If you’re a veteran or active service member who has already used your VA loan,…
Finding a VA mortgage lender can be difficult for service members who are first time homeowners and seasoned home buyers alike. Comparing differences in interest rates, repayment terms, and difficult to understand loan terms can make the task seem daunting. For most people, it’s important to balance finding a lender with experience and a lender with the best rates. If you understand how to accurately compare different VA mortgage offers, you can make the choice more easily. Read on to learn more about making sense of the VA mortgage comparison process.
Figure Out What Type of Loan You Will Need
Once you determine what type of home loan you will need, you’ll be able to make comparisons between >different types of loans without as much confusion. If you’re trying to compare a VA renovation loan with a VA Purchase loan, or a 15 year loan with a 30 year loan, you’ll have a hard time getting anywhere with your decision. Once you figure out what type of VA loan you need, you can get into the nitty gritty comparisons.
Gather Quotes from VA Loan Providers
An important part of getting quotes from VA lenders is asking specifically for their rate for your loan amount under your exact loan terms. It is important to be very specific when getting quotes so that you aren’t comparing incorrect rates and terms when you have several quotes on the table to choose between.
When you’re making phone calls around to different lenders getting quotes, be sure to get the information on their fees as well, and factor the cost of fees into your comparison. Keep in mind that the VA funding fee is a standardized fee, charged by the government, regardless of your lender. All other fees will be lender-specific and you should factor fees into your choice. Different lenders will likely have different closing costs associated with them.
Comparing offers from different lenders with competitive interest rates seen on VA loans is easier said than done. While one provider might offer a lower interest rate, one might offer lower overall fees. It’s necessary to break down the interest rates, fees, points, and other factors associated with each of your loan offers to choose the one that is right for you.
Compare Different Loan Options from Multiple Providers
After gathering quotes on VA home loans from different lenders, compare all of the different options available to find the best one for you. By getting multiple different quotes, you’ll be able to get an idea of what the average rates and fees are in the market. As you get to know your different options for lenders, you’ll likely get an idea of which provider you’d most like to work with.
Negotiating May Get You a Better Deal
If there’s a good VA lender that you really want to work with, but you’re being offered a better mortgage loan deal or a lower rate with a different loan provider, use that deal to leverage with your desired lender. Negotiate and try to reach a compromise with the lender so they get your business, and you get the loan terms you want. Don’t be afraid of negotiating, this can get you lower fees, lower interest rates, and more. However, there are a few things that can’t be negotiated, including the VA loan funding fee, transfer fees, government recording fees, and appraisal fees.
Get a Better Home Loan with FAM VA Home Loans
Do you have questions about buying a home with your VA mortgage benefits? Our team of loan professionals can guide you through each step. From getting pre-approved to signing closing papers, our experts at Finance of America Mortgage are here to help you meet your home buying goals. Get in touch with us today.