12 Steps in the VA Home Buying Process

The VA (Veterans Affairs) loan process is designed to assist eligible veterans, active-duty service members, National Guard members, Reservists, and some surviving spouses in obtaining affordable home financing. Here is an overview of the typical steps in the VA loan process:

1. Determine Eligibility:

• Veterans must meet specific service requirements to be eligible for a VA loan. This includes a minimum length of service, depending on the era in which they served. Reservists and National Guard members may qualify after six years of service.

2. Obtain a Certificate of Eligibility (COE):

• To apply for a VA loan, eligible individuals need to obtain a Certificate of Eligibility. This document verifies their entitlement to the VA loan benefit. It can be obtained through the VA, often with the assistance of a lender.

3. Select a VA-Approved Lender:

• Choose a lender that is approved by the VA to originate VA loans. Many financial institutions, including banks and mortgage companies, are VA-approved lenders.

4. Pre-Approval:

• Get pre-approved for a VA loan by submitting necessary financial documents (income, credit, employment history) to the lender. This helps determine the loan amount you qualify for and makes the home shopping process more efficient.

5. Home Shopping:

• Work with a real estate agent to find a home that meets your needs and is within your budget. Ensure the property meets VA requirements.

6. Make an Offer:

• Once you find a suitable home, make an offer. The purchase agreement should include a VA option clause, protecting you from losing your earnest money if the home doesn't appraise for the purchase price.

7. VA Appraisal:

• The VA requires a property appraisal to ensure it meets minimum property requirements. The appraisal is conducted by a VA-approved appraiser.

8. Underwriting and Approval:

• Submit all required documents to the lender for underwriting. The lender reviews your financial information, the appraisal, and ensures all VA requirements are met. Once approved, the loan moves to the closing phase.

9. Closing Disclosure (CD):

• Review the Closing Disclosure, which details the final loan terms, closing costs, and other relevant information. Ensure you understand all aspects before proceeding.

10. Closing:

• Attend the closing meeting to sign the necessary documents. This includes the mortgage note, deed of trust, and other loan-related paperwork. You'll also pay any closing costs unless the seller agrees to cover them.

11. Funding and Disbursement:

• The lender funds the loan after all documents are signed and approved. The funds are disbursed, and you officially become a homeowner.

12. Move In:

• Congratulations! Move into your new home and enjoy the benefits of homeownership secured through a VA loan.

It's important to note that the VA loan process may vary slightly depending on the lender and local regulations. Working with a knowledgeable VA-approved lender can help streamline the process and ensure a smooth experience from eligibility determination to closing.