VA Loan Process

Getting a VA loan is not significantly different than getting any other type of mortgage. 

A VA loan involves five fundamental steps for homebuyers: pre-approval, home search, obtaining a contract, underwriting, and closing.

This process usually results in a stronger financial future using the most powerful mortgage product.

Here, we detail the step-by-step process for getting a VA loan and how veterans can get the most out of their VA loan.

Step 1: VA Loan Pre-Approval

Getting pre-approved for a VA loan is an essential first step. A pre-approval is the initial green light from your mortgage lender and gives you a clear picture of your purchasing power.

A pre-approval adds weight to any offer you make on your home. In today's real estate environment, home sellers expect to see offers from pre-approved buyers.

Some sellers may only consider your offer with a copy of your pre-approval letter.

During pre-approval, your lender will examine your credit, finances, employment status, service history, etc. Lenders validate your service history with a Certificate of Eligibility (COE). You don't need a COE to start the process, as lenders can usually access this document on your behalf with just your date of birth and Social Security number.

Additional documents typically include W-2 forms, recent pay stubs, and bank statements. 

This VA loan process step can take minutes to hours, depending on your lender's documentation requirements.

Document requests may vary based on the nature of your income, your history of military service, and more.

Talk to your loan officer if you have questions about the documentation requirements. 

The quicker you send the lender these documents, the faster they can verify the data and complete your loan pre-approval.

Remember that a pre-approval letter is not a guarantee of financing, and this step usually comes with a series of conditions to get you to the final stage of the VA loan process.

See what you're eligible for:

Answer a few questions below to determine what your military service has earned you to speak with an expert today.

Select your branch of service:

• The army

• Marine Corps

• Navy

• air Force

• Coast Guard

• Space Force

• Military Spouse

Step 2: Search for a Home

Finding a Real Estate Agent Who Knows VA Loans These are more specific home loan options, and some properties may be more suitable for VA loans than others. 

In addition, VA loans also offer great benefits when it comes to closing costs, and experienced, friendly agents can help buyers make the most of their advantages.

Veterans United works to connect buyers with knowledgeable VA agents through 

Veterans United Realty, our nationwide network of agents who understand the needs 

of military buyers.

Like other government-backed mortgage options, VA loans are for purchasing a primary

 residence you plan to live in full-time. Veterans can purchase a multi-unit property (complex of up to four) if they plan to live in one of the units.

Homes must generally be in good condition. The VA's appraisal process involves looking at a home in light of some general property condition requirements, called Minimum Property Requirements (MPR). MPRs are high-level reviews and less in-depth than a home inspection.

The VA does not require home inspections, but home inspections are almost always a good investment.

If the adjuster sees problems with the MPR, it may require repairs before closing the loan. 

VA buyers can ask sellers to pay for repairs and cover the cost themselves if necessary.

Buying a home needing repair with a VA loan is possible, but it can present challenges in the VA appraisal process. If you are looking for this property type, talk to a loan specialist in more detail.

Once you've found a home you like, the next step is to make an offer to buy it.

Step 3: Get under contract.

Your loan officer and a trusted real estate agent can help you make a solid offer.

Your agent will look at recent sales of comparable homes in the area to help form your 

starting point for the purchase price. Pricing and negotiation strategies can vary depending on the real estate market, the specific home, and more.

VA loan closing costs can vary based on several factors. Buyers can ask sellers to pay all closing costs related to the loan and discounts of up to 4 percent, which can include escrow fees and more.

Most potential VA buyers will offer a contract with multiple contingencies that cover specific events leading up to loan closing. Typical contingencies include the right to a home inspection, handling repair requests, how many days the buyer has to obtain financing, security deposit requirements, and more.

Every VA contract includes additional protection for the veteran's security deposit from VA assessments. A special supplement ensures that VA buyers get their escrow money back if the property's appraised value is low and the veteran decides to back out of the deal.

It may take VA buyers a few rounds of negotiations to close a purchase agreement. Also, keep in mind that some markets are more complex than others. You may make offers on several houses before you find something that works. Every buyer-seller's situation is different.

Step 4: Evaluation and Membership

The VA loan process begins after you are under contract. Your loan team sends your agreement and documents to loan processors and underwriters, who come out to verify the loan and do homework for the borrower, lender, and VA.

At this stage, the lender will also order a VA appraisal. Home buyers typically cover the cost of the appraisal upfront, although it is possible to request a refund from the seller at closing.

VA assigns an independent, third-party appraiser to assess the value and condition of the property. Lenders have no control over the appraiser, his schedule for completing the appraisal, or his property review.

When evaluating a home's fair market value, an appraiser will look at recent sales of comparable homes. Buyers must appraise the house for at least what they've offered to pay for it. If the appraisal is insufficient, the buyer and seller must either renegotiate the purchase price or terminate the transaction.

If the appraiser notes that the property needs repairs to meet the VA's minimum requirements, buyers can ask the seller to pay for them or, in some cases, cover the costs themselves.

As the underwriting process unfolds, your loan team will have questions and requests for additional information. The sooner you contact your lender with answers and information, the easier this step will be. Talk to your lending team if you have questions or need additional clarification about the underwriting application.

After passing the trial and subscription, you'll get "clearance to close," which means you're ready to move on to closing day. Being "clear to close" is not yet a financing guarantee, but it is almost there.

Step 5: Closing Your VA Loan

This document allows buyers to compare their final closing costs and loan information with the estimates they received earlier. Your loan officer will usually review this document with you. Be sure to ask if you have any questions about their costs, fees, or anything else.

You can also take a final tour of the property. Last Tour allows you to check for any repairs, request the removal of items you didn't want to leave behind, and more. Contact your real estate agent and lender immediately if there are any problems.

Expect to sign a tonne of paperwork on closing day and finally receive the keys to your new home.

Understanding the VA loan process will help you maximize your budget and this compelling benefit. Talk to a Veterans United Loan specialist to get started on your home-buying journey.