Home Buying in Rockford>Question Details

 James, Real Estate Pro in Rockford, IL

I am using a VA Loan in Rockford, IL. I was told the rate would be 6.375. I thought this was high, but was

Asked by James, Rockford, IL Tue May 20, 2008

told that VA loans are harder to do and thus the reason for the higher rate. Anyone have any input here? Thanks

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Sean Cochran
Quality Mortgage Lending
0 votes Thank Flag Link Fri Jul 18, 2008
The rates are changing constantly. Are you set on the VA loan? I work with a few lenders in the Rockford area that have many programs to choose from. I would check all of your options available, according to your credit score, employment history, debt ratios, etc.
If you have any further questions, please feel free to call me!
Rebecca Adams
Keller Williams Realty
0 votes Thank Flag Link Thu Jun 5, 2008
Call me if yould like a second quote, I work for a bank and I can do VA mortgages in IL... And provide you good service and can beat that rate as of now. You might also find my closing costs to be a lot cheaper!

Brent Bester
Mortgage Professional
0 votes Thank Flag Link Tue May 20, 2008

That rate does seem a little higher than the average VA rates are what I'm looking at today. I would call around and compare your VA rates and closing costs with 3 different banks, credit union or mortgage brokers. Get 3 different goodfaith estimates and compare rates and cloisg costs. But yes that rate Is a little higher than what I am seeing as of today. But it's the the ballpark.

As for the rate being higher because the loan is harder to do, that is flatly false. if you are working with a mortgage broker they can control the rate to make a yeild spread premium (YSP) off of the back end. Essentially increasing the base rate of the loan to earn more money. Usually its .25% for 1 percent of the loan amount.

I would go to a bank that offers VA loans and get a GFE their. I would try getting them in three different places. Let me know If I can help out further.

Brent Bester
Mortgage Professional
0 votes Thank Flag Link Tue May 20, 2008
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