I just returned from a seminar on VA Lending in Atlantic City, NJ.  I learned some valuable information that I like to pass onto you concerning how savvy mortgage lenders market their services to you, the Vet. 

The majority of the lenders, who process and approve VA loans are honest. The small minority of those lenders use tactics to get you in their door because they do not know how to honestly advertise to you.  They use several types of deceptive practices.  If you come across any of these deceptive devices call the Veterans Administration Loan Center and report them.  They will be fined and could lose their rights to lend to Vets. 

Lenders cannot use the VA logo on any letterhead giving you the impression it is official business from the VA.  This is ethically wrong and deceptive.  The VA administration does not partner with mortgage lenders in advertising. 

Another deceptive vice used is how the envelope looks. Sometimes you might see a picture of a soldier with the words written in bold type "Veteran Services Administration" or "Veterans Loan Processing Center", and/or "Veterans Benefits".  This is very deceiving since the VA Loan Center will never send out these types of mailers. If the VA was to send any type of letter it would be in an official business envelope on their letterhead. 

In the letter itself some of these unethical mortgage lenders will put "we have a special relationship with the VA" or "have an exclusive...". This is not true.  The VA does not allow exclusive agreements. 

Some lenders will make statements on receiving cash back on an Interest Rate Reduction Refinance Loan program when in fact the program is a streamline refinance program and does not allow you to receive cash.  Another deception some lenders advertise stating you can miss 2 payments on an IRRRL. If you miss 2 payments on your loan it will lower your credit score and be reported late.  Do not listen.

Some will advertise an interest rate that may only give you an 1/8th percent lower than your current rate.  This rate will most likely not save you money on your monthly payment. It could cost you more in the long run.  Unless you reduce your loan term with the interest rate. 

Allied Mortgage Group cares about our veterans and will not give you false information on VA or any other type of loan programs.  We have experienced loan professionals that are committed to long term relationships with our clients.  To learn more about VA Loan programs click on "Special Programs" tab and move your cursor over to VA FAQ.  If you still have questions or want to get prequalified call us at 215-355-5626.

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This policy is valid from 15 March 2010

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