If you are like most veterans and active-duty military personnel, the prospect of securing your first home through a VA home loan might seem like a formidable challenge. Not only must you navigate the intricacies of obtaining documentation directly from the government, but you also face the task of selecting the right lender and real estate agent. The involvement of various parties, each with distinct and deferent qualifications and time lines, can complicate the VA loan process. We recognize that you may be encountering difficulties initiating the process or find yourself at a standstill in your mission to towards homeownership.

To address these concerns, we are committed to guiding you through the VA loan process step by step. Our mission is to provide you with a clear understanding and a plan of action to secure a VA loan. We believe that you deserve to reside with your family in the property you’ve always envisioned but may not have know how to acquire.

Phase 1: Preparation

Before you open the door of your new home for the first time, you need to complete a few preliminary tasks. You can choose to do steps 1 and 2 on your own, all the resources can be be found here on our website, or you can work with a VA approved lender to advise you on the required documents and steps. Having these items squared away will accelerate you and your family into securing the home you want.

1. Determining Your Eligibility by Obtaining a VA Certificate of Eligibility (COE)

Regardless of whether you are an active-duty military member, veteran, or surviving spouse, specific qualifications set by Veterans Affairs must be met. These criteria are outlined in your personalized COE. The Department of Veteran Affairs uses the information on this form to assess your eligibility for a VA loan. Additionally, the COE communicates to your prospective VA approved lender the amount for which you qualify for.

In the past, the process required physically mailing your COE documentation to the VA. However, thanks to the VA's newly established online portal for veterans, you can now submit it conveniently without the need to walk to the mailbox. Furthermore, if your lender is affiliated with the Web LGY System, they can, with your permission, acquire your COE on your behalf.

3. Partner with a VA Approved Lender

While numerous lenders may promote Loans for Veterans, it's crucial to note that only those approved by the U.S. Department of Veterans Affairs have the authority to offer VA loans. These home loan specialists, specifically trained in the intricacies of VA loans, are dedicated to assisting you and fellow servicemen and women in realizing your dream of homeownership.

Furthermore, we suggest seeking out a VA-approved lender with personal military experience or a family member who has served. Their unique perspective allows them to provide advice and support in a manner distinct from other lenders.

Not all Lenders / Banks are the same. Most will have what are known as overlays, additional guidelines that they have set, and you may actually be eligible when they say you are not. A good example of this is credit score, most will require a 620 or higher. We recommend using a mortgage broker instead of a direct lender. Brokers have access to multiple lenders which will give you the opportunity to save money on closing costs, obtaining a lower rate and possibly qualifying due to less than perfect credit.

You may wish to speak to multiple lenders to see what one fits best for you. Click here for some good questions to ask when you are interviewing a prospective VA Approved Lender.

1. Shopping for your Home.

   This step is everyone’s favorite part of the the VA loan process, likely the most thrilling for your family, involves discovering your ideal home and finalizing the purchase agreement. Whether your VA-approved lender suggested them or not, your real estate agent collaborates seamlessly with your lender, ensuring that the home of your choice fits within your prequalification. While the lender manages the financial aspects, the agent showcases various properties in your local area, aiding you in finding the best fit for your family.

It's essential to note that participating in the VA loan program covers certain fees and costs specified in the sales contract. As you take up the pen to sign the document, pay attention to terms like "VA Escape Clause" and "VA Option Clause." These provisions become crucial when acquiring your home. They allow you to cancel the purchase contract if the property falls short of meeting appraisal requirements for the agreed-upon price. This safeguard can save you money in case the deal doesn't materialize as planned, ensuring a prudent approach to securing your dream home.

3. The Home Inspection and the Appraisal
Securing a home that will endure for your family and prove to be a sound investment is paramount. It's crucial to assess the actual value, going beyond market evaluations, and invest in home inspection services. This prudent practice applies to all homebuyers, regardless of whether they opt for a conventional loan or another loan type. You want to make sure that the seller didn’t put lipstick on the pig.

The inspector diligently examines every aspect of the property, uncovering potential defects that may have eluded both you and the homeowner. Meanwhile, it falls under the responsibility of your VA-approved lender to coordinate the VA appraisal for the property. This meticulous evaluation ensures a comprehensive understanding of the home's worth and condition, reinforcing your confidence in the investment.

