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How To Get Pre Approved For A Va Home Loan – A VA loan approval in its purest form is a true conditional commitment to make a loan, issued by a VA loan underwriter acting for a lender. Once you’ve achieved your VA loan approval, you’re ready to buy and close really quickly, as long as the property meets the lender’s criteria.
However, not all lenders will write a VA loan file with a specific asset or TBD This extra important step is a lot of work, and it may not produce a closing loan because there is no property yet This is often an unnecessary extra step However, extra effort is highly recommended for VA borrowers with marginal credit because the credit file has already been reviewed by the underwriter.
How To Get Pre Approved For A Va Home Loan
Unlike a prequalification, an approval is determined from a full review of the borrower’s documentation of the actual VA loan underwriter, not solely based on information discussed over the phone between the borrower and loan officer. Below, we’ll discuss the steps to get a VA loan approved…not just a VA loan prequalification.
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Watch this short video for a quick explanation of the difference between a VA loan pre-approval vs a VA loan pre-qualification:
When a veteran gets pre-qualified for a VA home loan, they provide an estimate of the loan size they will be able to obtain. This estimate is based on basic information provided by the veteran, often from a brief conversation with a loan officer. This conversation also does not require a credit check A thorough check of the credit profile and credit score is always recommended, especially for government loans such as VA loans.
Think of a VA loan prequalification as the first limited step that can take place before the actual VA loan approval in the home building process. You can get a general idea of your purchasing power then start shopping for a home But taking the extra step usually requires establishing a relationship with a reputable lender, who will then provide a strong letter demonstrating your qualifications as a VA buyer.
If you’re wondering how to get approved for a VA home loan, here are six quick and easy steps:
Tips For Getting The Best Va Loan Rate
Although many industry participants and borrowers use the terms “pre-approval” and “pre-qualification” interchangeably, there are some very important differences to remember.
A VA loan prequalification is usually performed by a loan officer, and that activity may or may not include a credit check – a big component in the approval process. Debt to income ratios can be calculated during this activity, but confidence cannot be applied to a high debt ratio without using the industry standard of automated underwriting.
There is no option for this step An employee of the lender must obtain a tri-combination credit report and resulting credit scores from all three credit bureaus. Unfortunately, the AUS or automated underwriting system can be run by any staff member of the lender, but the integrity and validity of the automated underwriting analysis results must be ensured by a VA underwriter. The most commonly used AUS software is known as Desktop Underwriter
Many mistakes can be made by inexperienced players in this process, but those fatal mistakes will be uncovered by underwriters – they do! And if the mistake is really fatal, then the loan will be rejected If you are in escrow to purchase, now is not a good time to find out you are not eligible!
Why A Pre Approval Is Crucial When Buying A Charlottesville Va Home
Valuable VA loan results are provided to borrowers by loan officers using AUS software, mostly without supervision. A new user of this tool can learn how to operate the software within a few hours and become somewhat proficient within a few weeks
A word of caution… As an anonymous VA borrower, you may not know if this user has included fatal errors. Anyone can input data into the software! Not all debts are equal A “civil paytab” can be simple, and some are notoriously complex, just like some self-employment tax returns. Thus, errors on income, debt ratio, residual income requirements and more can easily become a part of approval.
This is a classic “garbage in, garbage out” scenario, where the results are only as good as the experience of the software operator. If an experienced loan officer makes a mistake and prepares a VA loan approval letter for you, it may not be credible, leading you down an unfortunate path, headed for trouble.
The following chart breaks down the differences between pre-qualification and pre-approval when answering frequently asked questions about the VA home loan process:
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At SoCal VA Homes, we are committed to supporting you through the VA loan pre-approval process, up to TBD pre-approval, when needed. We go above and beyond to get you the right qualifications and make your offers attractive! We make the process easy and deliver great results with our unique and powerful program
We have a variety of calculators to help you get approved for a VA home loan Our VA mortgage calculator can help you estimate payments And our other calculator can work as a VA home loan prequalification calculator, as it breaks down all of your finances and shows you your debt ratio.
Mr. VA loan professionals are here to serve you, including Peter Van Brady who wrote the important book on VA loans: Buying a home can be difficult and stressful for many buyers. Buying a home when you are a service member can be equally difficult until you learn the amazing benefits of a VA loan It’s easy for people to talk about VA loans and how helpful they are, but do you really know the real ins and outs of it? Here are 6 steps involved in getting and using a VA loan for your next home purchase:
When it comes to home loans, not all lenders are created equal For starters, lenders who are approved by the United States Department of Veteran Affairs are only allowed to offer VA loans. Additionally, not all approved lenders specialize in VA loans Choosing a Lender Like choosing a real estate agent, you want to make sure the lender knows your unique situation and can tailor their services to meet your individual needs.
Va Home Loans And Va Mortgages
Some lenders offer both VA and conventional loans, but it’s often better to go with a lender who specializes in VA loans only. That way, you know you’re working with someone who has extensive knowledge of the subject
A Certificate of Eligibility or COE is required to prove that you meet the initial eligibility requirements to obtain a VA loan An experienced lender can help you get a COE, which is also certified by the Department of Veterans Affairs. The COE also tells the lender how much credit you have You need to provide information about the service In most cases, a COE can be obtained immediately through the lender’s website, however, there are instances when the COE cannot be found online and must be facilitated by the lender.
Not all VA loan recipients get pre-qualified because it is an optional step, however, getting pre-qualified can save you some time in the future. Getting pre-qualified requires an in-depth look at factors such as your income, credit score, employment status, marital status and outstanding debts. Getting pre-qualified gives you an idea of your budget and helps with house hunting It also prevents any unexpected surprises in undertaking the task, and also serves to point out any areas of your application where you may need improvement.
It should also be noted that getting pre-qualified does not mean you will be approved for a loan A VA loan requires final approval after the documents are completed, however, if you fill out the applications honestly and you get pre-qualified, there won’t be any major issues.
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This step includes looking at homes and working with a realtor to find the right home for you We recommend working with a real estate agent who specializes in VA sales because they are able to navigate the system and make sure they are taking advantage of any fees or expenses paid by the seller.
Once you find your dream home and sign the purchase agreement, you move on to the final stage of the VA loan process.
This step is taken care of by the lender The lender will order a VA appraisal by an expert that works with the Department of Veterans Affairs and verify that it meets the VA minimum asset requirements or VA MPR. This usually happens within 10 days of signing the purchase agreement
Once you pass the home appraisal and VA MPR, the lender will confirm that you qualify for the loan and then you’re on your way to home ownership.
How Personal Loan Pre Approval Works
Once everything is checked and confirmed by the underwriter, all you have to do is wait for the property to close and then get ready to move.
