxes at a tax franchise office or at an independent firm.

Should You Use an Enrolled Agent?

Enrolled agents are another type of licensed tax professional. Like CPAs and attorneys, they can represent taxpayers before the IRS in the event of an audit or dispute. They must pass a rigorous exam and are qualified to prepare tax returns for individuals and businesses. They must complete continuing education and adhere to a code of professional conduct. They may work for a tax franchise office or an independent tax firm. You can learn more at naea.org, the website for the National Association of Enrolled Agents.

Should You Use a Tax Attorney?

Tax attorneys are lawyers who have chosen to work exclusively in tax law. They’ve been admitted to their state bar by passing a licensing exam. Tax attorneys are needed for complex legal matters such as disputes that go before the U.S. Tax Court. In special cases they may prepare or assist with extremely complicated tax returns for businesses or individuals.

Questions To Ask a Tax Professional

Before you enlist the services of a tax pro, be sure you fully understand how qualified they are to handle your specific needs. Be sure to read chapter 10 of my new book, Money Girl’s Smart Moves to Grow Rich, for more information about taxes and choosing a pro. Here are eight basic questions you should ask to get to know the company and your preparer’s level of experience:

  1. How long have you or your firm prepared tax returns for clients?
  2. Who would actually be preparing my tax return?
  3. What licenses and experience would my tax preparer have?
  4. How do you charge for your services?
  5. Do you specialize in any certain tax issues?
  6. When could I expect to have my tax return completed?
  7. What’s your policy for doing return amendments if changes or corrections are needed in the future?
  8. How do you help me if I’m questioned or audited by the IRS?

If a tax preparer won’t sufficiently answer your questions, keep searching for one that makes you feel comfortable. The best tax professionals should also ask you questions to determine if you’re qualified for specific deductions and tax credits to lower your tax bill.

The fee you pay for professional tax help usually depends on the complexity of your return. Some professionals charge by the number of tax forms you require, some charge by the hour, and some bill a flat fee. The bill for one of my tax returns for a simple LLC with a single rental property has been as high as $875 with a large firm and as little as $200 with a local CPA–so don’t be afraid to shop around!

Here are some red flags to watch out for:

  • a firm or individual who wants to charge you based on how much refund you’ll receive
  • being asked to sign a blank tax return form
  • a recommendation that your tax refund be sent somewhere besides directly to your bank account

How to Do a Background Check on a Tax Preparer

After your interview with a potential tax professional, you can do a background check to verify their licensing status and uncover any disciplinary action taken against them. Your state’s board of accountancy will provide information about CPAs. The IRS list of disciplinary actions reveals suspensions, disbarments, and censure taken against CPAs, enrolled agents, and attorneys. And the American Bar Association offers a directory of lawyer disciplinary agencies by state.

How to Choose a Tax Professional

You probably know that you have until April 18 to file taxes this year. If you haven’t started, now’s the time to begin gathering your information and to decide who’s going to do your taxes. If your tax return should be uncomplicated, a qualified tax preparer or tax franchise office may be a fast and inexpensive option for you. But if your tax return has any degree of complexity, they may not have the expertise to maximize potential deductions. Use a CPA or an enrolled agent to manage a complicated situation and help lower your tax liability.

Always consider whether anyone who prepares your tax return will be in business in the future if you need their help to explain information on your return to the IRS. Whether you choose to prepare your own return or hire someone to do it for you, remember that the person ultimately responsible for its accuracy is you! When you sign or submit your return, you are responsible for the accuracy of the information. That’s the law—even when the return is prepared by someone else or with the help of tax software.

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Hooter’s President’s Day Military Discount

Good news for people who love Hooter’s restaurants. Hooter’s just announced they are supporting a Public Safety Appreciation Day this President’s Day in which they will be offering a free meal on to all active duty military personnel and all Public Safety workers (defined as Firefighters, EMT, and Law Enforcement).

You must be able to present a valid ID, Proof of Service, or be in uniform to receive the free food (1/2 pound burger or a chicken sandwich with a drink purchase). This offer is only available for dine-in eating and only on 2/21/2011. Here is the website with more details!  www.hooterspresidentsday.com.

Hooter's Public Safety Appreciation Day

Hooter's Public Safety Appreciation Day

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Here are some recent articles from around the web. I hope you enjoy!

