BusinessHABva mortgage lending: Buying a home is an expensive venture. In most cases, the cost of purchasing real estate comes with hefty hidden costs.
From property taxes and homeowner’s insurance to mortgage interest and closing costs, financing your new home adds up fast. That’s why you should thoroughly research all the different home loan options before making your final decision.
An accurate understanding of what you can expect from a mortgage lender will help you make the best decision for your financial situation.
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Therefore, if you have your eye on buying a home in the future, it’s advisable to learn as much as you can about mortgage lending before doing so.
You may not know it yet, but these questions will come in handy once you begin looking into mortgages.
Here are some key topics to keep in mind when researching mortgage lenders:
If you’re ready to get started in the world of home ownership, then a mortgage loan is probably your next step.
As a responsible homebuyer who understands their responsibilities and risks, you will want to do your research before signing on the dotted line.
Mortgage loans are an important part of the process of buying a house; however, they can be tricky if you don’t know what questions to ask or things to look out for.
In this blog post, we will discuss some important questions to ask before applying for a mortgage loan from a VA lender.
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What questions should I ask about the company?
Buying a home is a huge financial and personal decision, so working with a lender that’s trustworthy and service-oriented is vital. Ultimately, you want a lender that inspires confidence, is dedicated to your success, and has a track record of closing loans on time.
When considering a potential VA lender, ask them things like:
1) Do your loan officers receive any special training in working with veterans? Are there underwriters that specialize in VA loans?
VA loans have some special nuances compared to other mortgage programs. You want to be sure the lender’s team is knowledgeable in VA mortgages specifically — not just mortgages in general.
2) Is the company active with veterans in a charitable or community capacity?
If a lender volunteers or contributes to military or veteran causes, it’s typically a good sign that they’re familiar with the unique needs of the military community.
3) How long does it typically take you to close a VA loan?
The best VA home loan lenders have a track record of closing VA loans efficiently and on time.
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4) Does the company prioritize purchase transactions over refinances?
Low rates can mean that lenders get overwhelmed with business. Refis can really gum up the works for lenders, leading to longer closing times for home purchases. The best lending companies put purchase transactions to the front of the line as a matter of company policy.
5) Does the company have a good reputation in your market?
Real estate agents know where you are getting financing based on your preapproval letter. If you’re using a company no one has heard of, or worse, has a reputation of closing late on every transaction, the agent may move your offer to the bottom of the pile. Choose a lender that has a golden reputation among agents in your market. Using a company that closes on time every time will give you a leg up versus other offers.
Questions to ask the loan officer
It’s not just the company as a whole you’ll want to consider. The individual loan officer makes a huge difference, too — and their expertise in VA lending can make or break your transaction.
To make sure you’re getting the guidance you need, interview your potential loan officer like you’re hiring for a job (because that’s exactly what you’re doing).
Here are a few questions you might want to ask a loan officer before deciding to work with them:
6) How many VA loans have you personally closed in the last 6 months?
Ongoing experience ensures that the loan professional sees a lot of situations. He or she has overcome many hurdles for previous applicants and is more likely to close your transaction successfully.
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7) What are some strategies you use to encourage sellers to accept an offer with VA financing?
In a competitive housing market, sellers sometimes skip over offers with VA financing. It might be because VA loans require zero down payment and sellers prefer large down payments — or all cash. Additionally, VA loans come with stricter appraisal requirements to better protect Veterans from “lemon” homes. Yet sellers would rather not do repairs. What has the loan officer done to convince the seller and seller’s agent that VA offers are worth considering and even moved to the top of the stack?
8) How accessible are you if I have questions or concerns?
Buying a house is an emotional and stressful experience. It’s amazing how much a simple text or email from your loan officer can help you sleep at night.
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9) What systems do you have in place to communicate loan progress?
Most lenders have online portals where you can check the progress of your loan, get notified of needed items, and upload sensitive documentation. Make sure your loan officer knows how the system works and walks you through the login process if you’re not technically savvy.
Conclusion
VA loans come with some extra requirements, so finding a trustworthy and experienced VA lender is critical to buying a home successfully with these mortgages.
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