The first step in the VA mortgage loan process is to get a pre-approval from a VA approved lender. In order to get pre-qualified, fill out an online VA loan application with a qualified VA lender and provide the relevant info required by them. You can also find VA approved lenders in all 50 states plus the District of Columbia on the VA.gov website.
VA Loan Pre-Approval Process
One thing to consider before submitting a pre-approval request is to determine the loan amount you want to borrow. Let’s say you request and receive a letter for the maximum allowed under VA mortgage limit for your location. Then you find the perfect home and it is for a sum significantly below the price set for you in your pre-approval letter which frankly is likely to be $417,000, the maximum for most locations.
Do you want the seller to know you are good for the full $417,000 when he or she is selling at, say, $317,000? That sounds like an invitation to pick your pocket between now and closing date. To avoid ending up in such a situation it is preferable to get two letters: the first would be for the maximum the lender would loan you (this would be of interest to the real estate broker) and the second letter would be for the exact price you want to offer on a specific home (this is the one the real estate broker would submit with the purchase offer). Most VA loan lenders will be more than willing to provide you with both letters of pre-approval.
If I get a VA loan, can a seller not accept?
Rejection is never an easy thing. If the seller reject the VA loan pre-approval you provide, it probably really means that the seller’s real estate broker has refused to work with a VA loan. After all, why would the seller care?
At closing they receive the funds as required by the real estate sale contract. But the VA loan guidelines do not allow for the brokers fees to come from the buyer. Oops. So what has to happen? Again, it’s pretty easy to predict—the seller tucks the broker’s fees into the price and away you go. So, the seller rejects the loan? I would predict the rejection has little or nothing to do with the loan and a lot to do with something that is unlawful like discrimination based upon race, gender, life style or even military status.
Don’t forget that for this whole VA loan process to hold together, the appraisal must be for a sum that matches or exceeds the sale price.
Take the time today to speak with one of our VA home loan experts about your situation and find out how the VA home loan program can help you.