4 Factors to Consider when Comparing VA Loan Lenders

When comparing VA loan lenders, there are several factors that you want to consider. Choosing the right lender for you can make a big difference in the long run because your rate, terms and loan amount are important factors that can be controlled by lenders. Here are a few factors to consider when comparing VA loan lenders.

1. Interest Rate

One of the most important factors to consider when looking at VA loan lenders is the interest rate that they charge. The interest rate affects your monthly payment as well as the amount of money that you pay to the lender for the entire life of the loan. Therefore, you want to find a lender that has the lowest interest rates available in the market today. While the interest rate should not be your only point of comparison, it will usually be the most important thing to consider. Look at the interest rate first, and then make sure that all the other factors are in line as well.

2. Closing Costs

When getting a VA loan, the closing costs will typically be lower than what you could get elsewhere. When working with the VA, there are restrictions on how much a lender can charge for closing costs. However, there will still be variations from one lender to the next on how much they charge for closing costs. As a borrower, you want to find the lender that offers the lowest closing costs in conjunction with a low interest rate. You may be willing to live with slightly higher closing costs if it gives you a lower interest rate overall. However, you need to consider the closing costs with the interest rate because this is more money that you have to spend for the loan.

3. Convenience

Another important factor to consider when comparing VA loan lenders is convenience. You want to deal with a lender that is very convenient to your situation. It can be handy to deal with someone that is local that you can stop in and talk to whenever you have a question. Many people prefer to do business face-to-face instead of with someone that is far away. However, convenience does not necessarily mean a close proximity to where you live. You could find a lender that does most of their business online and provides you with a level of convenience. Being able to access your account online, make payments online and chat with a customer service representative at any time could also be considered very convenient. Regardless of which type of lender you choose, it sure that you are comfortable with the level of convenience that they provide to you as a borrower.

4. Customer Service

You also want to find a lender that emphasizes a high level of customer service when dealing with their customers. You want to feel like your problems will be handled whenever something comes up. Check with online reviews and the Better Business Bureau to see how a lender handles their customer service.

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