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VA Loan Reminders

The VA loan stands out as an exceptional loan program, and it’s one that we LOVE to do because of the benefits it offers qualified service member borrowers. 

Some qualified candidates are unaware of the program or have received incorrect information from unqualified lenders, causing them to hesitate to use it. 

A couple of months ago, we put out a quick myth vs. fact sheet blog that went into some of the more “common” misconceptions about VA loans. Today, we wanted to touch on a few more important aspects of choosing a VA loan that we think you should know! 

There are many  benefits to the VA:

  • Lower rate than conventional financing
  • No monthly mortgage insurance (ever!)
  • No down payment required
  • Program is less sensitive to credit score differences

Use a local lender (that has an on-site underwriter) 

Service members are unsure where they need to go to inquire more about the VA loan program, and they assume the best place to get the most knowledgeable people to help them with a VA loan is an online lender like Veterans United or USAA. Buyers should know that Veterans United is not the same thing as the Department of Veterans Affairs. They might like to say that they are the VA’s number 1 preferred lender on their site, but they are not actually associated with the VA. 

Online lenders and some local banks do not participate in additional programs like the Iowa Finance Authority. IFA programs add additional benefits to the VA loan, such as the $5,000 Military HomeOwnership Assistance grant. Residential Mortgage Network is proud to be a Preferred Lender with the Iowa Finance Authority. 

There is a significant cost difference between an online lender vs. a local lender when it comes to closing costs and interest rates. We are talking about thousands of dollars and the interest rate difference can be as high as 1%. Iowa is generally a low closing cost state and online lenders still charge extremely high fees. 

Check out the VA Facts vs. Myths blog for a more in depth look at the cost breakdown between VA and Conventional loans- or contact us, and we’ll tell you the truth!

Does the Lender actually offer VA loans or does their website just say they do?!

Don’t just choose anyone who lends. There is a BIG difference between using a local lender that actually does VA loans and one whose website just says they do. We recommend working with a local lender who has experience with VA loans rather than just any bank. This will make sure that you are working with someone who genuinely cares about your needs and can help you get to the closing day smoothly.

It’s a huge red flag if a lender tries to persuade you not to use a VA loan due to ‘higher fees’ or ‘higher rates’. That is typically a result of their inexperience or inability to efficiently process and close a VA loan. 

There are local lenders that can be banks, mortgage banks, brokers and credit unions. Lenders who specialize in VA loans typically have a deep understanding of the intricacies and specific requirements associated with these loans. Their expertise can be invaluable in navigating the VA loan process, and they also are a lot more flexible and helpful with problem-solving, which leads to faster processing times. Additionally, just like with online lenders, not all banks or even local lenders can offer you programs like the IFA $5,000 Military HomeOwnership Assistance grant. 

If you want customized solutions, a faster time to close and dedicated support from pre-approval to closing and beyond- go with an experienced VA lender! 

But Remember, the Lender You Go With Makes Or Breaks the Process 

Not all lenders are created equal—especially when it comes to VA loans. Some lenders will advertise that they do VA loans, but then they’ll try to dissuade you from doing one and tell you that it’s overly complicated, not worth it, or will take you much longer to close. False, false, and false. 

Find a lender who is familiar with VA loans and works with Veterans all the time—we can guarantee your loan will not and should not take more than 30 days to close, and it will not be too complicated to use that benefit. 

You deserve to reap the VA loan benefits if you are qualified, so don’t listen to a lender who tries to discourage you, and start looking for another lender if you’re not satisfied. If you’re in Iowa, we have an underwriter right in our office who approves VA loans all the time, and we can even get them closed within two weeks if necessary. 

The same goes for any Realtors you talk with who tell you not to bother with a VA loan! Do not believe a Realtor when they tell you to avoid using a VA loan because of the time it takes to close or that it has higher fees—they simply don’t know what they are talking about, and it is a sign to get a second opinion from another lender or Realtor! It’s all about who you work with. 

The Takeaway 

This all might seem confusing because there are a lot of lenders out there who don’t have enough experience working with VA loans and they provide misinformation, making it hard to know who you can trust. If you take away anything from this blog, it’s this: avoid online lenders, banks, or other lenders that try to talk you out of a VA loan. It can take some shopping around, but we guarantee that using the right lender makes or breaks the experience. 

If you have any more questions regarding VA loans, please come and ask us! It’s truly one of our favorite loans to do because we are passionate about getting veterans and service members the benefits they have earned by serving our country. We’ve been doing VA loans since 1987, so we know the ins and the outs!