When you apply for a VA home loan, you’ve obviously made a decision to buy a home using your VA home loan benefit or refinancing an existing VA loan. The decision is completely yours. And there will be multiple decisions made as your loan application is being processed, but who makes which decisions? Which decisions are you responsible for?
We’ll go past the initial decision you made when choosing your VA lender. You got some referrals and compared different VA lenders and selected the lucky VA lender. Your next decision that you must make is the type of mortgage that’s best for you. Fixed or adjustable? If it’s fixed, do you want a 15, 20 or 30 year term? If it’s an adjustable, how long would you like your initial fixed rate period to be? Three years? Five?
Once you pick out your loan program, it’s up to you to select your rate from the available offerings. Should you pay a point to get a lower rate? No points? How about taking a slightly higher rate and take a lender credit toward your closing costs? And finally, once you make that decision, should you lock in your rate or should you wait? So far, all decisions are yours and yours alone. Your loan officer will guide you along the way, but ultimately it’s you who will decide.
The lender’s primary decision is whether or not to approve your loan. The lender will also review your VA appraisal and decide whether or not the appraisal supports the value. Those are both major decisions the lender makes and they do so independently of anything you say or do. They review what’s provided, then decide.