Since its inception in 1944, the VA Home Loan program has helped over 22 million veterans achieve home ownership. Veteran home loans are some of the best on the market, with no down payment or mortgage insurance. In addition, these loans have some of the lowest interest rates around.
However, once you're approved for a VA home loan there's a whole new set of questions that need to be answered. How can you find the best VA loan lender? More specifically, how can you find the best VA Loan lenders for you?
There are several things to look for when considering VA loan lenders, but the biggest deciding factors in your search should be whether they're VA approved, what programs they offer, and what factors they consider when putting together your loan. These three factors can mean the difference between working with a VA home loan lender and foregoing your loan altogether.
This should be the top priority for any borrower looking to get a loan. You need to know what the status between the VA loan lender and the VA is in order to determine their integrity as a lender. Many VA Loan lenders can have loans written according to Fannie Mae and Freddie Mac guidelines, and while those are great for conventional home loans, they don't typically apply for VA loans.
If the VA loan lender is not VA approved, you should seek out a lender that is. An approved VA loan lender not only fully understands the VA program, they can get the approval process completed much faster. They also have the authority to accept your loan application and to order the appraisal required by the loan according to VA standards. And an approved lender can do all of this in-house, without a third party.
After searching for approved VA Loan lenders picking one, you should compare their programs and loan options. While the VA loan has many key factors that don't change, such as the lack of a down payment and mortgage insurance, some loans can vary in terms and rates. When comparing programs, you should try to stick to a single type of program. For example, only compare 15-year programs to other 15-year programs and so on.
The primary goal in this process is to find the best combination of rates and fees using your specific standards.
A VA loan lender takes several things into consideration when they create a plan for an individual or family, especially when assigning an interest rate. These factors include your credit score, loan amount, and how long the loan is termed for. While the VA itself does not have a specific credit score requirement, many VA Loan lenders will list a minimum they work with.
Loan rates can often change from day to day, so you should be sure to get all your quotes on around the same day to get the best comparison. Don't rely on websites or advertisements for your ratings, either.
Finding the best VA loan lender for your needs can be difficult, but it doesn't have to be impossible. Keeping these factors in mind when you search VA Loan lenders will insure the best outcome for you and your familiy.