There are several steps to go through to obtain a VA home loan. While these are often much easier to obtain than conventional loans, it will be important for an individual to ensure that all steps in the process are completed and all documents supplied to obtain loan approval.
It is important that the VA itself doesn’t complete the application or work with you on the loan. Instead, you will need to find a lender that is VA approved and participates in the program. Lenders will have the ability to set their own interest rates and closing costs, so it is essential to shop around to get the best deal on the loan.
Certificate of Eligibility
In order to qualify for a VA loan, the individual applying for the loan will need to provide the lender with a certificate of eligibility from the VA. In order to receive a certificate of eligibility, the individual needs to follow the steps detailed by the US Department of Veterans Affairs.
Find a Home
Once the pre-qualification process for the VA home loan is complete, it will be time to begin the home-finding process with a real estate agent. It will be important that the contract for the purchase of the home contains what is known as the VA Option Clause.
Some home purchase agreements also stipulate that should the VA home loan be rejected; the seller will release the buyer from the contract without any penalty.
With the purchase agreement, the lender will process the loan application. This will include a VA appraisal of the property, which is not the same as a home inspection. Once this is completed to appraise the property value as compared to the purchase price and all financial documentation is approved, the lender will determine if the loan will be granted.
To discuss any questions, you may have about a VA home loan, contact our VA lenders at Guaranteed Rate. To find out more, see us online at website