There are five main steps in the VA home loan process: research, prequalification, house hunting, processing and approval, and closing and moving in. Learn more about these steps below.
1. Research
Research homes in your desired neighborhoods to get an idea of what kind of home you might like to own. Also, begin reaching out to lenders. This can give you a good feel for what kind of services and loan products are available to you.
2. Prequalification
Sellers (and their real estate agents) typically prefer a “prequal letter” to accompany serious offers. Your lender provides the letter. It’s not a guaranteed loan offer, but it specifies how much the lender is willing to lend you, up to a certain amount, based on some assumptions. Having an idea of how much you can borrow can save you time while house hunting.
3. House Hunting
Shopping for your dream home is exciting, but may require some patience. Make a list of features you want and need in your home. Many of our clients have found it helpful to work with a real estate agent who is familiar with VA loans. Once you find your home and make an offer, you’ll want to get the purchase agreement to your lender right away.
4. Process and Approval
As your loan is processed, an appraisal will be done on the property. You will be asked to provide various financial documents to your lender, including tax returns, pay stubs, and bank statements. Other information, such as a divorce decree, for example, may also need to be submitted. Documents like these are needed to complete your file so you can be eligible for final approval.
5. Closing and Moving In
Once your loan is ready, you’ll attend your closing and sign your loan documents. Nothing beats receiving your new keys and opening the door to a home that’s now yours!
