In a fast market, sometimes it is as crucial to select the right lender as to select the right property. While veterans who benefit from a VA loan may be blessed with excellent financing opportunities, the lender you select can impact the ease with which your purchase goes from pre-qualified to closing.
When competition is high, you may find that you have to make a better offer because when you don’t just look at the interest rate, you can save yourself some extra costs and make a better offer.
Start With a Lender Who Understands VA Loans
Not all mortgage professionals are experienced in VA financing. Ask about the lender’s frequency of VA purchase loan experience and whether the loan team is familiar with veteran requirements, appraisals, eligibility, and common documentation issues.
A veteran lender who has experience with veteran loans can be better equipped to outline the process, foresee possible challenges, and help your application along for the journey. It is best to look around with multiple veteran mortgage lenders as interest rates and lender fees may vary.
Compare More Than the Advertised Rate
A low advertised rate may be attention-catching, but don’t only consider it a number. Request specifics from each lender about the interest rate, points, lender fees, estimated closing costs, and other costs.
There are many closing costs that lenders can choose, as well as the interest rate and discount points. When it comes to comparing offers, you’ll get a much clearer picture of which lender is really offering you value when you compare the overall cost of each offer.
Ask How Fast They Can Get You Preapproved
With a competitive market, preparation can have a tremendous impact. When you make your application to potential lenders, you should inquire about their turnaround time for reviewing your financial information and providing a preapproval.
Having a good preapproval can help the seller understand that you’ve made key financial preparations. Request information on documents needed to process an urgent request and who will be on hand if assistance is needed.
Understand Loan Costs
An added benefit of veteran financing is that eligible borrowers might have the ability to obtain financing without a down payment and without monthly private mortgage insurance. Closing costs and a veteran funding fee may still apply, however, to many borrowers.
Inquire with the lender if you should be waived the funding fee and if it would be beneficial to pay the funding fee or finance the fee. Inquire about negotiable closing costs, as well.
Evaluate Communication Before You Commit
Last but not least, be mindful of the communication style of a lender while you’re searching for a loan. Slow responses, lack of clarity about explanations, or fees that fluctuate without a clear explanation could be warning signs.
The best veteran mortgage lender firms ought to leave you feeling informed, not rushed. When it comes to buying a house in a tight market, that mix of veteran knowledge, clear pricing, quick response times, and reliability can be more important than the lowest advertised price.
