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5 Important Steps To Getting Your VA Home Loan

By admin On September 8, 2010 Under VA Loans, VA Purchaes Loans, VA Refinance Loans

Qualifications for a VA home loan are easy but searching for the lender can be a nightmare.  There’s a big difference in lenders and it will make a huge different to your pocket book if you find the wrong one. Here are 5 steps to use when comparing mortgage lenders after you find  your dream home.

One of the advantages veterans have over civilians is the easy of processing a VA home loan. But with all things whether you’re a civilian or veteran finding the right lender for your home loan can put you in the red faster than a speeding bullet.  Pardon the pun…If you want your mortgage payments lower, no down payment, and little or no fee loan transaction then the right lender will offer you the best options.  Start with step one before signing with any mortgage lenders.

Step one — Talk to the loan officer about fixed or adjustable mortgage rates until they explain it to where you understand exactly what both words mean.  At times, a fixed rate is best and other times an adjustable one is even better.  Don’t just sign on the dotted line because they make it sound good, make sure you understand how much it’s going to cost in the long term.  It can save you hundreds of dollar in years to come.

Step two – Ask if they are direct lenders or the broker.  A direct lender is the actual bank you’re talking to and they can expedite the loan process but they might not be able to offer you the best deal, they have limitation.  However, if they are a broker that could be working with multiple lenders with different interest rates.  Remember to ask a lot of questions about the interest rates.

Step three – check your credit score before talking to a lender.  Yes, it cost a little bit to see it but it’s better to know what your credit rating is before you talk to them.  If it’s on the low score then wait a few months and get it up before you think about signing with any lenders.  A lower score credit score means higher interest rate on your VA home loan. On a side note, the more companies that pull your credit report will cause your score to drop.  One broker can give it to several lenders without pulling it down.

Step four – Read the Good Faith Estimate (GFE).  The document shows where the loan charges go and what the seller will pay you.  Lenders are required by US Federal law to give you a GFE within three days of filling out your application for your VA home loan.

Step 5 – Ask tons of questions.  Before you meet with any loan officer, make a list of question and take it with you so you remember them all.  Make sure they answer them all to your satisfaction.  If you have to use a recorder, then do so.  It’s their job to make sure you understand what you’re getting into when you apply for a home loan.  The loan officer should be able to answer all your questions without asking anyone else.  If they can’t look around for another one who can.  If they don’t take the time to make you understand the answer your questions about your VA home loan, then they’re not worth your time.  Find another one!

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