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Is It Practical to Live Life Without Debt?

One of the consequences of the recession is that more people are considering their finances, and, in many cases, deciding that it is a good idea to get out of debt. And to never use debt again. Living a life completely without might be a noble idea, but is it practical? In a lot of ways, living so that you never have debt at all is impractical.

Making Big Purchases

One of the biggest reasons that it is difficult to live a life that is completely debt free has to do with large purchases. There is a compelling argument as to why you can pay for a car entirely with cash, and no need to get a loan. After all, it is possible to find cars for less than $10,000. Even cards more expensive than that can be saved up for within a couple of years. Some purchases, though, are just too big.

Consider a home. How many people have $180,000 just sitting around? Saving up to buy a home with cash is likely to take decades, rather than mere years. Of course, if you prefer renting (and many people do), there is no need to go into debt for your housing. If you aren’t planning on buying a home, and you can save up for a car or use public transportation, living a debt free live really does become more practical.

Another issue is education. The cost of a college education continues to rise to almost prohibitive. Scholarships are scarce, and it can be difficult for students to hold down the kind of job that will pay their college costs. Of course, starting early and saving for college can help with this problem, creating a situation in which it is possible for college expenses to be covered by what has been saved up. The situation, though, can become complicated if you have more than one child. Saving up for three children may not as feasible as saving up for only one.

It is possible, with a great deal of planning, to live completely debt free. However, it may means giving some things up. For many people, it is worth the trade off to pay interest if it allows them to buy a home, get a car a little sooner, or send their kids to college.

What About Your Credit Score?

The other issue, of course, is that of building credit. Our society has become quite dependent on credit scoring and credit history. Without debt, it is very difficult to build up a credit history. But, if you plan to live completely debt free, never borrowing, does it matter if you can’t get a loan or a good rate on a loan? While it may not matter in terms of borrowing, it is important to realize that your credit history influences insurance rates, security deposits, whether or not a landlord will rent to you, and can even affect whether or not you get a job.

There are alternative measures of credit worthiness that include rent payments and utility payments, but you usually have to convince someone to report those positive actions, and the insurance company may not actually use the alternative scoring model when making its decision.

In the end, it’s all about what works best in your situation. Many find, though, that it is more practical to obtain debt they can handle, and then pay it off as quickly as possible, in order to allow them a little more flexibility in today’s financial world.

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What To Do If You Do Not Have The Investing Gene

Many people who love investing, eat and breathe it. They read everything that they can get their hands on about the subject. They can easily explain the difference between Price To Book Ratio and P/E Ratio. But, there are some people in the world who just do not understand or even want to understand the world of investing. I have found that many times there is not much of a middle road. Most people fall into one of two categories – those who love thinking about investing and planning their next investment, and those who are not interested in the subject at all.

It Is Okay If You Hate Investing

Investing is not something that everyone loves, and that is okay. My wife hates anything that remotely resembles math, and so she leaves all of the investing decision making to me. Of course, I talk to her about it and give her a quasi-report of how we are doing on a regular basis. Even though it is okay not to like the subject of investing, it is a subject everyone must address as quickly as possible if they want to retire with a decent standard of living. If you fall into the group of people who dislike investing, then you need to get some help to insure that you are doing some form of retirement planning and investing for your future financial goals.

Partner Up If You Don’t Have A Knack For Investing

Many people have had the luxury of marrying someone who fits them well. I truly believe that opposites attract. The old adage is very true. My wife is very different from me. And, although we enjoy many of the same things, we complement each other quite well. Like I said, she hates investing, but I love it. Hopefully, there is at least one member of a relationship that will take the lead on the financial side of the house. Just be sure to keep the other involved and informed. If you do not have a spouse or someone in your life who wants to help handle investing, then you may need to find professional help.

Think About Hiring Professional Help

Everyone should be investing for retirement. The sooner you start investing will enable you to retire sooner and with a larger nest egg. But, if you neither spouse wants to handle the investing responsibilities, you may want to consider hiring professional help. A fee only certified financial planner can be a great addition to your household team and is someone who can help you navigate the investing waters.

Be sure to conduct a thorough background check and interview any financial planner you choose. There are several websites available that can help you such. If your financial planner is a registered representative you can check his or her background at www.finra.org. Or, you can also check www.sec.gov for background on many stockbrokers to find out if they have been reported for any wrongdoing. But, the best place to check out a certified financial planner you are considering hiring is the Certified Financial Planner Board of Standards.

