Looking to buy a house as an active member of the military or as a retired vet? Here’s why using a mortgage broker to help you secure a VA loan is your best bet.
Military life is a difficult one: whether you’re on active duty or a veteran, you worked hard to create a better future not just for you and your family, but for our country as a whole. Often you’ll return to find that you have little support or guidance for how to readjust to civilian life and experience that peace that you fought for.
It can be especially challenging to buy a home for veterans and active-duty military personnel; thankfully, there are programs in place to help make homeownership more accessible. One such program is the VA loan program, which provides eligible veterans and service members with a variety of benefits, including lower interest rates, no down payment requirements, and more lenient credit score requirements.
However, navigating the VA loan process can be complicated, and that’s where a mortgage broker can be a valuable resource.
What are VA loans?
VA loans are mortgages backed by the Department of Veterans Affairs (VA), which was created to help military members and their families achieve homeownership. These loans are provided by private lenders but are guaranteed by the VA, meaning that lenders are protected in case the borrower defaults on the loan.
This guarantee allows lenders to offer more favorable terms, such as lower interest rates and no down payment requirements, making homeownership more accessible to veterans and active-duty military personnel.
While VA loans offer many benefits, navigating the loan process and being able to secure a VA loan can be complicated; this is where a mortgage broker comes in. Mortgage brokers are licensed professionals who can help homebuyers find the right loan product and lender for their needs.
Now that we understand what VA loans are, let’s explore why mortgage brokers like District Lending are veterans’ best allies when it comes time to secure a VA loan to buy or build a home.
1. Mortgage brokers have far more products available than a traditional bank
One of the main benefits of using a mortgage broker to secure a VA loan is that they have access to a network of lenders. Rather than going to individual lenders to see if they offer VA loans, a mortgage broker can connect you with multiple lenders, each with their own set of requirements and terms. This can save you time and hassle, as you can compare multiple options in one place.
2. You can receive invaluable advice from a knowledgeable professional
Navigating the VA loan process can be complicated, with specific requirements and eligibility criteria that need to be met. When you seek VA loans via District Lending, you’ll receive expert guidance on what documents and information are needed; they’ll also help you navigate any potential roadblocks that may arise. This can be especially helpful for first-time homebuyers or those who are unfamiliar with the VA loan process.
Mortgage brokers understand that you’re not just an ID number, and they’ll consider your specific needs
Every homebuyer’s situation is different, and a mortgage broker can help you find a loan product that meets your specific needs. For example, if you joined the military right out of high school, you might have little to no credit history because you weren’t accruing credit while on duty. This might disqualify you from many lenders, who have strict stipulations about what kinds of credit they will help.
However, a mortgage broker can help you find a lender that specializes in working with borrowers with lower credit scores. Or, if you’re looking for a specific type of loan, such as a fixed-rate mortgage, a mortgage broker can help you find lenders that offer that type of product.
You’ll have the strength of an expert negotiator on your side
Mortgage brokers have the power to negotiate with lenders on your behalf, which can help you secure a VA loan with a better interest rate or more favorable terms; this is especially valuable in a competitive housing market where multiple offers may be on the table. A mortgage broker can help you stand out by presenting a strong loan offer to the seller.
Complicated VA loan paperwork will be a breeze with a mortgage broker at your side
The process to secure a VA loan involves a lot of paperwork, from proof of military service to income and tax documents; even a few missing documents can push back the mortgage process by weeks or even months.
A mortgage broker can help you gather all the necessary paperwork and ensure that it’s completed correctly, which ensures that your paperwork is filed quickly and your mortgage breezes through the many steps toward completion.
Final thoughts
VA loans offer many benefits to eligible veterans and active-duty military personnel, but the process can be complicated. Working with a mortgage broker to secure a VA loan can provide many advantages, including access to multiple lenders, expert guidance, customized loan options, negotiation power, and simplified paperwork. If you’re a homebuyer seeking a VA loan, consider working with a mortgage broker to help you navigate the loan process and find the right loan product for your needs.