VA Home Loan Application Process

It is good to know that the federal government encourages home ownership and is even more considerate to the country’s veterans and servicemen.  However, the process of a VA home loan application secured by the government can be a tedious task for some. And experts would agree it doesn’t have to be.

 

Get this: Veterans and servicemen have the chance to benefit from the VA home loan program. What are you waiting for? Apply for a VA home loan now! Moreover, getting approved for a VA home loan application is not hard to achieve.  Following are the typical steps of a smooth and hassle-free VA home loan application.

 

Opt for the right VA-approved lender for quicker VA home loan application

You should know that not all VA lenders are the same. Why? First, keep in mind that only lenders approved by the VA can originate VA mortgages. Second, other lenders are not specialty VA lenders. These can be lenders that also focus on FHA or conventional mortgages. Now, what does it mean to transact business with a VA specialty lender? Apparently, a specialty VA lender can process your VA home loan application easier and quicker.

 

Acquire a Certificate of Eligibility (COE)

The Certificate of Eligibility tells the VA lender that the veteran is eligible for the home loan benefit. Moreover, the COE informs the borrower’s entitlement or the amount the VA will pay back to a lender in the event the borrower failed to pay his debt.

A veteran or serviceman can acquire the Certificate of Eligibility (COE) through the following means:

  1.       Acquire COE through the online application webLGY through the VA Information Portal.  
  2.       Request COE through the mailed application. To do this, you need to fill out the VA Form 26-1880 correctly and completely.  The completed form and its attachments should be sent to the address indicated in the form.
  3.       Ask your VA lender to get the COE for you. VA approved lenders have automated systems that can acquire the veteran’s COE in a matter of minutes.

US VA Loans

Choose to Prequalify for your VA Loan

Getting pre-qualified is not required but this step will save you from potential hitches during underwriting. Furthermore, this step will help you analyze your debt to income ratio. During the pre-qualifying process, it is important that you provide the VA lender with your overall financial picture, including your debt, income, and assets. You will then receive a prequalification letter that provides you with a rough price range for house hunting. Nevertheless, the prequalification letter does not in any way guarantee the approval of the borrower’s loan application.

Choose your desired home and sign a Purchase Agreement

 

In this step, it is best to work with a real estate professional who specializes in the VA process. According to the VA lender’s handbook, VA allows borrowers to pay the closing costs up to 4% of the property value. This means your agent can help you to negotiate seller-paid fees. After choosing your desired home and signing a purchase agreement, you can proceed to the VA appraisal.

 

VA lender orders VA appraisal

The appraisal process requires a professional appraiser who understands the VA standards. First, the VA appraiser should make sure the property corresponds with the present value. Second, the VA appraiser should see to it that the property meets to what is called the VA minimum property requirements (MPRs). The VA appraisal usually takes 10 days from order to completion as allowed by the Department of Veterans Affairs. If the appraisal is successful and the VA lender confirms the borrower’s eligibility, then the underwriter approves the loan application.

 

Get ready to move in

Closing which is also called “settlement” is the last step in purchasing and financing a home. During this step, the borrower should sign the legal documents that confirm the homebuyer understands and agrees to the terms of the loan. The property is now legally transferred to the homebuyer and you can now take the keys to your new home.

Where are you in Texas? Get in touch with Texas VA approved lenders. Apply for a VA home loan now!