First-Time Homebuyer

How To Choose A Mortgage Lender

Choosing the right lender for your mortgage is crucial to getting a great loan that you can afford. It's important to do your research and ask the right questions before signing any papers. This guide will help you find a VA loan lender that's perfect for you!

Choosing The Right Lender

Understand The Different Types Of Mortgage Lenders

The type of lender you choose will determine your loan offers, what you’ll pay for your loan and the kind of customer service you can expect to receive. 

Direct lenders= Usually big banks that work directly with homeowners to originate and underwrite loan products with their own funds. 

Mortgage brokers=Licensed professionals that work as intermediaries between lenders and borrowers. These don't lend money directly and are paid a commission. 

Nonbank lenders=Use lines of credit to fund mortgage loans and then sell loans to investors.

Ask For Referrals

When it comes to finding a trustworthy mortgage lender, you need someone who can take the time to understand your unique needs. The best way to do this is by asking for referrals from friends or family members who have used a good mortgage lender in the past. If they've had a positive experience with their lender, then chances are very good that they will recommend that person again!

If you're having trouble coming up with names on your own (or if none of your friends or family members have ever used a mortgage lender), then consider reaching out to an expert in the field like an experienced real estate agent or financial advisor. They may be able to connect you with one of their trusted contacts who will be able to help you find what makes sense for your situation.

Find An Experienced VA Loan Lender

Not all lenders can handle VA loans so before you get your heart set on a specific company or lender, ensure they are equipped to handle your loan. 

Find out how long the VA lender has been licensed and how many mortgages they issue per year. That way, you can gauge how well they know the special requirements of VA loans and if they are capable of circumventing issues that may arise during underwriting. 

Compare The Loan Terms, Rates, And Fees

Mortgages come with various terms or payment schedules. Common mortgage terms are 15 years and 30 years. But you can also find 10, 20, or even 40-year mortgage terms. The terms of your mortgage affect the monthly payments and the total amount of interest you’ll pay.

Make sure you compare the loan terms, rates, and fees. While focusing on the interest rate is easy, don't forget to include other important details in your comparison. For example, if a lender offers a lower interest rate, but it comes with higher upfront costs or a longer term that can make your monthly payment more expensive over time, then you might want to consider another option.

While you evaluate lenders look at:

  • Fees 
  • Interest rates
  • Monthly payments
  • Private mortgage insurance monthly payment and taxes (if applicable)
  • Down payment requirements and other upfront costs (if applicable)
  • Closing costs

Consider Online Lenders

Online lenders may be a good option if you want a competitive rate and want to avoid the hassle of going through an in-person application process. Online lenders usually offer a wide range of loan programs and can often approve your loan within 24 hours. They also tend to have flexible terms and conditions, which allow borrowers to personalize their loans based on their needs.

Click here to request more information about the VA Home Loan
Start with an Instant Prequalification.


Follow These Tips And Get The Right Home Loan For You

VA loans are government-insured loans which are backed by the U.S. Department of Veterans Affairs (VA). They’re available to active duty service members, veterans, and their surviving spouses. There are no down payment requirements or monthly mortgage insurance payments with a VA loan.

A VA loan can be used for purchases and refinancing a home. If you want to buy a new home or refinance an existing one, a VA loan could be your best option.

Learn how to apply for a loan or refinance your current one with Military Homespot Lending. Click here for the details.