www.knowyouroptions.com

www.knowyouroptions.com
I'm going to start this article off by telling you what may be the number one mistake veterans make when choosing their VA Lender (other than not doing enough research)...letting their realtor persuade them to use their preferred lender. BIG mistake! Those "so called" lenders may be good at certain products, like FHA loans or alternative type loans, but generally they don't have the level of experience that more qualified Banks might have AND they generally charge HUGE origination fees and often times other fees that VA considers "non-allowable" making an offer to purchase a house less attractive to the seller as, very often, the Realtor and his/her "preferred" lender have the contract drawn up to push those fees on the seller instead of the lender as required by VA.
So when doing research on other lenders, what should you look out for?
Here's a checklist you need to keep in mind before going out on your VA Lender search:
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1. The type of VA lender makes the difference. What I mean by that is this - Is the lender a bank, a mortgage/finance company or a broker? Generally, you're going to find that a bank will offer up lower fees and some banks actually charge NO Fees for their VA Loans.
2. Where is the processing, underwriting and closing departments in relation to one another? This is a good question because it could be the difference in meeting a closing date or not when time is saved by having all facets of the process under one roof. This will allow you and your Loan Officer to know exactly where your file is at all times and cut down on undue stress during the process.
3. How many years has your Loan Officer originated VA loans? VA Loans have become one of the premier loans for veterans now that 80/20 loans have fallen off the shelves and because of that, lenders and Loan Officers have scrambled to jump on the VA bandwagon...these same Loan Officers who were bashing VA Loans because they didn't have the product to offer. 
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5. Is the VA Loan Lender a LAPP Lender? This is important as it could be the difference between getting a lower rate in the end and paying less or the alternative. L.A.P.P. stands for Lender Appraisal Process Program. VA appraisals go through a 2nd level review to confirm the value the appraiser assigned it. If the VA Lender is a LAPP lender, they have been given approval by VA to review the appraisal and issue the NOV (Notice of Value). This may not seem like much but what most veterans don't realize is, there are lenders across the country that are not given this right and guess who has to issue those NOV's? Yes, VA does. So knowing that VA has to do all of those appraisal reviews for all of those lenders, would it be safe to say that would take more time? Of course. Having a LAPP Lender handle your VA loan for you could save you a week and up to a week and a half off of your processing time. With most interest rate locks being 30 days, can you see what might happen? You are taking a bigger chance with a non-LAPP lender that you could lose your interest rate or at the very least, have to pay to have the rate extended, which could be up to.5% of your loan amount or more, depending on the lender.