How to Get the Best Mortgage Deal as a Veteran

Buying a home is part of many people's American dream, and perhaps even more so for veterans of our armed forces. U.S. Census data reported by the Military Times showed that 80% of veterans owned homes, compared to 60% of the rest of us. This is probably due to the availability of the VA mortgage program, which can get veterans into houses for less money.

Let's take a look at a few ways to ensure you're getting the best deal possible if you're looking to buy a home as a veteran.

Consider all your loan (and program) options

The Department of Veterans Affairs guarantees VA loans, and they're offered by regular mortgage lenders. This means they're easier to qualify for, since the federal government is backing up the loan, meaning the lender isn't taking on as much risk of loss. Plus, these loans come without the mortgage insurance you'll pay for an FHA loan or a conventional loan with a smaller down payment.

You don't have to make a down payment for a VA loan, and instead pay an upfront funding fee (which varies based on how many times you've used this type of loan and whether you are making a down payment -- even if a down payment isn't strictly required, it's good to go into a home purchase with some equity).

If for whatever reason a VA loan isn't a fit for you, you still have options. Conventional loans and FHA loans both have lower down payment requirements, depending on your credit score. And if you live in a qualifying rural area, a USDA home loan might be an option for you. Your state might also have programs designed to help you get into a home for less, so this is worth exploring as well. Click on over to your state government's website for more details.

Shop around for a lender

No matter what type of loan you decide to go for, it's crucial that you speak to a range of lenders to get available mortgage rates based on your specific financial situation. That's right -- apply for multiple pre-approvals. And yes, this can impact your credit score, but if you do all your rate shopping within two weeks, the hit to your credit will be minimal, as multiple mortgage inquiries over a short period counts as just one -- handy! Speaking of your credit score, it's worth checking yours ahead of time to see if it needs work. Some mortgage types (and lenders) require a certain minimum credit score to qualify.

Start with The Motley Fool's Ascent's guide to the best VA lenders if you're opting for this type of loan. Our list of the best mortgage lenders, period, also features lenders that offer many different types of loans, including VA, FHA, and USDA.

And don't forget to look into different mortgage terms that might be available to you -- for example, an adjustable-rate mortgage starts with a lower rate than what's commonly available (handy right now, at a time when the average rate on a 30-year fixed loan is 7.17%). Or if you're comfortable with a larger monthly payment, you stand to save a ton on interest if you can go for a shorter mortgage term than 30 years, such as 15 or 20 years.

Explore different types of lenders, too. Don't assume the best deal will be found offered by a big national bank or a big-name online lender that advertises on podcasts -- your local credit union could have an excellent rate for you. And depending on your particular real estate market, your financing might really matter. I'm not a vet, but when multiple real estate agents with three and four decades of experience in my local area told me that sellers were less likely to consider offers backed up by online lenders in this competitive market, I opted for a credit union for my mortgage.

Buying a home isn't really easy for anyone these days (unless you are rich and can plunk down all cash on a home purchase!). But that doesn't mean we can't take the steps necessary to save ourselves some money along the way. You served your country, and if buying a home is important to you, use these tips to find the best deal.