Buying a home is one of the biggest decisions you’ll ever make, and veterans have a great advantage with VA loans. But choosing the right lender is crucial for getting the best deal.

This checklist will guide you through what to look for in a VA loan lender, ensuring you’re fully prepared to make the best choice for your financial future.

1. Lender Experience with VA Loans

When it comes to VA loans, not all lenders are created equal. You want to work with a lender who has deep experience in handling VA loans and understands the unique challenges veterans face. Some lenders may specialize in VA loans, which makes the process smoother and faster for you.

• Ask for lenders who specialize in VA loans.
• Inquire about how many VA loans the lender processes annually.

“Veterans deserve a lender who knows the VA loan system inside and out,” says Michael Greene, Senior Mortgage Consultant at Veteran Home Loans USA. “A lender who is familiar with the process will make sure everything goes smoothly and without unnecessary delays.”

2. Check Interest Rates and Fees

Interest rates can make or break the deal when choosing a VA loan lender. Even a slight difference in the rate can amount to thousands of dollars over the life of the loan. It’s critical to compare rates from multiple lenders.

• Compare interest rates from at least three lenders.
• Look for any hidden fees that could inflate the cost.
• Be sure to compare the full cost of the loan, including fees.

Lender	Interest Rate	Fees
Lender A	3.25%	$2,000
Lender B	3.50%	$1,800
Lender C	3.40%	$1,600

Also, watch out for fees like origination charges or appraisal fees, which can add up quickly. Be sure to check out Bankrate’s VA loan rates page for current rates.

3. Understand the VA Funding Fee

One of the few costs associated with VA loans is the VA funding fee, which helps maintain the program. The fee can range from 1.25% to 3.3% depending on factors like whether this is your first VA loan or you’re using it again.

Scenario	VA Funding Fee
First-time VA loan, no down payment	2.15%
Subsequent VA loan, no down payment	3.30%
VA loan with 10% down payment	1.25%

Be sure to ask if your lender allows this fee to be rolled into the loan or paid upfront. More information on the VA funding fee can be found on the VA’s official site.

4. Customer Service and Support

The home-buying process can feel overwhelming, especially if it’s your first time using a VA loan. That’s why responsive customer service is essential. Make sure your lender is transparent and communicates clearly, keeping you informed at every stage of the process.

• Check online reviews and testimonials to gauge a lender’s customer service.
• Ensure you have a direct point of contact within the lender’s team.

According to James Larson, Director of Home Finance at American Veteran Mortgages, “Veterans need to feel supported and confident throughout the VA loan process. A lender with strong customer service can make a big difference.”

5. Veteran-Specific Discounts

Some lenders offer discounts or special terms for veterans, such as lower fees or reduced closing costs. These discounts might not always be advertised, so it’s worth asking your lender about any possible perks.

Lender	Discount Offered
Lender A	Reduced origination fee
Lender B	Waived appraisal fee

State-specific veteran programs like the Texas Veterans Land Board also offer excellent deals on VA loans.

6. Pre-Approval Process

Getting pre-approved is an important step that can help streamline your home-buying process. Pre-approval shows sellers that you’re serious and financially ready. Look for a lender that offers an easy and quick pre-approval process.

• Ask if the lender offers a streamlined pre-approval process.
• Have all financial documents ready for review.

Once you’re pre-approved, you’ll have a clearer picture of what you can afford, giving you more confidence during your house hunt.

7. Transparent Loan Terms

When discussing VA loan terms with a lender, make sure they are upfront and clear about everything—interest rates, fees, repayment schedules, and the total cost of the loan. Knowing exactly what you’re getting into can help you avoid any unpleasant surprises.

• Ask for a breakdown of all loan costs in writing.
• Be sure you understand the repayment terms and how changes in interest rates could affect your monthly payments.

8. Access to Additional Loan Programs

VA lenders often offer additional services like the Interest Rate Reduction Refinance Loan (IRRRL) and cash-out refinancing options. Be sure to ask about these programs if you’re looking to refinance your current VA loan or access equity in your home.

• Ask about the IRRRL program for future refinancing.
• Inquire if cash-out refinancing options are available.

For more information on VA refinancing options, check out the VA’s home loan refinance page.

9. Flexible Credit Requirements

Even though VA loans tend to have more lenient credit requirements than conventional loans, different lenders may have their own criteria. Some lenders are willing to work with veterans who have less-than-perfect credit, especially if they have other strong financial qualifications.

Lender	Minimum Credit Score
Lender A	580
Lender B	620

If your credit score is lower than the required minimum, don’t be discouraged. Many lenders specialize in helping veterans improve their credit and secure a VA loan.

10. Closing Speed

If you’re moving quickly, like during a military relocation, finding a lender who can close fast can be a game-changer. A lender with experience in VA loans will know how to speed up the process.

• Ask how long the typical closing process takes.
• Inquire if expedited services are available.

On average, VA loans take 30-45 days to close, but some lenders can close even faster depending on your situation.

FAQ

What credit score do I need to get a VA loan?
Most VA lenders require a minimum credit score of 620, but some offer loans with lower scores.

How do I apply for a VA loan?
Start by requesting your Certificate of Eligibility (COE) from the VA. Then, choose a lender who specializes in VA loans to guide you through the application process.

Do I need a down payment for a VA loan?
No, one of the major benefits of a VA loan is that it doesn’t require a down payment for eligible veterans.

Are VA loans easier to qualify for than conventional loans?
Yes, VA loans are typically easier to qualify for due to more flexible credit and income requirements.

What are VA loan funding fees?
The funding fee is a one-time payment to help cover the cost of the VA loan program. This fee varies based on your service history and down payment.

Can I refinance a VA loan?
Yes, the VA offers a streamlined refinancing option called the Interest Rate Reduction Refinance Loan (IRRRL).

Are there limits on VA loan amounts?
VA loans have no loan limits, but most lenders set a maximum based on your income and financial health.

How long does it take to get approved for a VA loan?
Approval times vary, but a typical VA loan approval process takes 30 to 45 days.

The Bottom Line

Choosing the right VA loan lender can have a significant impact on your home-buying experience as a veteran.

By understanding the lender’s experience, comparing rates, fees, and terms, and evaluating customer service, you can ensure you’re making the best financial decision for your future.

Remember to consider the VA funding fee, closing speed, and any special veteran discounts offered by the lender. By doing your homework and following this checklist, you’ll be better prepared to navigate the VA loan process with confidence and secure the home of your dreams.