The VA Loan and Mortgage Process

What are the basic steps for applying for a receiving a VA loan? This section will walk you through the VA loan process.

VA Loan Eligibility

In order to secure your VA home loan you'll need to produce your lender with your Certificate of Eligibility, or COE. This shows that you've qualified for this military benefit.

Eligibility Requirements

• You have completed at least 90 days of active duty service.
• You have at least six years of service in the Reserves or National Guard .
• You have served at least 181 days of active duty service during peacetime.
• You have 90 days of cumulative service under Title 10 or Title 32. For Title 32 service, at least 30 of those days must have been consecutive.
• You’re the spouse of a military service member who died in the line of duty, or as a result of a service-related disability.

Choose a VA Loan Lender

Find a VA specialty lender with extensive knowledge about the VA loan process. Selecting an experienced VA Loan lender can help make for an easier and quicker loan process. 

Stay Local

It is so very important you understand local lenders from regional lenders. Loans also get sold no matter who you are with so don’t be clouded by brand loyalty. Ask and compare fee structures, not just rates. National lenders will often have loan origination points (% of loan) typically 1%. while our lenders will charge a flat fee of 0-$1000, often thousands less than national guys. ex.$300,000 house will likely cost you around $3000.

Find Your Home

Go house hunting with a real estate professional who specializes in the VA home loan process. Their knowledge can help you get the most out of your benefits. A knowledgeable agent can help you negotiate seller-paid fees. 

VA Appraisal and Loan Processing

Your lender will begin with the VA appraisal process. While you’re waiting for appraisal documents, you’ll need to submit documents to your VA-approved lender to show you have the ability to qualify for the loan. If the home passes the appraisal and VA property requirements, and it’s verified by the lender that you qualify for your loan, the underwriter will give their stamp of approval.

Key Points of a VA Loan

1. $0 money down payment
2. 0% Mortgage Insurance
3. Reusable
4. No debt to income ratios (lenders do however)
5. Lower interest rates and fees than other loans
6. Can be used more than once and for investments (learn more)
7. No max loan limits. However VA does limit Guaranty
8. First-time use of VA funding fee is 2.3% and 0% with disability
9. Average 30 days to close on a VA loan
10. The appraiser has 10 business days in Pierce County
11. Cannot pay real estate commissions
12. Closing cost and debt can be paid by seller
13. VA renovation loans are available
14. VA does not provide the loan, lenders do. VA guaranties the loan.
15. VA can Help if you struggle with payments

Closing on Your VA Home Loan

At closing, the property legally transfers from the former owner to you. Closing requires you to sign documents confirming you understand and agree to the terms of the loan. You will need to provide proof of homeowners insurance and pay closing costs, if required.