You’ve been shopping around for a new home, but aren’t sure of the steps to take to apply for a VA home loan. We’ve developed a simple step-by-step guide and infographic to help get you into a new home this year.
Follow these 6 steps when you apply for a VA home loan:
Step 1: Check If You’re Eligible
Our list of VA home loan eligibility requirements goes into good detail and may help to determine if you qualify. Here are some basics:
- U.S. Armed Forces: your eligibility largely depends on when and how you served the United States. Check out our list above for specific requirements regarding certain wartimes, peacetime, National Guard, and Selected Reserve.
- Spouse of a vet: You may be eligible if you are the spouse of a veteran who has died in action, died of service-related disabilities, or who was classified as MIA or a POW.
Our list reviews several other eligibility requirements, including if you’re not a veteran/spouse of a veteran, and income and credit requirements.
Step 2: Find A Lender You Can Trust
After determining your eligibility, your next step is to locate a lending institution that participates in the VA program, such as Easy Mortgage. Asking friends for recommendations is another good way to find a lender that you can trust.
Step 3: Obtain A Certificate Of Eligibility
The Certificate of Eligibility (COE) plays a large role in the application process, as it verifies to the lender that you meet all of the eligibility requirements. A COE can be obtained through your VA-approved lender, like Easy Mortgage, online through the VA eBenefits portal, or by mail with a VA Form 26-1880.
Step 4: Sign A Purchase Agreement
Work with your real estate agent to negotiate a purchase agreement for your new home. Be sure to include a “VA Option Clause” in the purchase and sales agreement. You may also want to allow for a way to “escape” the contract with no penalty in your agreement in case you aren’t able to get the loan.
Step 5: Apply For Your VA Home Loan
Work with your lender to complete the loan application. Once the application is complete, your lender will order a VA appraisal to begin processing your information. After that’s processed, your lender will decide whether or not to grant the loan.
Step 6: Closing The Deal
Once everything’s approved, your lender will then choose a title company, and a representative or attorney to coordinate the transfer of property.