VA Loan Lenders Require Scrutiny

The lender a veteran chooses is the important key that ultimate decides whether getting a VA home loan is a nightmare or an easy process to get you into your dream home. Following are some first words to heed before you go VA home loan shopping.Fixed Rate vs. Adjustable Rate VA LoanWith a fixed rate VA loan, there will be no surprises in the future regarding interest rates. Your payment will remain the same. On the other hand, an adjustable rate mortgage is often 1.5-2.00% lower than fixed and this can be huge savings. For instance: a loan of $100,000 with a 5.5% rate costs $567.00 a month, this is principle and interest only. The same loan with a 3.5% interest rate is only $449.05 every month. After three years, that amounts to about $4,246.56 that could have been diverted to other necessities. But, that low rate may grow. Be prepared by asking to see some worst cast scenarios based on the highest rate.Direct Lenders vs. BrokersA direct lender can expedite a loan application. But, such a lender may not have a variety to offer. Direct lenders often have only one program at one interest rate. A broker, on the other hand, could be working with scores of lenders, each of which may have their own rates. To add to the pile, VA Home Loan Centers offer a hybrid arrangement and wear both the hat of a direct lender and a broker.Watch Your Credit RatingDid you know that the more your credit report is pulled by different lenders, the lower your score may devolve. Credit agencies see this activity as being loan needy. And, the lower your score, the more interest you may pay. Brokers can usually submit your application to multiple lenders without a bunch of activity on your credit report.Good Faith Estimates (GFE)What is a GFE? Within three days of filling out a VA Home Loan Application, federal law requires the lender give you a good faith estimate. This will lay out all of the charges associated with the loan, including those the seller will cover. A loan officer will be able to define all the various charges paid by you as well as covered by the other parties.Reputable Loan OfficerYou are making one of the biggest investments ever in your life. You do not want someone who does not know what they are doing be an usher to the process. Ask the officer how many VA loans they have pushed through. A VA loan is not like a conventional loan. A newbie can ruin your home purchase or cause thousands of dollars to leak from your pocket as the loan matures. Your first question to a loan officer should entail asking about the VA funding fee. If they cannot tell you immediately, you have a rube.No Questions UnaskedYou have heard that the only stupid question is the one you have failed to ask. This is especially true in this turning point in your life. It is a complicated process, no doubt about it. If your officer will no or cannot answer your questions, find another. Your officer should be an expert at guiding VA home loans through the process. At any rate, you have done your duty to country, you deserve respect.