How to Compare VA Home Loan Options in Colorado Springs
Buying a house is an exciting process, but finding a way to pay for it can be confusing at best. Unless you plan on paying for the house in cash up-front, you’ll need to find a way to finance the purchase. Shopping for a VA home loan in Colorado Springs isn’t as tough as you might think. You just need to be able to compare your options. Here’s what you need to know to make sure you get the best rate possible.
Figure Out the Right Loan Type
Even within the broader category of VA home loans, there are different options available to you. Think about the type of VA home loan you want for your Colorado Springs house. For example, do you want a fixed-rate mortgage that locks in an interest rate for a set number of years or are you willing to deal with a variable interest rate if it gives you lower monthly payments? How long do you want the loan to last? The longer the loan period is, the lower your monthly payments will be, but the more interest you’ll pay over the life of the loan. Once you identify those terms, you can start looking at your options.
Compile Your Quotes
Every lender, even those offering a VA home loan, will have slightly different interest rates. These rates are determined based on your monthly income and monthly expenses. However, some lenders may also require certain minimum credit scores or have a maximum debt-to-income ratio you’ll have to satisfy to qualify for a loan in the first place.
The best thing to do is shop around and get information from different lenders. Ask for their rates based on the type of mortgage you’re looking for. This way, you’ll only get quotes for loans you’re actually interested in.
Look at the Terms In Detail
When choosing a VA home loan in Colorado Springs, you’ll need to focus your comparison on the interest rate and the lender fees. Every VA home loan will have the same VA fee—this is standard and can’t be negotiated. But the lender fees often can be negotiated. These fees include the loan origination fee and the closing costs. Different lenders will offer different fees and it’s all based on what they consider to be standard. The lower the fees, the better it is for your wallet.
You’ll also want to look at each annual percentage rate (APR) for every loan you’re considering. The APR is the combination of the lender’s fees and the interest rate. The higher the number, the more you’ll end up paying over the life of your VA home loan. This means even if the fees are higher, you could end up getting a better deal in the long run.
Get the Best VA Home Loan for Your Needs
At Mortgage Solutions Financial, we believe you deserve to get into the house of your dreams. Let our experienced mortgage pros help you find the perfect VA home loan for your Colorado Springs home purchase. Call today to get started.