How to Apply for a VA Home Loan: A Step by Step Guide
If you or your spouse have sacrificed to serve our country, then a mortgage guaranteed by the VA may be a viable option for you to finally buy your own home. In 2018, the VA backed over 610,000 home loans and account for nearly 10% of the mortgage market. Understanding how to apply for a VA home loan is the first step in taking advantage of one of the most powerful mortgages available on the market.
Home Financing for Military Members
This special type of mortgage, issued by qualified lenders, is available to most members of the military, veterans, reservists, and National Guard members. VA home loans are also available to spouses of military members that died during active duty or as a result of a service-related disability. Securing this type of financing for your next home requires proving you meet all eligibility criteria. Pending eligibility and approval, a VA loan can help make your dream of owning your own home attainable.
Benefits of a VA Home Loan
A VA backed mortgage is one of the most powerful financing options due to the benefits afforded to those that are eligible. Some of the key benefits of a VA loan include no down payment and no requirement for private mortgage insurance. Other benefits include a limit on the amount of closing costs charged and the removal of any penalty fee for early pay off. Additionally, you can get a VA home loan more than once and there is no requirement of being a first-time homebuyer.
What Do You Need to Apply for a VA Home Loan?
To apply for a VA home loan you’ll need some basic information on your military service and your income. Before applying be sure to have:
- A government-issued photo ID
- 2 years worth of W-2 statements
- Bank Statements (as well as statements for any investment or retirement accounts)
- Last 2 years of federal tax returns (if self-employed or claiming rental income or 1099)
- A Certificate of Eligibility (COE):
- Copy of your DD-214 (veterans)
- Statement of Service Letter signed by your commanding officer (active duty)
How to Apply for a VA Home Loan
While the process of getting a VA home loan can be overwhelming, it doesn’t have to be. Simply follow this step-by-step guide to help you through the process.
- Step 1: Find a participating lender
- Step 2: Get your Certificate of Eligibility (COE)
- Step 3: Apply for pre-approval
- Step 4: Work with a real estate professional to find a home
- Step 5: Make an offer and sign a purchase agreement containing a “VA Option Clause”
- Step 6: Finalize your VA loan application
- Step 7: Close on your new home
Working with a loan officer from a qualified lender can help with the VA loan application process.
Is a VA Loan Right for You?
Deciding on whether a VA loan is right for you depends on your eligibility. If you are eligible, then it can be a great option if you don’t have the cash on hand to cover the cost of a down payment or high closing costs. This can be especially helpful when your family is relocated. However, deciding if a VA loan is the right financing option for you and your family is dependent on your individual set of circumstances. Your best option would be to discuss your situation with a loan officer at a qualified lender who can help you decide on the best financing option available.
Start the Process Today!
At Mortgage Solutions Financial, we can walk you through the process of how to apply for a VA home loan. They will help you make sure that you have all of the necessary documentation to prove eligibility and work with you throughout the entire process. If you’re considering a VA loan or want to learn more about the financing options available, contact us today!
