Q. Want to increase VA loan volume?
A. With the average loan amount at $253,000, the 2016 VA lending volume hit $179.1 billion — with a majority of the growth coming from purchase loans (as opposed to refinancing).
VA Loans are easier to obtain because they are government backed, and do not require private mortgage insurance. Of course, the flexibility of the loans (low or no down payment requirements), means they are more competitive.
This is where opportunities exist for a mortgage lender to increase VA loan volume.
It starts by getting VA Mortgage Lender Approved – Getting approved for a VA Loan isn’t just about the buyer; mortgage lenders should be approved by the VA to work with veterans. Because homebuyers seeking VA Loans seek that specific designation, it’s important for lenders to have the right credentials.
Understanding the intricacies of VA loans makes it easier to secure more customers, and provides a better process in return for those customers. Mortgage lenders must be prepared to guide customers through the VA loan application process, including what paperwork is needed to confirm their veteran status, and what type of credit is required for a loan.
There’s still a resource and educational gap in the VA loan application process, which is where mortgage lenders can serve as a trusted resource. That alone can help drive more potential mortgage customer leads.
To increase VA loan volume, RatePlug provides agents and lenders with a dashboard that displays properties prequalified for VA financing in addition to USDA, CRA, and in select markets, FHA.
These services can also be used to leverage affordability and VA Loan eligibility. Because RatePlug’s technology is fully integrated within the MLS, it has the ability to identify all properties in the market for VA eligibility. Lenders rates and products are used to calculate a monthly cost to own affordability calculation with PITI, and where applicable, HOA fees.
When educating potential VA loan applicants, it’s also important for mortgage lenders to be realistic with their buyers about what types of loans, and how much the potential homebuyer can qualify for. Misleading a buyer about how much they may be approved for will push that customer away, and harm your referral potential.