When you start shopping for a car, you might be more concerned with additional features and specialty paint jobs than you are about the monthly bill. Unfortunately, the wrong financing can cost you dearly. Compound interest never sleeps, which means that you might be paying much more than you should if you work with the wrong lender. I want to help you to make great financial decisions, which is why I created this website. However, if you can remember a few tricks and keep those payments to a minimum, you can drive away with the car of your dreams without breaking the bank.
Have you ever served in the U.S. military? If so, you might qualify for a VA home loan. VA home loans are excellent options for people who want to buy homes, and you can apply for one through most lending institutions. VA loans offer competitive terms to borrowers, and they are affordable. If you want to get the best terms possible with a VA loan, you might want to know how. Here are several ways to get better terms when buying a house with this loan program.
Work on Your Credit
While you do not need perfect credit to qualify for a VA loan, your score will affect your terms. Lenders who issue VA loans might set up criteria for credit scores and other aspects, which might vary. In most cases, you can get a VA loan if your score is 620 or higher. If you have a low credit score, it might be worthwhile to improve it before applying. Even if a lender will offer you a loan with a score of 620, you will likely qualify for a lower interest rate with a higher score. A higher score always improves your loan terms and makes getting a loan less challenging.
Put Money Down
The second thing you can do to get the best terms on a VA loan is to put money down. Lenders might agree to issue VA loans without requiring money down, but you will pay extra if you do not have a down payment. One way you will pay more is through the funding fee.
Anyone that borrows money to buy a house through a VA loan pays a VA funding fee. The funding fee varies by several factors, and one factor is the down payment a person puts down on the purchase. If you put at least 10% down, you will pay a 1.4% funding fee. If you put no money down, you might pay a rate of 3.6%. While you pay this funding fee only once, the percentage variations make a big difference.
Compare Fees by Lenders
The third tip to help you get the best terms is by comparing the fees that lenders charge. Every lender can determine their own fee structures, and you can save money if you compare these and choose the one with the lowest fees. If you have any questions about VA home loans, call a lender today.
For more information, contact a company like Lund Mortgage Team.Share