Two veterans with nearly identical finances both apply for a $350,000 VA loan with Veterans United. One is quoted 6.375%, the other 6.75%. The higher quote isn’t a mistake or a penalty – it’s the result of a few missing steps that can change your rate by a quarter percent or more.
This guide walks through those steps, using concrete numbers, so you can see exactly where the difference comes from and how to get the best rate Veterans United will offer you.
Step 1: Know the levers that move your rate
Your rate isn’t pulled from a hat. Lenders adjust it based on a handful of hard numbers:
- Credit score – higher scores get lower rates, and the jumps happen at certain tiers (usually 620, 660, 700, 740)
- Debt-to-income ratio – the lower, the better
- Loan purpose – buying a home is priced differently than refinancing
- Occupancy – owner-occupied homes get better rates than investment properties
- Discount points – paying points upfront brings the rate down
For example, a borrower with a 740 FICO score might see a rate of 6.50%, while a borrower with a 680 score might be quoted 6.75% on the same loan amount. That 0.25% difference adds up: on a $350,000 loan, it’s about $59 per month, or $708 per year. The fix? Pull your credit reports and dispute any errors before you apply.
Step 2: Get your Certificate of Eligibility first
Before any lender can give you a meaningful rate quote, you need to prove you’re eligible for a VA loan. The Certificate of Eligibility (COE) is a simple document you can request online in about 10 minutes. With your COE in hand, Veterans United can give you an accurate estimate instead of a generic one.
If you’re new to the whole process, our step-by-step guide to getting a Veterans United VA loan walks you through the whole path, including what to do if your COE gets delayed.
Step 3: Compare at least three lenders
Veterans United is a great lender, but it’s rarely the only lender that can handle a VA loan. The key is to get an official Loan Estimate (the standardized 3-page form) from three different lenders on the same day, because rates change daily. Compare the same loan amount, same term, same points, and same closing date.
I’ve seen borrowers save $50 a month simply by showing Veterans United a competing estimate and asking them to match it. If you’re not sure how to evaluate the lenders on your list, our guide to choosing a VA mortgage lender follows a real borrower through the selection process, with the exact questions to ask.
Step 4: Do the math on points and APR
Here’s where the real money is saved. When a lender quotes a rate, they’ll also quote the annual percentage rate (APR). The APR includes the interest rate plus most of the upfront costs, so it’s the truer cost of the loan. But even the APR hides the impact of discount points.
Work the numbers with a real example
Say you’re borrowing $350,000 with two offers:
- Loan A: 6.50% interest rate with 1 point (cost: $3,500)
- Loan B: 6.75% interest rate with no points
Your monthly payment is $2,212 on Loan A and $2,271 on Loan B, a difference of $59 per month. To decide if that point is worth it, divide the cost by the monthly savings: $3,500 ÷ $59 = about 59 months. If you plan to stay in the home more than 5 years, paying the point makes sense. If you might move sooner, skip the point and keep the cash.
If you want a deeper look at how these numbers are calculated and where lenders like Veterans United make their money, our separate breakdown of Veterans United mortgage rates explains the pricing structure in detail.
Step 5: Lock your rate when you see a good deal
Rates move every day, sometimes every hour. If you find a rate that works for your budget, don’t wait weeks to lock. Ask your loan officer what lock periods are available – commonly 30, 45, or 60 days. A longer lock usually costs a bit more, so match it to your expected closing date.
Some lenders, including Veterans United, offer a float-down option that lets you lower your rate if the market improves before closing. The catch is the option typically costs money upfront, so only choose it if you believe rates will drop in the coming weeks. If you’re unsure about the timing, our guide to VA mortgage rates today can help you read the market.
Step 6: Ask about lender credits and discounts
Your rate quote isn’t set in stone. Veterans United has been known to offer lender credits for things like setting up automatic payments or banking with them. In exchange for a higher interest rate, the lender can credit you thousands toward closing costs.
That’s a useful option if you’re short on cash at closing. For example, a rate increase of 0.25% could net a $2,500 lender credit on a $350,000 loan. You’ll pay about $59 more per month, but if you keep the loan for 42 months or less, you actually come out ahead. Don’t be afraid to ask what’s available – the worst answer is no.
Step 7: Re-check everything before closing
The final step is often ignored: reviewing your final closing disclosure to make sure the rate and fees match the Loan Estimate you signed. A change as small as an incorrect origination fee can cost you thousands over the life of the loan.
If you’re working with Veterans United and want a complete walkthrough of the closing process, you can follow our 7-step Veterans United closing guide to avoid the last-minute pitfalls most first-time buyers hit.
Once you’ve run these steps with your own numbers, you’ll know whether the rate Veterans United offered you is worth locking. That’s the real goal: not chasing the lowest number, but finding the rate that fits your timeline and your budget.