Although there are a few options for veterans qualifying for VA home loan programs, VA mortgage loans for home purchases are probably the most well-known and most commonly utilized, and for good reason. Eligible veterans VA mortgage loans are a benefit of service designed to make home buying easier and more affordable for them.
What Are VA Mortgage Loans?
VA mortgage loans are more accurately described as VA insured mortgage loans because in actuality that is what they are. The federal government and/or the Veteran’s Administration does not make direct loans to veterans; instead, the federal government provides insurance for VA mortgage loans that decrease the risk of the loan, thus allowing lenders to offer better terms. They also grant VA mortgage loans to qualified veteran borrowers without requiring a down payment or requiring Private Mortgage Insurance to be paid on the loan.
The first thing to understand as a veteran interested in exercising your benefits is that your loan is still funded by a private bank or mortgage company, just as it would be if you were to take a traditional home loan; in this way the basic mortgage product is not very different. The difference is that the government guarantees payment on your loan should you default, and so lenders will be more willing to give you better rates and terms than you would qualify for on your own as a private citizen.
Why is it important to know this? Because it is important to know that as a veteran with this eligibility you should not settle for a lesser home loan. But even more importantly it is important to know this because it is important to know that the government only insures your loan, it does not dictate your terms. Different VA mortgage lenders will still offer different terms and interest rates, just like if you were shopping for a traditional home loan.
Practically speaking, this means that the first loan you are approved for may or may not be your best deal and you should seek the best VA mortgage loan terms you can. It also means that no matter where you live in the U.S. there are good and better VA mortgage lenders, so you should shop for one with that has your best interests in mind. However, know that that lender does not necessarily have to reside in your state—you might look for an Alaska VA mortgage lender online and find that the best professional will work from Colorado. The key to success is to work with an experienced lender that offers good terms and excellent customer service.
What VA Mortgage Loan Services Do Lenders Offer?
The other piece in understanding VA mortgage loans is knowing that there are a number of options available to you. The job of the VA lender is to work with you to explore those options and to walk you through the process seamlessly. Again, this does not necessarily mean the best professional will be local to you. For example, that Colorado or Alaska VA mortgage lender could be just as qualified (or more qualified) to walk you through the Pennsylvania VA home loan process. The process is based on federal regulations, so the same basic rules that apply for an Alaska VA mortgage lender will apply for the one managing the Pennsylvania VA home loan process, and so on.
Regardless of where you live and what your mortgage shopping needs are, if you are an eligible veteran, or think you might be, you should look into VA mortgages before making any final decisions. You might just find that VA insured mortgage loans offer just what you are looking for, including a VA home loan refinance. The tools and resources of VA mortgage lenders can help you determine whether a VA mortgage or VA home loan refinance might be best, and you can use their tools (like the VA mortgage calculators) to help you compare and contrast programs and terms.
There really is a lot to know about VA mortgage loans, but you do not have to try to navigate the waters alone. There are excellent VA mortgage experts and specialists that can clarify all your options and possibilities, and help you evaluate the benefits of VA mortgage loans so that you can be assured you are entering into the best home mortgage program with the most affordability for you.