• There are no suggestions because the search field is empty.
Toll Free: 800-826-5801

How to Get Ready to Make a Home Purchase With a VA Loan

Posted by Ella Baldwin on Dec 6, 2022 3:58:22 PM
Ella Baldwin

AdobeStock_437644975

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. In order to be eligible for a VA loan, you must meet the service requirements set by the Department of Veteran Affairs. In addition, you need a Certificate of Eligibility (COE) and must meet the lender’s credit and income 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.  This confirms that you are eligible for a VA loan. 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 employment, income, and assets.  Typically, a lender requires proof of consistent employment for the past two years. You will need to submit your most recent paycheck and W2 form for the past two years. 

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 may be paid in full at the closing or financed into the total loan amount.  Funding fees from VA loans may 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 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, title fees, and lender origination fees.  It may be possible for you to negotiate with the seller to pay certain closing costs.  Seller concessions are allowed up to 4% of the lesser of the sales price or appraised value (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 loan amount that you may qualify for. For a pre-approval they will ask for proof of income and assets. Once you are pre-approved, you have the ability to shop within your budget and prove that you have the necessary financing arranged which may strengthen your offer! 

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 could request that you submit updated paperwork, order the appraisal, and more.

Closing Your VA Loan

Once your application has been approved by the 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.

CONTACT STANDARD MORTGAGE

Topics: Mortgages