How Can I Apply For A VA Home Loan?

The US Department of Veteran Affairs, also known as the VA, will guarantee mortgage loans that are designated as “VA home loans” (VAHL). The original Servicemen’s Readjustment Act, also known as the GI Bill of Rights, gave birth to the VAHL program in 1944. Millions of veterans and their dependents were able to fulfill their dream of owning a home thanks to the GI Bill, which offered them a home loan that was fully guaranteed by the federal government and required no down payment.

Banks, credit unions, and mortgage firms are examples of private lenders who make VAHL. Contrary to popular belief, obtaining a VA loan involves little red tape. In reality, applying for a VAHL isn’t all that different from applying for any other type of mortgage. The actions you must take to obtain a VAHL if you are a veteran and are interested in purchasing a home are listed below.

Apply for a Certificate of Eligibility

Fill out VA Form 26-1880 (Request for a Certificate of Eligibility for VAHL Benefits) and send it to the VA Eligibility Center along with documentation of your military service to obtain your Certificate of Eligibility (COE). You might even ask your lender to help you obtain the COE if you’ve already started the loan application process. In 10 days, check the status of your COE application.

Find a Lender

Find lenders who take part in the VAHL program. Look around for a reputable lender because interest rates, closing costs, and discount points vary greatly from one lender to the next. Determine the size of the loan you’ll receive by getting pre-approved. Your eligibility for a home loan will be determined by the lender after reviewing your credit history and income data. Because they can process VA loans more quickly than other lenders, LAPP lenders should be considered.

Find a Home You Want to Buy

Look around and choose the house you want to buy. A state-licensed real estate agent could help you find a home that meets your needs by giving you tours of various residences. Be sure to include a “VA Option Clause,” also referred to as a financing contingency, in your purchase and sales agreement. This clause stipulates that the loan application must be approved in order for the contract to be valid.

Order an Appraisal

Usually, your lender will ask the VA to conduct an appraisal. A state-licensed real estate appraiser will visit the home to ascertain the property’s market value after receiving a VA form from your lender. Do not forget that the VA does not guarantee the condition of the home, and the appraisal is not a home inspection or guarantee of value. Additionally, lenders are unable to specify the appraisers to be used, and the appraisers are not VA employees. To determine whether or not to approve the loan, the lender will examine the appraisal as well as the borrower’s credit, income, and assets.

Close the Sale and Move into Your New Home

You must get in touch with a state-licensed insurance agent if the loan is approved. Usually, a title insurance company examines and insures the home’s title and may also prepare closing papers and enter them into public records. When everything is handled, you can move into your new house!