2. Assess Your Present Financial Situation

Take the opportunity to either confer with your significant other or engage with your VA-approved lender to evaluate your current financial status. They can assist you in determining the stability of your financial position concerning the prospect of purchasing a home. Elements such as your credit score, monthly income, and expenses will play a pivotal role in deciding whether to proceed with the VA loan process.

Additionally, they can guide you through the various future homebuying costs that may not be immediately apparent, providing you with a comprehensive understanding of your financial commitments in the short term, as well as five, 20, or more years down the line.

It is also recommended that you get a copy of your credit report from Experian, Trans Union and Equifax. If you are working with a Lender already, request them to do a SOFT credit pull. This will not affect your credit score and will give them enough information to get a really good idea if you can qualify for a loan. (Automated underwriting cannot be ran with a soft pull)

4. Getting Prequalified and/or Pre-Approved

In this step, you will take an application with your Loan Officer / Originator. You will want to send your income documentation (pay stubs/LES, last 2 years W2’s/1099s and 1040 tax returns) and 2 months of your assets (Bank statements, retirement accounts, etc.) Your Loan Officer will get your permission to pull your credit and run AUS (automated underwriting system). You may also qualify for what is know as manual underwriting if you do not pass the AUS, however most lenders will not allow this (we do).

Once this has been completed, your Loan Officer will be able to issue your Pre-Qualification Letter. You will need this letter before most realtors will take you on as a client.

Your lender MAY have the option to also submit your application to an underwriter for a pre-approval letter! This is a much stronger letter when putting in an offer on a home.

5. Find the Right Real Estate Agent

In your mission for your dream home, it's essential to connect with a real estate expert who really understands your specific preferences and budgetary considerations. Seek recommendations from family members, friends, colleagues, and even your VA-approved lender to identify suitable agents.

*Warning* Before entering into a partnership or signing any agreements, inquire about the real estate agent's consultation fee, terms and conditions, as well as any miscellaneous charges. This upfront understanding will ensure transparency and help you make an informed decision.

Phase 2: House Hunting

After forming partnerships with the essential parties, including Veterans Affairs, a VA-approved lender, and a real estate agent, it's time to kickstart the process of acquiring your dream home. The subsequent steps in the VA loan process encompass identifying a home that resonates with your family, ensuring that the home qualifies for your VA loan, and navigating the remaining stages with the guidance of a real estate agent.

2. Submitting your VA Home Loan to the Underwriter

Now that you have a purchase contract. Your application needs to be updated with all the particulars of the home you have chosen. Your VA approved lender will then send you the initial disclosures to be signed. You will also need to update your income and asset documentation to ensure that they have the most current documents. You will also need to start shopping for a homeowners insurance policy that properly covers the home and your family.

Once the underwriter reviews the initial application, they will issue what is know as a conditional approval. There will be more items that you will need to provide in order for the underwriter to give you a final approval. This is typically letters of explanation and documenting your earnest money going from your account to the title company.

Phase 3: Home Ownership

As you approach the conclusion of the VA loan process, reaching the point where you've been guided by a VA-approved lender and a real estate agent, both entities will continue to work closely with you. Together, they will assist you in finalizing the necessary documentation, ensuring a smooth transition to the purchase of your family's dream home and facilitating your move-in process.

1. Closing on your VA Loan
   This marks the conclusive phase of the VA loan process and holds paramount significance. Both you and your significant other will meticulously review all pre-closing paperwork (The Closing Disclosure), thoughtfully sent by your lender at least three business days in advance. These documents solidify your agreement with the loan amount and terms and conditions of your VA mortgage, concluding with the settlement of closing costs.

   Typically, the closure of your VA loan takes place at a lawyer's office, title company, escrow office, or by mobile notary. During this session, you'll receive guidance on the financial intricacies of home buying, covering aspects such as your monthly mortgage payment, interest rates, and other processing fees. Once all closing documents are signed and title has recorded your documents with the county, you are officially ready to embark on the exciting journey of moving into your new home.

Beginning the VA loan process and the pursuit of dream-homeownership signifies the initiation of a thrilling financial journey, aiming to secure a property deserving of your family. Our team is approved with over 80 VA-approved lenders, and has guided numerous clients with military service along this path, establishing multiple trailheads for you to join us on this venture.

With veterans among our team members with decades of experience, we are prepared to assist you in securing a VA loan, navigating the home purchase process, and ultimately celebrating the closure of your loan. You can initiate the process by applying here or reaching out to our office via phone, and we would be honored to commence the VA loan journey alongside you.