5 Ways To Get The Best VA Loan Rate

You’ve decided to leverage your military status and apply for a VA loan. It’s one of the best decisions you could make for yourself and your family, and you’ll want to research the best VA loan rates possible. So how do you get a great VA mortgage rate? Follow these five tips:

#1 Review Loan Types

Interest rates can vary depending on the type of loan you’re interested in, and the terms you choose. For example, refinance rates tend to be higher with a VA loan, just as they are with other home loan programs. You can typically get a lower interest rate with a 10- or 15-year mortgage (if you’re considering a 30-year home loan, the interest rates are typically higher because lenders assume more risk).

You may also find great rates with some of the lesser-known VA loans:

• Interest Rate Reduction Refinance (IRRRL): Streamline the refinance process, reduce the fees, and deal with less paperwork.
• Cash-Out Refinance: Turn equity into cash and make changes to your mortgage terms.
• Energy Efficient Mortgage: Add the cost of energy-efficient home improvements to your mortgage or refinanced loan.
• Native American Direct Loan: Native American military persons, veterans, and their spouses can access this program to improve, build or buy federal trust land homes.

#2 Research State Or Local Programs

All across America, there are often additional VA programs administered at the state or local level. These buyers’ assistance programs can make purchasing a home even easier and cheaper with lower rates (plus cash for down payments, appraisals, and closing costs). There are also state programs for regular civilians that military persons and veterans can qualify for, so look into those as well.

#3 Prepare Your Finances

When determining your financial eligibility for a mortgage, banks will look at your credit score and debt-to-income ratio. Spend some time lowering your debt-to-income ratio, which, in turn, may increase your credit score. It’s also a good idea to review your credit report for discrepancies and address any outstanding delinquencies.

#4 Make A Down Payment, Even Though It’s Not Required

You can use your VA loan to purchase or refinance a house with no down payment, which is one of the top benefits. But you can also decide to put money down if you like. The higher your down payment, the higher your chances of scoring a great VA loan rate. You may also qualify for a higher loan amount, which expands your options during home searches.

#5 Look For The Best VA Loan Rates

The best way to score low interest rates and other favorable loan terms is to shop around. It’s a good idea to get quotes from banks but look at more than just the final number when making a decision. For example, in a competitive market, you’ll want a bank that’s known for a fast closing process time.

Connect With Our VA Loan Experts

Are you ready to secure some of the best VA loan rates in the nation at National Home Loans? We’re committed to providing a personalized and hassle-free experience. Request your rate today.