VA Home Loans

Four-Step Process

After you’ve decided that a VA loan is right for you and the VA confirms your eligibility, getting that loan and getting into your home is a four-step process.

1. Find a VA-Approved Lender

   Thousands of lenders offer VA loans. However, remember to use a lender that specializes in them; the paperwork and regulations differ from non-VA loans. A VA loan specialist can make the process a breeze. Joe can recommend lenders that specialize in VA loans.

2. Prequalify

   After you select a lender, you’ll want your lender to give you an esti­mate of how much you can borrow. Every lender will ask different ques­tions, but having documents and information handy from the following five categories will save you time:

   1. Eligibility Info		2. Employment Info
   Completed Request for a Certificate of Eligibility (VA Form 26-1880). Completed Certificate of Release or Discharge from Active Duty (DD Form 214).		W2s and tax forms for the past two years. Three years of tax forms if you are self-employed. Pay stubs covering the past month.

   3. Credit Info

   Know your credit score. Often the three major credit-reporting bureaus (Experian, Equifax and TransUnion) will give you your credit report for free. If you rent, have contact information for your landlord or 12 months of cancelled rent checks. If applicable: If you co-signed on a car, mortgage, etc., you need 12 months of cancelled checks that prove you are not making the payments (fronts and backs of the checks). Bankruptcy and discharge papers.

   4. Savings Info		5. Personal Info
   Last three months of bank statements. Statements from inheritances, mutual funds, money markets, stocks, bonds, 401k’s, retirement accounts, etc.		Copy of driver’s license. Copy of Social Security card. If applicable: Copies of divorce, palimony or alimony papers. Copy of green card or work permit.

3. Find Your Home

   Go out and find that home you want! Since you already have completed the prequalify step, you know how much you can spend on that home. After you find it, you need to:

   1. Create a Purchase Contract
   You and the home’s seller draw up a purchase contract, a document that explains the terms of the sale. Besides the home’s price, the purchase contract may cover inspections, restrictions and easements, liens on the property, disclosures, prior leases, preparing of documents for closing, maintenance of the property up to closing, and other items.

   2. Have the Home Appraised
   Next, a VA-licensed appraiser estimates the value of the home and issues a Certificate of Reasonable Value (CRV). The loan amount cannot exceed the CRV.

4. Submit, Sign, Move In!

   You’ve done the hard parts. Submit the application and if all parties agree on the terms, the loan is almost certainly a done deal. Lots of other details can crop up between now and when you sign on the dotted line, but usually if you’ve made it this far the lender will approve the loan. And then—moving party!