Why Should Mortgage Companies Be Veteran Friendly?
Veterans Affairs mortgages are gaining lot of traction lately. These mortgages that are available to military personnel and veterans can be secured without any down payment or minimum credit score requirement. These loans are given out by private lenders and are covered by Department of Veterans Affairs guarantee, as long as the basic guidelines are met. VA loans are cheaper because they do not need to be insured by mortgage insurance.
Why should a lender be veteran friendly? Because veterans have different requirements than regular civilian applicants. This is the reason it is important for the mortgage lender to gain full understanding of VA loans so that they can accommodate veteran applicant needs efficiently.
Let us take a detailed look in to why lenders should have provisions to cater to veterans.
Their Needs Are Different from Civilian Homebuyers
Veteran homebuyers have different needs, as compared to their civilian counterparts. For instance, for the veterans to qualify for VA loan, they should meet minimum property requirements such as easy access to the property, purpose of buying the property should only be for residential use, healthy living conditions like sanitation and heating, hazard free property etc. Only a mortgage company that is veteran friendly will be able to recognize this unique requirement and address these needs accordingly.
Lenders Need to be VA Approved
Qualified lenders need to be approved by Veterans Affairs before they can offer loans to military personnel. An approved lender will be able to offer expert guidance and help throughout the loan process to veteran applicants. It is important for the lender to stay up-to-speed with VA loan requirements so that they can answer all the questions regarding VA mortgage guarantee and more. The lender can also give an estimate of loan amount that the applicant will get based on their financial situation.
VA Friendly Lender Understands Time Limitations
A lender who is experienced in handling VA loans will know that veterans only have 10-days leave to look for a new home. Since active military members are always on the move, it is important that the lenders respect and understand these time limitations. By recognizing the importance of deadlines, lenders will be able to help veterans find eligible homes within the stipulated time frame. They can also help applicants get approved for VA loans fast, keeping the 10-day window in mind.
They Need Homes with Good Resale Value
Veterans or army personnel move homes more frequently than others. This is the reason they must invest in homes that can sell quickly and earn them good resale value. When these veterans come looking for loan assistance, a well informed lender can share important best practices for buying home and help them secure a good deal.
VA Lenders Can Offer Assistance to Struggling Borrowers
If the borrower who has taken out VA loan is unable to pay his mortgage regularly, then the lender can negotiate with VA to reach a middle ground. Discussing repayment plans, alternative to foreclosing and loan modifications with VA financial counselors can help lenders prevent losses due to borrower defaults.
In the mortgage industry that is riddled with high compliance costs and strict regulatory requirements, it is important to look outside conventional lending and get more borrowers into the fold. Business expansion is the key to staying profitable in lending business. While you focus on getting more clients, let Expert Mortgage Assistance be your outsourced mortgage partner. Our team of trained experts can provide wide range of mortgage services from loan origination to post closing. Call us today and let us help you make your business more cost-effective.