When you’re looking for a home loan as a veteran, active service military member or surviving spouse, you may have some specific advantages if you opt for a loan backed by the United States Department of Veterans Affairs (VA). One of the first items to check off your to-do list is to find a professional and reputable VA loan lender. But where and how should you start?
As an eligible VA loan borrower, you’ll want to make the most of your advantages, and a trustworthy, experienced lender will have your best interests at the forefront of their mind. Here are some things you should look for as you’re shopping around.
Experience
You may want to consider a lender that has vast experience with VA loans instead of a lender that just offers them. The loan process may feel more comfortable with a lender that knows every detail and nuance of VA loans, and they can help you navigate any roadblocks or challenges that may come up during the transaction.
Do your research. Find out how many years the lender has been operating, how many VA loans they’ve done or do in a year, how much of their business is due to closing VA loans and how many individuals on their team have been doing VA loans for a significant amount of time.
Communication
One of the most important details you shouldn’t overlook is the lender’s communication style. Of course, they should be able to update you about your loan, talk to you throughout each step of the process and get in touch immediately if there’s a problem. You should also try to assess whether their ability to communicate works with your own communication style.
It’s also imperative they understand your preferred method of communication. Whether it’s calling, texting or emailing, they’ll need to know the best way to contact you so that you’re informed every step of the way. Keep in mind that good lenders will use all three to ensure you’re as informed as possible.
Reputation
Most lenders have online testimonials and reviews. It doesn’t hurt to take a look at some customers’ experiences to get an idea of what yours might look like. However, keep in mind that each borrower’s situation is different. One may have had challenges you won’t encounter and vice versa. They may have even viewed an experience differently than the lender.
Additionally, many lenders may be mentioned or featured on reputable industry websites. Try to gain as much information about the company as possible before you make your final decision.
Technology
Ensuring the lender you work with uses modern, innovative and secure technology that will keep your personal information safe is imperative. Not only will you feel more comfortable giving them your social security number and all your financial information, but you could also experience a smoother transaction without having to deal with mountains of paperwork.
Many tech systems can also help you move through the process more efficiently and let you track your loan as it goes through various stages and people.
Expenses
Cost isn’t everything, but it’s definitely important to find a lender that works with your financial situation.
Fees and interest rates can vary among VA loan lenders, so it’s important to take the time necessary to do your research and shop for competitive pricing. It’s especially important so that you can budget for the upfront cost of the loan itself and your monthly mortgage payment after you close on the loan. Some may even offer lender discounts, depending on your personal situation and their own policies.
Things to Keep in Mind
Before you decide to apply with the first lender that meets the aforementioned standards, you may want to consider a couple more items.
No home loan is one-size-fits-all. If you have a more complicated financial situation or aren’t sure about your specific VA advantages, you should make sure the lender you work with has the ability to help. It could be a waste of time and money to keep these issues from a lender only to find out they can’t provide a solution for you.
Lastly, make sure you work well with your lender. Remember, they’re human too, and sometimes, there are people you may or may not get along with. Meet with your lender in person, have a conversation and assess whether you can work together effectively for the length of the loan process.
Take Your Time
Time and patience are key when it comes to finding a VA loan lender you can count on. Finding the one that works for you is a necessary foundational step to help ensure a smooth home loan process. You’ll want to work with a legitimate business that’s experienced at what they do and has a good reputation among their clients. Most of all, a supportive professional can make the experience less stressful and more exciting.
This information is intended for educational purposes only. Products and interest rates subject to change without notice. Loan products are subject to credit approval and include terms and conditions, fees and other costs. Terms and conditions may apply. Property insurance is required on all loans secured by property. VA loan products are subject to VA eligibility requirements. Adjustable Rate Mortgage (ARM) interest rates and monthly payment are subject to adjustment. Upon submission of a full application, a mortgage banker will review and provide you with the terms, conditions, disclosures, and additional details on the interest rates that apply to your individual situation.