Not everyone is cut out for investing, and it is okay not to have the investing gene. But, you need to identify this deficiency in your household as quickly as possible and find a way to start investing. If no one feels comfortable with this role, then you should seek professional help.

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The National Guard Experience

If you have ever wondered what the National Guard does, then you should take a few minutes to look at their new online tool from Epic, which allows you to create a custom music video set to footage from National Guard experiences.

Create a Custom National Guard Experience Music Video:

1. Choose a theme for your video:

The National Guard remix gives you 3 choices for the theme of your Erpic video – operations, Bootstraps, & Relief. Operations is just what it sounds like – the video footage features National Guardsmen in the thick of operational duties. Bootstraps focuses on the experience of bootcamp and initial military training. I went through Basic Military Training in the USAF, but this video sequence brought back a lot of memories! The third theme is Relief, which is one of hte major focuses of National Guard work – bringing aid and relief to Americans in response to naturual disasters and other events. These videos will give you a better idea of what it is National Guardsmen and women actually do on a day to fday basis.

2. Choose music soundtrack

The next step is to choose your soundtrack – you can select from Rock, country, Pop, and hip hop. You can randomize your selection, or go with the one that fits your personality the best.

3. customize video focus

Next up is customizing the focus of your video. You will have a few choices to select from, which will vary depending on which theme you chose. For example, I chose relief the first time I made a video and I was given three options to focus on: Wind, water, and fire, which represent three major types of emergencies the National Guard might respond to (hurricanes and other storms, floods, and wildfires). The operations video lets you choose from aviation, troops, and tanks, and the Bootstraps video gives you option of choosing from medical, aviation, and communication. The video is raw and real – it gave me a feeling of respect and admiration of what our National Guard does for us on a daily basis.

4. Mix soundtrack and add effects

This is where the fun comes in – you can mix your video with different sound effects and volume levels for the soundtrack you selected. For example, you can increase the bass and certain instruments, add shouting and sound effects, add sound effect transitions in the video, and more. The only thing I would add is the ability to make the transitions on the fly (you have to start over at the beginning each time you make a change). But it’s still a cool tool for creating a video.

5. Connect to FaceBook and share with friends and family

You have the option of connecting the video and your FaceBook account and sharing with your friends and family, or you can choose to manually share the video with whomever you wish. You can see my video experience here. Unfortunately, you don’t get the code to upload it to your own site, so you can only share it with a link, or via FaceBook and social media.

One thing I should mention - if you use your real name and location, it will show up in the video (which is a really cool effect!).

If you want to skip the customization, then check out this video from last year’s promotion: Moments of Pride, which also allows you to input your name and location, but doesn’t require as much work in selecting your theme, topic, music, etc. The video is a strong reminder of what our Guard does for us on a regular basis.

For more information about the National Guard call 1-800-GO-GUARD, or visit your local recruiting station.

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Your Actions Show Your Financial Priorities

Your actions show what is important to you in life, and your financial life is no different. Whatever you think is important, whether consciously or subconsciously, that is what you will spend your money on. We can say we value investing or saving for the future all we want, but if we do not put those words into action then they are just wasted and mean nothing. Looking at how we actually spend our money can be an eye opening experience to your financial priorities.

What You Need to Know About Setting Financial Priorities

Your Checkbook Register Reveals The Truth

Your checkbook register tells the tale of the flow of money through your household. What do you spend your money on? Maybe a checkbook resister is not the correct document, maybe we need to just look at bank statements. But, either one will reveal what our financial priorities are. Of course, we will all have the normal fixed expenses of mortgage or rent payments, car loan payments, insurance premiums, and the like. The variable costs that change every month show our true feelings about money. Do you like to spend your money going out to eat every week? Do you leak money out of your monthly budget by trips to the coffee shop? What does your checkbook register or bank statement say about where your money goes and what you subsequently value?

