Easy Ways to Look for the Best VA Lender
For our honorable veterans and defense personnel, the Government ensures that they get the best in return for their services.
And to help them buy a safe and sound place for their family the government offers a VA Loan. It is a mortgage against the property, but unlike the conventional mortgage, it is partially backed by the Department of Veteran Affairs.
Here's what you need to know when you search for the best VA Lender:
Ensure that the Lender is Approved by the Department of Veteran Affairs
Not all financial institutions are approved for VA Loans. Although, some institutions are approved but still that does not make them an expert in the subject. Look for the lenders who are approved by the Department of Veteran Affairs and deal in VA Loans, specifically.
Note: Confirm Your Eligibility for the Loan and The Value You're Qualified For
Before you apply for a VA Loan, you would need to confirm if you are eligible for Loan and if you are eligible, to what amount you are qualified. Some of the eligibility criteria include:
Confirm If They Can Help YOu Obtain a Certificate of Eligibility
If you can fulfill any of the aforementioned criteria, then you are eligible for a VA Loan. But, you’d need to prove your eligibility to the lender, in order to be able to avail the loan.
Simply said, you need a Certificate of Eligibility from your concerned department, or you can also apply for the same on the VA website. Alternatively, if your lender can help you get the CoE, it would really be a great deal. Most of the VA approved lenders do offer services to help obtain CoE.
Look for the Ones Who Charge Minimal Fees & Rate of Interest
An important part of your VA Lender hunt should, of course, be the finances. You need to understand that every lender charges different rates of interest, along with varying processing fees.
If you have lower credit, Bruce Glassinger from VA Loan Lending recommends that you avoid paying a VA loan origination fee as it takes away from money you need to use for making payments. This would allow you to save a lot on your current finances, as well.
Get a Pre-Approval for Your VA Loan to Save on Time and Effort (Optional)
Once you have decided on your VA Loan provider, you can proceed to analyze how much loan do you need.
Having said that, a typical lender would process and transfer your loan, only after you crack a deal with a potential home seller. Getting a pre-approval can obviously save you a lot of time during your loan processing.
VA Loans can be very helpful in the event of any foreclosure, or failure to repay the mortgage. Make sure you go through the lender policies carefully before closing any deal with them.