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So far in the series "How to Get a VA Home Loan" we have explained who is eligible for the loan, how to get a certificate of eligibility and the VA funding fee. Today's article will offer suggestions on choosing a mortgage loan officer. Veterans have numerous options for choosing a mortgage lender. These options fall into three categories.

• Credit union, local bank or national bank - The availability of a VA loan is typically limited with this group. The additional paper work as well as the costs to being an approved lender keeps many of these "traditional" lenders from participating in VA home loans. Furthermore, the only requirements for the loan officers come from the bank or credit union and not the VA. These loans are usually sold to other investors.
• Mortgage lender - Loan officers that work for a mortgage lender must be licensed and have to pass specific state and national tests in order to retain their license. The actual lender that will ultimately purchase the VA loan reviews and underwrites the loan before it is approved.
• Corresponding lender - This type of lender is a blend between the banks and the mortgage companies. The correspondent lender has the option of using their own mortgage underwriters to authorize a loan and then subsequently sell it to investors. On the other hand, a good correspondent lender will have relationships with other investors that can underwrite and authorize loans. This additional outlet for loans provides the lender to offer excellent rates and terms to the borrowers.

When deciding on a loan officer, review the information from the previous installments. Ask your potential lender a question about one of these items to see how they answer. Make sure that your loan officer knows more about the process than you. If all they have to offer you is a good rate and low fees, you may not necessarily get the loan if the loan officer does not understand the VA process.

After you have chosen a loan officer you can go through the normal steps of qualifying for a loan. Get a range for payment amounts based on different mortgage amounts. Use this information to decide your comfort level for the monthly payments.

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