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    How to Get Ready for a VA Loan

    Posted by Kristie Berggren on Aug 16, 2019 2:34:22 PM
    Kristie Berggren

    Buying a home can be a stressful and intimidating process.  But you can alleviate some of that stress through education and preparation.  We have created a step-by-step guide to financing your home with a VA loan to help wipe away some of the stress.


    What Do I Need for VA Loan?

    Before you can leverage all of the benefits of a VA loan, you must first understand the qualification requirements.


    Proof of Military Service for a VA Loan

    The first step in qualifying for a VA loan is to request a Certificate of Eligibility.  If you’ve already chosen your lender, requesting the certificate through them will typically be the quickest method.  You may also apply online through Veterans Affairs website, or by mail.


    Proof of Income for a VA Loan

    Like any mortgage, your VA lender will verify income, employment, and any other financial assets.  Typically a lender requires evidence of two year as of consistent employment to process your loan.  VA lenders also require proof of creditworthiness.  However, minimum credit score requirements are typically less for VA loans compared to conventional loans.


    Proof of Assets for a VA Loan

    Even though VA loans do not require a down payment, they do require a one-time funding fee.  This VA funding fee is financed into the total loan amount.  Funding fees from VA loans can vary depending on your specific military service, as well as whether or not you choose to make a down payment (even though this is not required).

    You should also be prepared to pay for the closing costs associated with your purchase.  While your VA loan comes with a number of financial benefits, closing costs remain the responsibility of the buyer.  These costs are made up of taxes and insurance, tile fees, and lender origination fees.  It may be possible for you to negotiate closing costs it’s the seller.  Seller concessions are allowed up to 4.% of the loan amount (not to exceed actual closing costs).


    Steps in Purchasing a Home with a VA Loan

     Time to get started with your lender and application!


    Choose Your VA Lender

    Although the Department of Veteran Affairs will be the investor of your loan, you will finance your home through a private lender like a mortgage company or bank.  Selecting a lender with VA experience will make your home buying experience a pleasant one. 


    VA Loan Pre-Approval Process

    Your loan officer will collect the required documents and information to determine the amount that the lender will approve you for.  This gives you the ability to shop within your budget, and allow you to prove that you have the necessary financing arranged.


    Choose the Home

    Once your lender has pre-approved you for your loan, you are free to begin shopping for your home! 


    VA Loan Process

    Once you’ve chosen your home, the loan process will begin.  Your lender will request that you submit the required paperwork, order the appraisal, and more.


    Closing Your VA Loan

    Once your application has been approved by underwriter, your file is sent to the closing team.  Typically, you and your loan officer will work with a title company to coordinate your closing.  The closing is where you will sign all the final paperwork involved with the loan, and receive the funds to purchase your home.  At this time you will also be required to make a down payment (if you have chosen to do so) and pay any closing costs.  Following this, you’re free to move into your new home.

    If you are ready to take advantage of all of the benefits offered by a VA loan, the experts at Standard Mortgage  (NMLS#: 44912) are here to help you.



    Topics: VA Loans