The Platinum Group, REALTORS®Weldon HobbsColorado Springs | REALTOR®
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Military, PCS & VA

How do I choose a lender for a VA loan in Colorado Springs?

ByWeldon HobbsTeam Hobbs RealtyPublished Last reviewed

Short answer: Choose a VA-approved lender with deep, current experience making VA loans, then compare official Loan Estimates from at least a few lenders. Any VA-approved lender can make your loan, but experience with VA rules is what helps you avoid problems with appraisals, property requirements, occupancy timing, and entitlement. The VA funding fee is the same at every lender, so compare the interest rate, the lender's fees, and how well they understand your situation. Also check each loan officer's license on NMLS Consumer Access.

Experience is the dividing line

The number one way to avoid challenges on a VA loan is to lean on people with experience. That's why I've only ever recommended experienced VA lenders. Every VA-approved lender can originate the loan, but lenders who handle VA loans regularly know the rules well enough to anticipate problems before they happen.

I think of good lenders as optimizers. They take your situation and figure out the best path for it. Every loan carries a different set of risks, because every buyer's circumstances are different. An experienced VA lender knows how to handle those circumstances.

What an experienced VA lender does for you

Finds the best structure for your money. For example, if you have cash to put down, a down payment of 5% or more lowers the VA funding fee. For a first-time VA purchase, the fee drops from 2.15% of the loan amount with less than 5% down to 1.5% with 5% or more down, and to 1.25% with 10% or more down. Whether that's worth it depends on how much cash you want to keep in reserve, and an experienced lender will help you run those numbers.

Knows the occupancy rules and their exceptions. VA loans are for homes you'll live in. VA generally considers moving in within about 60 days of closing to be a reasonable time, and there are documented exceptions for situations like PCS orders and deployment. A lender who knows these rules can tell you early whether your timeline works and what documentation you'll need.

Handles entitlement questions under pressure. If you've used your VA benefit before, how much entitlement you have available matters. An experienced lender knows how to restore or calculate entitlement, even on a tight timeline. In one of our transactions, a client sold their home in the morning, their entitlement was restored, and they closed on their new home the same day. That took a lender who knew exactly what was required and when.

Helps structure seller concessions. VA has specific rules for seller concessions and closing costs. An experienced lender can help figure out the best mix for your situation, and I work with whichever lender you choose to put that together.

Where your agent fits in

Your loan officer orders the VA appraisal. But the VA's minimum property requirements, the standards a home has to meet for a VA loan, are something I watch closely on the real estate side. I'm looking for the potential issues before they become problems and coordinating with the lender when something comes up. That's part of why having the right team in place matters: the professionals are ready to solve issues as they arise.

How to compare VA lenders

  • Confirm the lender is VA-approved and ask how many VA loans they close. Ask what VA-specific training or experience the loan officer has.
  • Get an official Loan Estimate from at least a few lenders on the same day, and compare the total costs, not just the advertised rate.
  • Check the lender's charges. VA limits what a lender can charge for its own origination costs. Many lenders charge a flat 1% fee, and if you don't understand a fee, ask.
  • Remember what's the same everywhere. The VA funding fee is set by VA and doesn't vary by lender. What varies is the rate, the lender's fees, credits, and service.
  • Verify the loan officer's license on NMLS Consumer Access, where you can also see any disciplinary history.
  • Ask about your specific situation, whether that's a PCS timeline, a prior VA loan, a home that may need repairs, or a plan to keep your current home as a rental.

How we recommend lenders

Team Hobbs Realty does not receive referral fees from any lender we recommend, and we have no affiliated businesses or ownership in any lender. If that ever changed, we would disclose it. Our recommendations are based on experience and results over time, and you're always free to choose your own lender. Whichever lender you choose, I'll work with them to get you the best outcome.

What could change the answer

Your best lender may depend on your specific situation: whether you're using your benefit for the first time, whether you have a service-connected disability that exempts you from the funding fee, whether you're buying remotely on PCS orders, or whether you plan to keep your current home. VA rules and fees can also change, so confirm current rules with your lender.

When to talk with a professional

Talk with a VA-experienced lender before you start touring homes, so your pre-approval reflects your real options. If you have questions about your entitlement or eligibility, your lender can request your Certificate of Eligibility and walk you through it.

If you're planning a VA purchase in Colorado Springs, let's talk through your timeline and your team before you start looking.

Related questions

About the author

Weldon Hobbs is a Colorado Springs real estate professional and co-founder of Team Hobbs Realty, affiliated with The Platinum Group, REALTORS®. He is a U.S. Air Force Academy graduate and retired Air Force officer who has been through VA purchases himself. He holds an MBA and the PMP, Certified Financial Coach, SRES®, and MRP (Military Relocation Professional) credentials. He is not a loan officer and works alongside lenders experienced with VA loans.

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