Here’s What You Need to Know About the VA Loan Pre-approval Process
It’s no secret that getting a mortgage pre-approval has its own benefits. The same thing goes for the VA’s mortgage pre-approval.
By getting pre-approved, eligible Veterans and Servicemembers will find the process to be useful.
For one, the pre-approval process will give you a clearer idea of what how much mortgage you qualify. With that in mind, you would know your home buying budget.
Besides that, getting a pre-approval will give eligible Veterans and Servicemembers buying power and will have more chances of successfully buying a home in a competitive housing market.
However, it’s important to understand its process so that it’ll be easy for VA borrowers to maneuver their entire home buying journey.
Here’s what you need to know about VA’s pre-approval process.
What should you expect?
First, expectations should be set. In getting your VA home loan pre-approved, it’s smart to know what to expect in the entire process. You have to keep in mind that pre-qualification is different from pre-approval.
In its simplest explanation, pre-qualification will only give you an estimate of how much mortgage you may qualify.
On the other hand, pre-approval will require verifying your information in order for lenders to give you an accurate value of how much mortgage you will carry out if you get a loan approval.
Defining these terms helps in setting your expectations before you go through the process itself.
However, you still have to know what you need to prepare and how the process will go. Specifics about what documents are needed and how the pre-approval will go will be explained below.Talk to VA loan experts today.
What documents do you need to prepare?
Like any other processes, you need to have enough preparation before you begin. In VA’s mortgage pre-approval process, here are the documents that your lender might need:
1. Government photo IDs
2. Copies of your pay stubs
3. Copy of your federal tax returns and W-2 statements for the past 24 months
5. Your employment history
6. Child care or divorce decree statements (if applicable)
7. Real estate assets and bank statements
Lenders may also look into your credit standing, debt-to-income ratio and details of your earning or income.
Just remember that the needed documentation and specific standards may vary by lender.
What about its process?
Eligible Veteran borrowers should contact a VA specialist to get started. Then, you will need to fill out the needed online forms.
After that, you have to secure your Certificate of Eligibility ( COE) to see if you’re eligible for a mortgage under the VA. You can either get one through a VA-approved lender or you can obtain one online.
Next, your VA-approved lender will look into your documents, your financial statements, and other needed information to verify your ability to carry out a mortgage.
Then you will receive a letter which will determine if you qualify for a VA loan.
The letter will also hold the information about how much mortgage you qualify for. When all of that’s done, you can now to begin your house hunting!Qualify for a VA home loan today.
There are still other processes you need to go through when getting a VA home loan. Thankfully, VA-approved lenders and VA loan experts are always ready to extend their help whenever it’s needed.Become a VA homeowner.