Getting VA Loans: A Quick Guide
Do you wish to get a VA loan? If yes, you must be wondering; What do I do and where do I start? Certain requirements need to be met when getting VA loans.
It is quite understandable if you are a first-time home buyer. Even the mortgage process at first seems confusing. Things can be more elusive if we speak of VA loans that come with their unique requirements.
However, you can complete your VA loan process in just five simple steps. To help our military buyers, here’s a quick guide!
Prequalification refers to the evaluation of borrower’s eligibility by the lender. This involves asking different questions about current financial status to establish an initial loan eligibility assessment. The process does not take long and can be completed on a phone call, in just a few minutes.
Preapproval is the in-depth analysis of the borrower’s profile. For this, borrowers must provide all the requested documentation like tax returns, pay stubs, bank statements and others. Some lender may also get you a Certificate of Eligibility but this is not necessarily required to begin with the loan process.
After the successful completion of this stage, a buyer obtains a preapproval letter that is usually shown during the initial offer to purchase real estate. It is a necessity to show this letter when submitting an offer to be taken seriously.
Once the borrower has selected the property, the lender will schedule an appraisal. Don’t confuse this process with borrower’s inspection. The VA appraisal is to ensure that the property meets all the Minimum Property Requirements of VA. This means all necessary repairs must be done to bring the property up to certain VA standards.
The appraiser places a value on the house that is extremely important in getting the loan. The appraisal value cannot fall below the VA loan so a low appraisal value may fail to meet your financial requirements.
Once VA appraisal is completed, all of the loan documentation is then sent to an underwriter (mortgage). The underwriter performs a thorough review to ensure both the property and applicant meet lender and VA guidelines. Every shortcoming needs to be rectified before the issuance of the final loan approval.
5. Close on Loan and Move In
Since you’ve received the loan, all that is left to do is to move in your house. This is the stage where property transfers from the previous owner to you. In this step, you must sign all the loan documents indicating that you understood and agreed to the loan terms.
You may be required to pay closing cost or provide homeowners insurance proof. Before finalizing the final property transfer, the buyer may conduct a final walk-through to make sure that the house is still in the same condition and any repairs have been made.
Congratulations! You’ve got the VA loan and it’s time to start living in your new dream house.
However, always pay attention to the experience of the lender in terms of VA financing. VA loan has specific requirements and is a special financing tool. Take these steps in a planned and careful manner and ensure that your lender has VA loan experience.