5 Steps to a VA Loan
At Veterans First Mortgage, we believe your journey to a VA loan is as individual as your service to our country. While no two Veterans take exactly the same path to homeownership, there are some common steps each may take along the way.
We’ve Simplified the VA Purchase Process
No matter where you are in the purchase process, we hope to help you achieve your goal of homeownership. Your Veterans First loan team can take you through the process step by step.
To help you understand what to expect when you choose Veterans First as your lender, we’ve narrowed down the VA loan purchase process to just five steps:
- Research
- Prequalification
- House Hunting
- Processing and Approval
- Closing
1) Research
This initial step is all about exploring your eligibility and narrowing down the loan programs that you think apply to you. This is also a good time to obtain a Certificate of Eligibility (COE) for a VA loan if applicable. You’ll also want to get familiar with what it takes to qualify for a loan, and mind your finances. Additionally, check out the housing market in your target neighborhood so you have a good idea of what a home might cost.
2) Prequalification
At this point, sellers want to know whether you have the financial support behind your offer. When you prequalify with your lender, you get a good idea of where you stand for loan approval. If you have a credit issue, your lender should point it out to you, and you can take some time to work on your credit, if needed, before you apply for your loan. Or, if everything looks good with your finances, you’ll get a prequalification letter that states your ballpark price range.
3) House Hunting
Now the fun begins as you zero in on preferred neighborhoods, decide whether to use a real estate agent, discuss costs with your lender, and understand which of those can be negotiated as seller-paid fees. If you’ve chosen to use the VA loan program, and you’re using a real estate agent, we suggest someone who’s versed in the VA loan process. For instance, if your agent knows about the VA option clause, you can escape from a purchase contract without penalty in certain cases. Once you find the home you want, you can make an offer and seal the deal, but be sure to include that VA “escape” clause just in case.
4) Processing and Approval
Once you have that signed purchase contract in hand, get it to your lender ASAP so they can order your appraisal. While you’re waiting for the appraisal to be completed, you can submit all your financial documents to your lender. You’ll probably want to lock in your rate at this time, too. Additionally, you will want to tie up loose ends like getting a professional inspection and picking a homeowner’s insurance plan that works for you.
5) Closing
You’re almost home! Before you close on your loan, you’ll want to review your documents carefully with your loan officer. Sign all your documents once you are certain the terms are as you expected. Make sure you get all utilities in your name and forward your mail. Then, all that’s left to do is move in and make your house your home.
We Also Make Your VA Refinance Smoother
On the other hand, if you already own a home and you’re seeking refinancing, here are the five steps we recommend. A refinance loan doesn’t have to be difficult. Keep track of your refinance progress by following this list.
Five Steps to a VA Refinance Loan:
- Choose Your lender
- Obtain Your COE
- Get an Appraisal
- Complete Your Application
- Close Your Loan
1) Choose Your Lender
All lenders are not the same. To ensure a smooth process, it is important that your lender has experience serving Veterans. We recommend taking it one step further by using one that specializes in military clientele. We also suggest that the lender you choose has a good balance of competitive rates, fair fees, and great customer service.
2) Obtain Your COE
For VA cash-out refinance loans, you’ll need to get a new COE. You can do this online at the VA benefits portal or ask your lender to assist you. Either way, this is an important document if you plan to use your VA home loan benefits to refinance.
3) Get an Appraisal
A fresh assessment of your home’s value and condition by a certified VA-approved appraiser is essential for cash-out refinances.
4) Complete Your Application
This step will most likely involve documents to show your income and assets. The lender will weigh these against your debt to determine your ability to pay your loan. If you meet all the VA and lender qualifications, you’ll achieve final underwriting approval for your loan.
5) Close Your Loan
In this final step, you’ll review your numbers with your loan officer. At your closing, you’ll sign all of your documents. Once that’s done you can sit back and enjoy the benefits of your refinance.
