There are a number of specific benefits when it comes to securing a VA loan. While the main ingredient to this ideal recipe is no down payment required, the interest rates can still be quite competitive for those procuring the loan. Once you’ve determined that you’re eligible for this sort of loan, you’ll want to take the following into consideration when choosing a top lender.
Lender Status
There are a number of factors that can come into play when you’re ready to decide on a VA approved lender. While past downfalls such as overcoming poverty and job loss can be obstacles that may have gotten in your way, being a homeowner can provide you with a sense of accomplishment. Once you’ve overcome your hurdles and have your credit in check, the first requirement in obtaining a VA loan is knowing whether the lender has direct VA status. Most companies offer the same variety of conventional loan commitments. However, the lender needs to be approved by the VA before they can offer this special type of loan. In addition to accepting your VA loan application, VA approved lenders can also order an appraisal, do the underwriting and complete this in-house process without the use of a third party. Lenders not qualified to obtain a VA loan may also take your loan, but forward it on to someone who is approved and can do this. It’s important that the company that you’re using knows the rules, follows them and has the ability to get the job done in a timely manner.
Decide on a Program
Now that you’ve understood the challenges of shopping around and securing a lender approved with VA loans such as Vintage Oaks Veteran Home Loan, you need to decide on the type of loan program that you would like to use. Multiple VA loans are plentiful and can vary. From 25 year fixed rate loans to 3/1 hybrid and a 15 year, you’re going to have to assess the various quotes. You also need to decide on a program and stick with it. It doesn’t pay to compare a 30 year fixed to that of a 15 year. By combining the rates and fees associated with them, you can select the best deal among the many offerings.
Taking into Account the Variables
There are a number of factors that a VA approved lender will take into account when they assign you an interest rate. These can include the credit score, number of years that you’ll need the rate, loan amount and lending fees that are assessed to the veteran. While they may not require a certain credit score for the person trying to obtain the loan, they will probably ask that your credit rating isn’t lower than 620. If your score is 720 and above, you may be able to secure a better interest rate. Loan amounts that are lower may also have a higher rate than the larger amounts. Other factors that can determine your rate is your lock period and length that you’ll need to secure the loan. Because rates can go up and down each day, you want to get your quotes near the same time. This will help you to better assess which VA loan is more cost-effective. To simplify the process, you can call the VA approved lenders and ask them for a quote on a 15-year fixed rate loan with an amount of $185,000 with no points. You can personalize the question to go with your particular requirements. You may also want to tell them the status of your credit such as excellent, and the number of days you’re looking to close on the dwelling. This way you’ll be able to get the rates and take advantage of them instantly.
