The VA Loan Process
The VA Loan Process
The process of obtaining a VA loan is similar to obtaining any other mortgage. Pre Approval, house hunting, entering a contract, underwriting, and closing are homebuyers’ five fundamental VA loan stages.
Using perhaps the most potent mortgage product on the market, this method often yields a more secure financial future.
Here, we go over the specific steps for obtaining a VA loan and how Veterans can make the most of this advantage.
Step 1
VA Loan Preapproval
Obtaining VA loan preapproval is a crucial first step. Preapproval offers you a good idea of your purchasing power and is the first approval from your mortgage provider.
Your lender will examine your credit, finances, job situation, service history, and more during the preapproval process. With the Certificate of Eligibility, lenders can verify your service history (COE). The process can be started without a COE because lenders can frequently access this document on your behalf using only your date of birth and social security number.
Other documents may be requested depending on your income source, military service, and other factors.
Documents you may need to provide during VA Loan preapproval include:
A duplicate of your license or other forms of official identity
A copy of your Reserve/Guard points statements or DD-214
A declaration of service for debtors who are on active duty
W-2s and recent pay stubs from the previous two years
Last few bank statements
Letters of disability awards
Step 2
The House Hunt
Now that you have your preapproval letter, you’re prepared to begin the VA home buying process’ most exciting phase, the house hunt.
It’s crucial to find a real estate agent knowledgeable about VA loans. Some properties may be better candidates for VA loans than others because these are more specialized home loan choices. Additionally, closing expenses are a huge benefit of VA loans, and veteran-friendly agents can assist purchasers in maximizing their benefits.
Through our nationwide network of brokers that are familiar with the needs of military purchasers, AmericasVaLoan.com strives to link buyers with VA-savvy realtors.
VA buyers can use their home loan benefit to purchase:
Currently built single-family dwellings
Condos and new construction
Housing that is manufactured or modular
Multi-unit buildings
* VA loans, like the other government-backed mortgage choices, are only for people who want to buy primary residences to live in full-time. Veterans can purchase up to a four-plex if they intend to dwell in one of the units.
With a VA loan, buying a fixer-upper is feasible, but the VA appraisal process may be hampered. If you’re looking for that kind of home, have a more in-depth conversation with a lending expert.
Making an offer to purchase a property is the next action after finding one you adore.
Step 3
Getting Under Contract
Your loan officer and a reliable real estate agent can assist you in creating a compelling bid.
To assist you in determining a starting point for a purchase price, your agent will look at recent similar house sales in the neighborhood. The real estate market, the particular home, and many other factors can influence pricing and negotiation tactics.
Most potential VA buyers will provide a contract with several conditions that cover particular occurrences before the loan closing. Common contingencies include the right to a home inspection, handling repair requests, how long the buyer has to find financing, the amount of earnest money that must be paid upfront, and more.
VA purchasers may need to negotiate a few rounds before a purchase agreement is finalized. Also, remember that some markets are more challenging than others. Before you locate a deal that works, you can make offers on many houses. Each buyer-seller scenario is unique.
Step 4
Appraisal and Underwriting
Once you’re in a contract, the VA loan application procedure accelerates. To ensure that the loan and the home are legitimate for the borrower, lender, and VA, your loan team sends your contract and supporting papers to loan processors and underwriters.
The lender will also request the VA appraisal at this time. The homebuyer normally pays the appraisal cost upfront, though it is possible to request repayment from the seller before closing.
The VA appoints a neutral appraiser to evaluate the property’s worth and state. Lenders are not in charge of the appraiser, the timetable for the appraisal, or the appraisal’s evaluation of the property.
Buyers can ask the seller to cover repairs if the appraiser deems it necessary to meet the VA’s Minimum Property Requirements. Alternatively, they may even choose to shoulder the costs themselves in some circumstances.
Step 5
Your VA Loan Closing
A Closing Disclosure will be provided to VA buyers just before their scheduled loan closing. Buyers can contrast their actual closing expenses and loan details with the estimates they received earlier in the process using this document. This document is normally reviewed with you by your loan officer. Inquire if you have any issues regarding your charges, fees, or anything else.
Expect to sign several papers on closing day and finally receive the keys to your new house.
Gaining a thorough understanding of the VA loan procedure will enable you to make the most of your financial situation and this highly potent benefit. Consult an AmericasVaLoan.com loan consultant to get your home-buying process started.
How the process differs from other types of home loans
Since there are more documentation requirements as part of the appraisal and inspection process, the VA loan application process may take longer than the standard loan application procedure. However, borrowers will receive more advantageous conditions, resulting in cost savings of thousands of dollars throughout the loan.
Obtaining a Certificate of Eligibility before signing a purchase agreement and ensuring you have other required paperwork on hand during the underwriting process are two actions borrowers may do to speed up the process.
Questions about whether you qualify?
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