VA loans have many advantages over conventional loans, which makes them popular among veterans looking for loan options with low-interest. Individuals who qualify for VA loan either need to make either no or a minimum five percent down payment and there’s no need to take monthly mortgage insurance. When looking for a VA loan, it is important to seek help from the right vendor so that the process is smooth and you get a low-interest rate. The blog provides a list of things to consider when deciding upon a VA loan lender:
How VA Approved Lenders Differ from Others
Many borrowers are not aware of the fact that all mortgage lenders are not approved by the U.S. Department of Veteran Affairs. Avoid a lender who is not approved by the VA as there are chances that such companies may not understand the intricacies of the VA program. In addition, the distinctions of a VA approved lender include:
VA approved lender has authority to accept the loan application, order the appraisal and underwrite the loan according to the VA standards. The whole process takes place in-house without the interference of any third-party.
Give preference to a lender with substantial experience in the industry. There are some warning signs indicate that the lender may not be experienced in government based loans; the red flags include:
- If the lender doesn’t ask about your military service
- If the lender doesn’t use jargons like “eligibility” and “entitlement”
- If the lender is not aware of the VA loan guidelines
- If the lender isn’t able to give a satisfactory answer for basic questions related to the benefits of the loan
Choosing a VA Approved Lender
No two VA loan lenders have similar experience and expertise in handling and approving VA loan applications. Choose a lender who knows about repeat use of home loan benefits or has experience in assisting clients with frequent relocation issues due to Permanent Change of Station (PCS). Check the ratings of lenders on Better Business Bureau and other organizations.
An experienced VA lender provides the customers excellent customer service and helps them make the right decision. If the lender offers honest advice on making financial decisions and is able to give satisfactory answers to all the questions, there is a high possibility that you have made the right choice. Look around for reference, compare quotes and use your judging skills before finalizing a name. A little hard work and time investment at the start could payback in terms of a more secure future and financial gains.