Demystifying the VA loan process

VA Loan Process

Applying for any type of loan to purchase or modify a home takes time and energy, the process with a VA loan options is no different.  As with any government loan there are steps to follow and requirements that need to be met.  In order to qualify you need to meet a certain set of guidelines, the application process can be done online. The following t rundown of steps to getting a VA loan is easy to understand.

Find a Reputed VA approved Lender

One of the first steps you will want to take into consideration when selecting a VA approval houses is choosing a VA approved lender.  You may think that is doesn’t matter which lender you choose, any one is fine, but they need to be approved by the U.S Department of Veterans Affairs because they are the only lenders who can process this loan.

Some lenders specialize in conventional loans while other focus mainly on the VA loans and will be more knowledgeable of the process.  It is always better to go with a lender who is familiar and knowledgeable of these types of loans instead of a lender who only does processing of a few because this can mean a faster turnaround for you and the process may be easier because of their expertise.

Get Certificate of Eligibility

Once you have found a VA approved lender it is time obtain a Certificate of Eligibility(COE). This shows that you meet the necessary requirements to apply for and receive a VA loan.  It will also help them determine how much you are entitled to receive which is what the Department of Veterans Affairs will give on the VA loan you receive.

This is done by providing the lender with thorough information with regards to your military background.  This can be done online through the lender website or at www.va.benefits.gov .  If for some reason you cannot do it online, you can still obtain the application via mail.

Pre-Qualify for Amount of Loan you are applying for

This is optional, but it is still a good idea to get pre-qualified.  This saves you a lot of hassle and potentially extra time should a problem arise.  This is done by discussing your all your financial information with the lender.  Things to provide them with are income and employment, your credit history, marital status, dependents and any other pertinent financial resource information.  The more detailed the better.  By going through this step, it will let you know in advance of any steps you need to take to improve your financial situation before you can be approved relating to credit card issues and the ratio of debt to income areas.

Receiving a pre-qualification letter doesn’t mean you are approved for a loan, but it will give you an idea as to what you can afford when beginning your house hunting process.  The guarantee of a loan comes later from the underwriter once all documents have been received and reviewed.

Purchase Agreement:

You may then begin house hunting and sign a purchase agreement which is the most exciting part of this process.  The universal layout of the home is important as well as working with an agent who is familiar with VA loans and the process regarding fees that can be taken care of by the seller.

Once this purchase agreement is finalized the lender will arrange for a VA appraisal.  You will need this to be done by appraiser who is certified in VA appraisals, this process includes inspections to meet VA minimum property requirements, the Department of Veterans Affairs gives a total of 10 days to complete this process from start to finish.  During this time your job will be to submit documentation to the lender showing that you are qualified for the loan.

Close on your loan

In the final step, once the underwriter approves all the documents is to legally take possession of the home through the closing process.  Closing is the step that transfers the title of ownership to you from the seller and requires lengthy amounts of documents to be signed.

This is the traditional process for a VA loan, each lender may follow the process differently.The VA Loans are for military families and Veterans only. The intention behind VA loan program is to provide affordable home financing options to the veterans and to help them purchase properties with no down payment.

Applying for any type of loan to purchase or modify a home takes time and energy, the process with a VA loan options is no different.  As with any government loan there are steps to follow and requirements that need to be met.  In order to qualify you need to meet a certain set of guidelines, the application process can be done online. The following t rundown of steps to getting a VA loan is easy to understand.

Find a Reputed VA approved Lender

One of the first steps you will want to take into consideration when selecting a VA approval houses is choosing a VA approved lender.  You may think that is doesn’t matter which lender you choose, any one is fine, but they need to be approved by the U.S Department of Veterans Affairs because they are the only lenders who can process this loan.

Some lenders specialize in conventional loans while other focus mainly on the VA loans and will be more knowledgeable of the process.  It is always better to go with a lender who is familiar and knowledgeable of these types of loans instead of a lender who only does processing of a few because this can mean a faster turnaround for you and the process may be easier because of their expertise.

Get Certificate of Eligibility

Once you have found a VA approved lender it is time obtain a Certificate of Eligibility(COE). This shows that you meet the necessary requirements to apply for and receive a VA loan.  It will also help them determine how much you are entitled to receive which is what the Department of Veterans Affairs will give on the VA loan you receive.

This is done by providing the lender with thorough information with regards to your military background.  This can be done online through the lender website or at www.va.benefits.gov .  If for some reason you cannot do it online, you can still obtain the application via mail.

Pre-Qualify for Amount of Loan you are applying for

This is optional, but it is still a good idea to get pre-qualified.  This saves you a lot of hassle and potentially extra time should a problem arise.  This is done by discussing your all your financial information with the lender.  Things to provide them with are income and employment, your credit history, marital status, dependents and any other pertinent financial resource information.  The more detailed the better.  By going through this step, it will let you know in advance of any steps you need to take to improve your financial situation before you can be approved relating to credit card issues and the ratio of debt to income areas.

Receiving a pre-qualification letter doesn’t mean you are approved for a loan, but it will give you an idea as to what you can afford when beginning your house hunting process.  The guarantee of a loan comes later from the underwriter once all documents have been received and reviewed.

Purchase Agreement:

You may then begin house hunting and sign a purchase agreement which is the most exciting part of this process.  The universal layout of the home is important as well as working with an agent who is familiar with VA loans and the process regarding fees that can be taken care of by the seller.

Once this purchase agreement is finalized the lender will arrange for a VA appraisal.  You will need this to be done by appraiser who is certified in VA appraisals, this process includes inspections to meet VA minimum property requirements, the Department of Veterans Affairs gives a total of 10 days to complete this process from start to finish.  During this time your job will be to submit documentation to the lender showing that you are qualified for the loan.

Close on your loan

In the final step, once the underwriter approves all the documents is to legally take possession of the home through the closing process.  Closing is the step that transfers the title of ownership to you from the seller and requires lengthy amounts of documents to be signed.

This is the traditional process for a VA loan, each lender may follow the process differently.The VA Loans are for military families and Veterans only. The intention behind VA loan program is to provide affordable home financing options to the veterans and to help them purchase properties with no down payment.

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