Best VA Loan Lenders

Every mortgage lender is different, so it’s important to find a lender that’s compatible with your circumstances. Below are a few tips to help you choose the right VA lender for you.

“Begin your search by getting recommendations from military colleagues, family, and fellow service personnel who have obtained VA loans,” advised Malcolm-Wiley Floyd, the CEO of Stairs Financial. “Ask about their experience, including the smoothness of the process and the lender's ability to answer their questions.”

• Decide if you want in-person or online services: If you like the convenience of an online lending process, check out VA lenders with an online service option. If you’d rather work with an in-person mortgage lender, find out which national lenders have branches in your area or look into working with a local VA lender.
• Compare lenders: Apply for pre-qualification with more than one VA lender before choosing a company. Mortgage rates change frequently, and comparing rates and terms can help you find the best VA loan for your situation.
• Make sure you meet the lender’s VA loan requirements: Each mortgage lender has different VA loan requirements. While they tend to be less restrictive than the requirements for traditional mortgage loans, you should still familiarize yourself with the eligibility requirements. Ask potential lenders about any credit score, down payment or income requirements they have for VA loans.
• Double-check that the lender offers the services you’re interested in: VA loans aren’t limited to new home purchases. If you want to refinance an existing VA-backed loan, make sure your potential lender offers this service before committing to work with them.

Floyd also advised borrowers to “look for VA lenders with experience in handling VA loans. An experienced VA lender will have a better understanding of the specific requirements associated with VA loans and will be more equipped to guide you in choosing the best mortgage for your financial situation.”

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VA loans offer considerable advantages, including no down payment, lower credit score eligibility and no private mortgage insurance. A borrower who can take advantage of a VA loan can possibly save thousands in fees and costly charges.

But VA loans have a few drawbacks, too, which means you should carefully consider using this loan as a path to homeownership or refinancing.

For starters, there is an automatic funding fee charged by the VA, which is generally 1.25% to 3.3% of the loan. Plus, you can only use a VA loan or VA refinance on a primary mortgage. There is also a bit more paperwork involved in VA loans, which makes some sellers not willing to accept this kind of buyer financing.

Applying for a VA loan is very similar to applying for a traditional mortgage loan. However, there are a few extra steps you need to take to confirm your eligibility and move forward with the lending process:

1. Verify your eligibility: Before you apply for a VA loan, make sure you’re eligible by reading over the VA’s requirements.
2. Find a VA loan lender and get preapproved: You can get preapproved for a loan by submitting documentation like W-2s and pay stubs. If you have a preapproval letter, sellers might be more interested — it shows you can afford the house you want.
3. Apply for a COE: Your lender uses your COE to verify that you meet all the eligibility requirements to fill out a VA home loan application.
4. Complete the VA loan application: You’ll need to include information about your income and debt. You’ll also authorize the lender to pull your credit history. Your lender will work with you on your VA home loan application to make sure you have all the necessary information. Plan to wait 30 days for your VA loan approval.
5. Schedule your VA appraisal: VA loans can’t be approved above a home’s appraisal price, so VA lenders are required to order an appraisal to ensure the property meets VA standards and determine its value. VA appraisals generally take about 10 days, but they can take longer, especially in parts of the country where there’s a high demand for VA loans.
6. Have your VA loan underwritten: Underwriters verify that your loan is accurate and determine whether or not you’ll be able to make your monthly mortgage payments.
7. Close on your property: The last step in securing a VA loan is closing on your new home. You’ll have to pay your VA loan guarantee to the VA office within 15 days of closing. You can pay it upfront in cash or roll it into your monthly payment. First-time homebuyers have to pay a 1.75% guarantee fee, and all other homebuyers pay a 2.25% guarantee fee.

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