At the best of times, finding a good VA 30-year fixed rate mortgage is a minefield, and it can get worse when you have to negotiate for VA loans besides finding and securing a property. The process can be quite overwhelming, and you may find yourself settling for a less than the best possible rate. However, with a few tips from experts in the industry, you will find that it’s much easier to navigate VA loans, as well as finding the best lender and rates.
As with any other mortgage, timing has a considerable role in your VA loan. This is because the prevalent property market will directly affect the interest rates that are offers with all of the loans. This means that timing will be crucial when applying for a mortgage. As such, if the market doesn’t look promising, then consider waiting a few months before you make your purchase. This can really improve the rates offers you get, as the market recovers.
Typically, VA loans allow members to borrow up to 100% of the mortgage amount, meaning that you don’t need any money for the upfront down payment, and there’s no need to get private mortgage insurance. However, this should not be taken to mean that there is nothing to be paid off immediately. Be sure to consult your lender on exactly what amount you need to pay, and their charges for appraisals, locking in a contract, or conducting a home inspection. The VA also considers whether you need to pay funding fees, which usually ranges from 1.25% to 3.3% of the total loan amount. Don’t forget that all these payments add up to the total mortgage amount, and you should take them into consideration as you shop around.
Comparing the different offerings from different lenders is one of the simplest ways you can ensure that you get the best 30-year VA home loan rate. All you need to do is call lenders and interview them about their quotes, and be a bit more specific on exactly what you want. Some of the lenders might not be able to offer you enough, while others might have rates that are too high. As such, choosing a mortgage lender is a huge deal, so you need not to rush or to be rushed. Compare banks with specialized VA loan companies, large corporations with smaller companies, collecting as many quotes as possible before committing.
To get the best rate for your loan, it’s also very important to ensure you have a correct credit rating. Errors do crop up all the time on credit scores, and overlooking it could cost you your dream home. Therefore, before applying for the loan, make sure that you carefully check your credit report, and correct any mistakes and add anything that might be missing. It might seem a minor issue, but you will end up saving yourself much money and time in the long run.
Applicants are also often worried if they need a real estate agent. While it’s still possible to research lenders and secure a loan from home, it’s still worth consulting with a real estate agent for help especially if you are unsure about where to start, or if you’re not confident using the internet. Real estate agents are a knowledgeable about VA loans and can therefore help you get the best rates, and save you money. If you decide to work with an agent, look for a high level of experience in the field.