14 Apr Step-By-Step Guide To The VA Loan Process
Applying for a mortgage is an exhausting activity. However, when it comes to VA loans, we have simplified the process in easy steps for better understanding.
Choose a VA-approved Lender
Not every lender can assist you with a VA loan. Only lenders approved by the U.S. Department of Veterans Affairs can provide VA mortgages. It is also essential to find a VA specialty lender who caters to VA mortgages for an easier and quicker loan process.
Obtain a COE
COE, also known as Certificate of Eligibility (COE), confirms that you meet the initial eligibility standards for VA loan benefits. It will assists lenders in determining the amount of entitlement you can receive. To obtain your COE, you’ll need to provide the necessary details about your military service to the lender. Most of the time, you can download a COE online either through a lender’s portal or through the eBenefits portal on the va.gov website. Those servicemembers or surviving spouses who are unable to obtain COEs online will receive them by mail.
Pre-Qualify for Your Loan Amount (optional)
Pre-qualifying is important, but not essential. If you complete this step, you will save some time and will already know the maximum amount you can be allowed. To pre-qualify for your loan amount, you will need to share income, credit history, employment, marital status, and other details with your VA loan professional.
Locate a Home and Sign a Purchase Agreement
The fourth step is the most exciting step of the process. You can browse houses in your budget and finalize one to your liking. Once you’ve finalized an option, you can sign the purchase agreement, and move forward in the VA loan process.
Lender Processes Application and Orders VA Appraisal
After you have provided a signed purchase contract to your lender, they will request the VA appraisal. The VA appraiser will verify the price you’ve agreed to pay for the home corresponds with the current value. The appraiser will also inspect the home to ensure it meets the VA minimum property requirements (VA MPRs). The Department of Veterans Affairs gives the appraisers ten days from order to completion barring extenuating circumstances. If the home passes appraisal for value and VA minimum property requirements, and it’s verified by the lender that you qualify for your loan, the underwriter will give his or her stamp of approval.
Close on Your Loan and Move In
Once the underwriter approves, all that is left to do is close and move in. During closing, the property is legally transferred from the former owner to you. During closing, all you do is sign documents confirming your understanding and acceptance to the terms of the loan. Later, you must provide proof of homeowners’ insurance and pay the closing costs, if any. After the signing of the closing documents, you’ll get the keys to your new home.