Look for eight things when choosing a VA mortgage loan lender: VA-approved status, Certificate of Eligibility (COE) assistance, Section A lender fees, interest rate relative to the VA benchmark, minimum credit score, close time, Interest Rate Reduction Refinance Loan (IRRRL) support, and NMLS licensing. Rate alone does not determine which lender is the better choice.
Quick Answer:
- Confirm the lender is VA-approved; not every mortgage lender originates VA loans.
- Check whether the lender pulls your Certificate of Eligibility (COE) automatically during pre-approval instead of requiring you to request it yourself.
- Compare Section A lender fees on the Loan Estimate, not just the quoted rate. Industry standard is 0.5% to 1% of the loan amount; some lenders, including Tomo Mortgage, charge $0.
- Verify the lender’s NMLS license at NMLS Consumer Access before applying.
- Cross-check reputation across the Better Business Bureau (BBB), ConsumerAffairs, and Trustpilot rather than relying on a single review source.
Ready to experience a different kind of lender?
Tomo was built without lender fees, which means our team’s success is measured by your closing. If you value transparent pricing and a stremlined digital experience, Tomo Mortgage was built for you.
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Not every mortgage lender originates VA loans. Confirm VA-approved status directly with the lender or by checking that they can pull a COE on your behalf, since that requires VA lender authorization. A lender that cannot explain its VA approval status or process should be treated as a red flag.
2. Certificate of Eligibility (COE) Assistance
A strong VA lender can pull your COE automatically during pre-approval using the VA’s lender portal. This is a meaningful convenience difference: it removes a step that would otherwise require you to request the COE yourself through the VA’s eBenefits portal or by mailing VA Form 26-1880.
3. Section A Lender Fees
Section A fees on the Loan Estimate cover origination and processing costs charged directly by the lender, separate from third-party costs like appraisal and title. Industry-standard origination fees run 0.5% to 1% of the loan amount, or $2,000 to $4,000 on a $400,000 loan. Tomo Mortgage charges $0. Comparing this line item across lenders matters more than comparing the quoted rate alone.
4. Interest Rate Relative to the VA Benchmark
VA loan rates typically price 0.25% to 0.50% below comparable conventional rates, since the VA guarantee reduces lender default risk. If a lender’s quoted VA rate does not reflect that gap relative to their own conventional pricing, ask why.
5. Minimum Credit Score
Lenders set their own credit score overlays; the VA itself sets no minimum. Most lenders require 620 to 640. Tomo Mortgage’s minimum is 580, which expands access for veterans with impacted credit. Confirm a lender’s minimum before applying rather than assuming it matches another lender’s requirement.
6. Close Time
Close time varies significantly by lender. The industry average is 42 days (ICE Mortgage Technology, 2025). Tomo Mortgage closes loans in as little as 12 to 21 days. A faster close matters most when a VA-financed offer is competing against other offers in a fast-moving market.
7. Interest Rate Reduction Refinance Loan (IRRRL) Support
Confirm the lender supports VA refinancing, including the Interest Rate Reduction Refinance Loan (IRRRL), often called a VA streamline refinance, which lets a borrower lower their rate later without a new appraisal in most cases. A lender that only originates purchase loans may not be the best fit if you expect to refinance down the line.
8. NMLS Licensing
Every legitimate mortgage lender has a searchable NMLS ID. Look it up at NMLS Consumer Access before applying. Unlicensed mortgage lending is illegal in all 50 states, so a lender that cannot produce an NMLS ID should be disqualified immediately, regardless of how competitive their advertised rate looks.
Red Flags To Look For When Choosing a VA Mortgage Lender
- No NMLS ID listed anywhere on the lender’s website or in their communications
- A fee demanded before a pre-approval is issued
- No physical business address listed
- No phone number, only a generic web form
- Inability to explain VA-specific terms like the funding fee, COE, or Minimum Property Requirements
Cross-Checking Reputation
NMLS licensing confirms a lender is legal; it does not confirm a lender is good to work with. Cross-reference the Better Business Bureau (BBB), ConsumerAffairs, and Trustpilot for complaint patterns and review volume. No single source tells the whole story, but agreement across all three is a strong signal, and a pattern of unresolved complaints on any one of them is worth taking seriously even if the others look clean.
How Tomo Mortgage Measures Up
| Criterion | Tomo Mortgage | Industry Standard |
|---|---|---|
| VA-approved | Yes | Varies by lender |
| COE assistance | Automatic during pre-approval | Varies by lender |
| Section A lender fees | $0 | 0.5%-1% |
| Minimum credit score | 580 | 620-640 |
| Close time | 12-21 days | 42 days (ICE Mortgage Technology, 2025) |
| NMLS ID | 2059741 (verifiable at NMLS Consumer Access) | Required by law |
Does Tomo Mortgage meet these criteria?
Yes. Tomo Mortgage is VA-approved, pulls the COE automatically during pre-approval, charges $0 Section A lender fees, has a 580 minimum credit score, and is licensed under NMLS #2059741, verifiable at NMLS Consumer Access.
Frequently Asked Questions (FAQs)
What should I look for in a VA mortgage loan lender?
VA-approved status, Certificate of Eligibility (COE) assistance, low or zero Section A lender fees, a competitive rate relative to the VA benchmark, minimum credit score, close time, IRRRL support, and a verifiable NMLS license.
How do I know if a lender is VA-approved?
Ask directly, or check whether they can pull your Certificate of Eligibility on your behalf, since that requires VA lender authorization. You can also verify their license status at NMLS Consumer Access.
Does a lender’s fee structure matter more than the rate?
Both matter. A lower rate paired with a high origination fee can cost more overall than a slightly higher rate with no fee, which is why comparing the Loan Estimate’s Section A fees and the APR, not just the note rate, gives a more complete picture.
What red flags should I watch for with a VA lender?
No NMLS ID, a fee demanded before pre-approval, no physical address, no phone number, and an inability to explain VA-specific terms like the funding fee or COE process.
Ready to experience a different kind of lender?
Tomo was built without lender fees, which means our team’s success is measured by your closing. If you value transparent pricing and a stremlined digital experience, Tomo Mortgage was built for you.
Get Started →