How to Apply for a VA Loan: A Step
If you’re a veteran or active-duty military member, a VA loan could be your ticket to owning a home. But how do you apply for one? In this guide, we’ll walk you through the process step by step.
Step 1: Determine Your Eligibility
Before you can apply for a VA loan, you need to make sure you’re eligible. To be eligible, you must meet one of the following criteria:
- You served 90 consecutive days of active service during wartime.
- You served 181 days of active service during peacetime.
- You have more than six years of service in the National Guard or Reserves.
- Your spouse died in service or as a result of a service-connected disability.
If you meet one of these criteria, you can apply for a VA loan.
Step 2: Get Your Certificate of Eligibility
To apply for a VA loan, you’ll need a Certificate of Eligibility (COE). This document proves that you’re eligible for the loan. You can get your COE in one of three ways:
- Apply online through the VA’s eBenefits portal.
- Ask your lender to request it for you.
- Mail in a completed VA Form 26-1880.
The VA will review your application and send you your COE via mail or email.
Step 3: Find a Lender
VA loans are offered by private lenders, not the VA itself. So you’ll need to find a lender that offers VA loans. You can search the VA’s lender database or ask friends and family for recommendations.
Once you’ve found a lender, you’ll need to provide them with your COE and other financial documents, like tax returns and bank statements.
Step 4: Get Preapproved
Before you start house hunting, you’ll want to get preapproved for a VA loan. This process will give you an idea of how much you can afford and make you a more competitive buyer.
To get preapproved, your lender will review your financial documents and credit history. They’ll then give you a letter stating how much you qualify for.
Step 5: Find a Home
Now comes the fun part: finding your dream home. Make a list of your must-haves and wants in a home, and start looking online and attending open houses.
When you find a home you love, make an offer. If your offer is accepted, you’ll move on to the next step.
Step 6: Get an Appraisal
To make sure the home is worth the amount you’re borrowing, the VA requires an appraisal. The appraisal will be conducted by a VA-certified appraiser.
If the home appraises for less than the sales price, you may need to renegotiate the price or come up with a larger down payment.
Step 7: Close the Loan
If the home appraises at or above the sales price and all other conditions have been met, it’s time to close the loan. At the closing, you’ll sign a stack of documents and pay any closing costs.
Congratulations! You’re now a homeowner with a VA loan.
In summary, the steps to apply for a VA loan are:
- Determine your eligibility
- Get your Certificate of Eligibility
- Find a lender
- Get preapproved
- Find a home
- Get an appraisal
- Close the loan
Applying for a VA loan can be a complex process, but with the right guidance, it can be a breeze. If you’re a veteran or active-duty military member, a VA loan can be a great way to achieve your dream of homeownership.