A 6-Step Guide to Securing a VA Loan
Are you a veteran looking to purchase a home? If so, then what an exciting time for you! With the help of VA loans, veterans can make their dream of homeownership come true.
But how do you go about securing such a loan? That’s where this helpful guide comes in: we’ve outlined all 6 steps needed to get your VA loan approved and on its way.
From finding the right lender and getting pre-approved to submitting documents and closing on your new home—you’ll be armed with the knowledge needed to confidently undertake this financial journey.
Securing a VA Loan
Read on for a comprehensive guide filled with advice from industry experts who have gone through it all before!
Determine Eligibility
If you’re a veteran or an active duty service member, you may have heard of VA loans — a benefit designed specifically for those who have served our country.
VA loans can provide a variety of benefits, including more lenient credit requirements and lower down payment options. However, not everyone is eligible for a VA loan.
To determine if you qualify, there are certain requirements that must be met. By learning about VA loan requirements, you can begin to evaluate your own eligibility and explore the possibilities that this loan type may offer.
Find a Lender
When it comes to finding a lender for your VA loan, it’s important to do your research to ensure you’re getting the best rates and terms possible.
Fortunately, you can easily research the best VA loan lenders online to compare their rates and loan products. This allows you to shop for the best lender that can provide the most suitable loan for your specific needs.
By taking the time to compare lenders and their offerings, you can save yourself thousands of dollars over the life of your loan.
Don’t settle for the first lender you find — dig a little deeper and find the lender that’s the perfect match for your needs.
Gather Documentation
Now that you’ve found a lender, it’s time to get the paperwork together. To apply for a VA loan, you’ll need to provide certain documents for review.
This includes income and asset information, bank statements, current mortgage information (if applicable), credit reports and scores, proof of military service (DD214 or NGB-22 Form), and more.
It’s recommended to set aside some time during this step in order to thoroughly review all of the documents and ensure accuracy.
Apply for the Loan
Now that you have all of the necessary documents in order, it’s time to submit your loan application. This can typically be done online or with the help of a lender representative.
When applying for a VA loan, there are certain factors that lenders take into consideration such as credit score and debt-to-income ratio.
It’s important to remember that even if your credit score isn’t perfect, VA loans still offer competitive terms and can help veterans with less-than-stellar credit histories secure financing.
Wait for Approval
Once you have submitted your loan application, it’s time to wait for approval. The lender will review all of the documents and compare them with VA requirements to determine eligibility.
Generally, this process can take about a week or two — depending on how quickly the lender is able to review all of the information provided.
Additionally, the waiting period can be extended if you have any outstanding debts that need to be paid off or other issues that need to be addressed.
Sign the Documents and Close
If your loan is approved, you’ll be required to sign the documents and close on the loan.
It’s important to read all of the documents thoroughly before signing them, as they can contain significant terms that may affect your financial decision-making in the future.
Once all of the paperwork has been finalized, it’s time to begin your journey as a homeowner. Keep in mind that you may be required to pay closing costs, so make sure you factor this into your budget.
Securing a VA loan can be a daunting task, especially without the right guidance.
Taking the time to understand your eligibility requirements and collect the necessary documentation, researching your options with lenders, submitting an application with all information requested, and attending a closing to sign documents puts you one step closer to reaching your goal of homeownership.
Although there are many required components that must be fulfilled prior to obtaining this type of loan, following this 6-step guide has provided helpful insight on ultimately achieving success.
All in all, it is worth taking the extra effort to secure a VA loan as it opens up countless opportunities for potential homeowners within the military community.