How to Know You're Getting a Good Deal with Your VA Lender
When it comes to buying a home or securing a cash out loan using your VA loan benefit, it's crucial to work with a reputable and experienced lender that you can trust. The VA loan program is a great way for veterans to achieve their dream of homeownership or access their home’s equity as cash. Here are 5 things to look for to ensure you're getting a good deal with your VA lender:
1. Look for a Lender that Specializes in VA Loans
When choosing a lender, it's important to look for one that specializes in VA loans. Not all lenders have extensive experience with the VA loan program, which can lead to delays, mistakes, and other issues. A lender whose main focus is VA loans will have a deep understanding of the program's requirements and nuances, which may give you a better chance of having a smooth and efficient process.
For example, because NewDay USA focuses on VA loans, getting you the best possible results is built into every stage of the process. Your mortgage representative at NewDay USA will guide you step by step through the process from application to closing, helping you understand documents, what you need to be eligible, which loans you may qualify for, and more.
2. Compare Rates and Fees
One of the most important factors to consider when choosing a VA lender is the interest rate and fees. You want to make sure you're getting a competitive rate and that the lender isn't charging excessive fees. Be sure to compare rates and fees from multiple lenders to ensure you're getting the best deal possible. This means getting quotes from multiple sources, but the extra time spent could pay off if you end up finding a better deal as a result.
3. Choose a Lender that Offers Outstanding Customer Service
Choosing a lender that offers outstanding customer service is crucial. You want to work with a responsive, transparent, and helpful lender throughout the process. If you’re buying a home, look for a lender that has a dedicated Homebuying Team available 24/7 (a service that NewDay USA offers to our Purchase customers because we know you can be shopping for a home anytime, especially after work or on weekends) to provide expert advice and support. A lender that cares about your success and is committed to serving veterans is an excellent choice.
4. Look for a Lender Willing to Take on Upfront Costs for You
One reason NewDay USA stands out as a VA loan provider is that we aren’t afraid to go the extra mile for veterans. At the instruction of Admiral Lynch, we deliver a VA loan process that helps veterans access VA loans with no upfront out-of-pocket costs for a VA appraisal, termite inspection, or water test. Instead, you can roll the cost of appraisals, termite inspections, and water tests into the total amount of your loan and pay them off gradually. We offer this for both our Zero Down Purchase Loan and 100 VA Cash Out Loan customers so that you can utilize your VA loan benefit hassle-free without all the usual burdens and stress. Just know that you will incur costs if the appraisal is transferred to another lender.
The cost of an appraisal in the US can vary widely depending on the location and size of the property. According to the VA Appraisal Fee Schedules a single-family home VA appraisal can range from $525-$1300 depending on state and county.
The cost of a termite inspection also varies depending on the location and the size of the property. The average termite inspection cost in 2022 for funded loans by NewDay USA that required a pest inspection was $121.60. Additionally, the average water test cost for funded loans by NewDay USA in 2022, that required a water test, was $146.85 All up with NewDay USA, you could save several hundred dollars in upfront costs that can instead be rolled into the total loan amount so that you can pay them down over time.
5. Check Their Customer Satisfaction
It's crucial to look at a lender's reputation before hiring them. Buying a home is one of the most important decisions we make in our lives. As is deciding to access a cash out loan. It’s important to choose the right lender so that you can enjoy life’s moments and milestones knowing that you made the right choice. Seek feedback from other veterans who have used a lender’s services. Look at reviews and testimonials online.
NewDay USA, for example, has over 7700 reviews on Trustpilot, a well-known and highly reputable third-party website that collects reviews for all kinds of service businesses. Trustpilot is a relatively new company, having only launched in 2007, so it only captures a fraction of the fruit of our labor serving veterans. NewDay USA has served more than 100,000 veteran families across 43 states in its 20+ years in veteran mortgage lending.
All in all, when it comes to working with a VA lender, it's important to do your research and choose a reputable lender that specializes in VA loans, has a good reputation, offers competitive rates and fees, and provides outstanding customer service. NewDay USA is an excellent example of a reputable VA lender that meets all of the criteria you want to see in your VA mortgage lender.
Thank you for taking the time to read our blog on how to know you're getting a good deal with your VA lender. If you're a veteran interested in exploring your VA loan options, we encourage you to contact NewDay USA or apply online. We’re here to provide expert loan advice and support throughout the entire loan application, closing, and even home buying process if you’re working with us to secure a NewDay USA Zero Down Purchase Loan. Let us help you determine your eligibility for a VA loan today.
Give us a call at 800-405-4187 or apply online at newdayusa.com.
Colten Drawbaugh-NMLS#2176305 NewDay USA-NMLS#1043