What You Value Subconsciously

We all say that we put a priority on financial goals such as saving for retirement, paying off our homes early, or sending our children to college without saddling them with too much student loan debt. But, do we really value that? Many financial planners recommend saving 15% of your income towards retirement. Are you at that level yet? Are you needlessly wasting money on frivolous things without realizing it when you could be allocating that money to a better use? Many people do not even realize how much money we waste on everyday purchases. Paying with cash also has a way of having money disappear rapidly without a trace. It is not that we rob our retirement accounts or child’s college fund on purpose. We often do not realize that we short change portions of our financial goals for immediate gratification. It is only through looking at the tale of the bank statements that we really find the truth out about our spending habits.

What You Can Do To Set Your Financial Priorities

The first thing that you need to do if you haven’t already is to identify what your priorities are in the first place. What are your financial goals? Do you want to send your children to college and pay their entire tuition bill? Or, do you want to retire from the military after twenty years of service and not work another day in your life? Both of those financial priorities are doable if you plan. You need to have a written monthly budget that dictates where every dollar will go. This will help prevent those sneaky ones leaking out and not being allocated towards your financial priorities.

We do not set out to miss our financial priorities or goals. Many times we minimize our financial priorities without even realizing what we are doing. You can get your financial priorities back in order by focusing on them and ensuring that they are receiving the attention that they deserve. Actions speak louder than words in all things including our financial lives. Make sure that your actions reflect your priorities with money.

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What Credit Score is Needed to Refinance a VA Loan?

Many military veterans are considering refinancing their VA Loan due to mortgage rates being near historic lows. There are several benefits to refinancing your VA Loan, including a lower monthly payment, better terms, and potentially being able to pay off your VA Loan more quickly. Your credit score is one of the most important factors to consider when you apply to refinance your VA Loan, but it isn’t the only factor. Let’s take a look at what lenders look at when you apply to refinance your VA Loan.

What Credit Score do You Need to Refinance a VA Loan?

The first question that often comes to mind when considering a VA Loan refinance is what credit score is needed to qualify for the loan. This is an important factor to consider, but it isn’t the only factor you need to look at. Most mortgage lenders also take other factors into consideration when approving a refinance application. Some of these factors include your debt to income ratio, credit history, and the amount of home equity, or ownership you have.

You need a good credit score. Each lender has a different minimum credit score requirement for refinance approvals. However, you should assume that you need your credit score to be in a high credit score range. If your credit score isn’t high, hen you should work to improve your credit score before your apply for a refinance loan, which will help improve your chances of having your VA Loan refinance approved.

Debt to income ratio. Your debt to income (DTI) ratio represents the percentage of the monthly gross income that goes toward paying your fixed expenses such as debts, taxes, fees, and insurance premiums. Lenders us your DTI ratio as an indicator of cash flow to see how what percentage of your income is going toward fixed costs. Lenders use different standards for loan and refinance approvals, but the thing to remember is a lower DTI ratio is better than a high DTI ratio.

Credit history. Lenders use your credit history to verify how well you have handled credit in the past. Past performance isn’t always an indicator of future performance, but it has proved to be useful for lenders. A few blemishes may not hurt your chances of a VA Loan refinance, especially if they happened some time ago, since recent credit history is weighted more heavily. If you have problems with your credit history, then it may be best to try and clean things up for a few months before applying.

Home equity. The larger the percentage of your home yo own, the easier it may be to get approval for a refinance loan. Lenders typically prefer the owner to have around 20% home equity before they will approve a refinance loan, but this isn’t a hard rule with all lenders. There are also some government programs available for people who have less than 20% home equity.

What if Your VA Loan Refinance Application is Declined?

Lenders can approve or decline a refinance application for a variety of reasons, so your best course of action is to speak with the loan officer who declined your application and ask him or her to explain why your loan application was declined and if they have any recommendations you can use to improve your odds of being approved for a future VA Loan refinance application. You should also be aware that a new law will soon require lenders to give you a free credit score when they decline your loan application. This information can be helpful in determining your next steps to improve your credit score, or work on other areas, such as improving your debt to income ratio, improving your credit history, or increasing your amount of home equity.

Find current VA Loan Rates on our site, or visit VAMortgageCenter.com to see what your refinancing options are.

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TheMilitaryWallet.com is not connected with the Department of Veterans Affairs or any government agency and is for informational and entertainment purposes only. The content on this site should not be considered professional financial advice. References to third party products, rates, and offers may change without notice. We may receive compensation through affiliate or advertising relationships from products mentioned on this site. However, we do not accept compensation for positive reviews; all reviews on this site represent the opinions of the author.