Lower Closing Costs Lenders generally charge underwriting, processing, and documentation fees on all of their loans, but VA borrowers cannot pay those fees and the lender or seller may be required to pay them on behalf of veterans. Once you move into the house, you will own a 100% funded property. When the VA funding fee is added to the loan amount, you will actually be in a negative equity position right from the start. In reality, however, VA loans close at almost the same rate as conventional loans and at a slightly better rate than FHA mortgages.
They start by getting a buyer's agent who knows everything about VA loans and a lender that can be easily accessed by publicly traded agents. However, it's ideal to discuss your unique circumstances with a lender who is well-versed and experienced in VA loans. Because your lender assumes less risk compared to a conventional loan, VA home loans are relatively easy to obtain. And today, on Veterans Day, his company is releasing a study that finds a wide disparity in VA loan rates from different lenders.
For example, when two married veterans want to buy a home, they often have to divide their rights and lenders have to get approval from a regional VA loan office, which takes longer. He says lenders often release products for veterans other than VA loans that are better for the bank, not the borrower. This is why it's so important to work only with lenders who conduct a substantial amount of VA loan business.
