You’ve read it here and heard it elsewhere but it can’t be stated enough—only work with a loan officer and mortgage company experienced in VA loans. Most every mortgage company may offer a VA loan but rarely close one, instead relying on FHA or conventional mortgages. Here are three reasons to find the best VA lender you can.
VA Disclosures When you send a VA loan application to an inexperienced lender the loan officer will ask for the standard punch list of documentation. There are certainly standard disclosures that all loans will have but VA loans have an additional set of their own. Once the file is sent to the underwriter, this after a couple of weeks of processing time, after a few more days you could get a phone call asking you to sign still more papers, the ones that were supposed to have sent initially. If it’s crunch time and your closing is looming, this can add up to a week to your closing.
VA Guidelines A loan officer not familiar with VA loans may overlook required guidelines or not be aware of them at all. There are several approval requirements that are unique to VA loans and you could be approved initially only to find out later there was something that keeps you from being approved. For instance, there isn’t enough residual income for an approval.
Forcing a Change Working with an inexperienced lender might force you to switch lenders midstream. However, a lender can’t simply transfer a completed file to another. You’ll need to document your new application, sign a new set of disclosures, a new appraisal and order a new certificate of eligibility. You may not have enough time to switch lenders when you discover your loan is being handled poorly.
It takes just a few phone calls and referrals to find a lender experienced with VA loans and a loan officer with a long history working with veterans. Don’t just choose any lender—you need to find the very best.