Navigating the VA Home Loan Process: A Step-by-Step Guide for Veterans 

Hey there, veterans! If you’re considering buying a home using a VA loan, you’ve come to the right place. We believe that the VA loan is the absolute best loan for those who have served our nation. In this guide, we’ll walk you through the entire VA home loan process—from the moment you start thinking about purchasing a home to the day you receive your keys. Let’s dive in!

Before You Start: Key Considerations

Determine Your Monthly Budget 

• Assess Your Comfort Level: Figure out what you’re comfortable spending on a monthly mortgage payment. This ensures your loan fits within your household budget. 

• Plan for the Future: Consider any upcoming expenses or financial changes that might affect your ability to make payments. 

Prepare for Closing Costs and Prepaid Items 

• Understand the Costs: Be prepared for additional expenses at closing, typically amounting to about 3% of the loan amount, though this can vary by location. 

• Budget Accordingly: Include these costs in your financial planning to avoid surprises. 

Know Your Down Payment Options 

• Zero Down Payment: VA loans often don’t require a down payment, but it’s good to know all your options. 

• Consider Making a Down Payment: If possible, a down payment can lower your monthly payments and reduce the amount of interest paid over the life of the loan. 

Choose a VA Loan Professional 

• Work with Specialists: It’s crucial to work with someone who specializes in VA loans. 

• Experience Matters: Just like you wouldn’t want an inexperienced technician working on complex equipment, you want a professional who knows the ins and outs of VA loans to smooth out your process every step of the way. 

The Initial Consultation

When you speak to a loan professional, they’ll help create a personalized plan tailored to your specific needs. 

Discuss Your Budget and Financial Goals 

• Open Dialogue: Be honest about your financial situation and what you hope to achieve. 

• Set Realistic Expectations: Align your goals with what you can comfortably afford. 

Understand the VA Loan Process 

• Thorough Explanation: Your loan professional should walk you through each step of the process. 

• Ask Questions: Don’t hesitate to ask for clarification on anything you’re unsure about. 

Determine a Suitable Price Range 

• Based on Your Budget: They’ll help you identify a price range that aligns with your financial comfort level. 

• Avoid Overextending: Remember, qualifying for a certain amount doesn’t mean you should spend that much. It’s about finding a payment that’s comfortable for you. 

 Gathering Required Documentation

You’ll need to provide several documents. Think of it as the “Rule of Twos”: 

• Two Years of W-2s 

• Two Years of Tax Returns 

• Two Years of 1099s (if applicable) 

• Two Months of Bank Statements 

• Include Every Page: Even if a page is blank, it needs to be included. 

• Copy of Your ID 
• Certificate of Eligibility (COE): This proves your eligibility for a VA loan.  You can get this directly from the VA or your lender can in just a few minutes. 

Receiving Your VA Pre-Approval Letter

• Shows You’re Serious: This letter demonstrates to sellers that you’re a serious buyer. 

• Know Your Price Range: It helps you and your real estate agent understand what you can afford. 

 House Hunting and Making an Offer

• Choose your real estate agent. If you don’t already have an agent, your mortgage professional can refer you to a great one! 

• Start Shopping: With pre-approval in hand, begin your search for the perfect home. 

• Make an Offer: When you find a home you love, submit an offer through your real estate agent. 

While a VA loan requires no down payment, you will need to provide an “earnest money” deposit with your offer.  This tells the seller that you are a serious buyer.  Your deposit will be credited toward the final purchase price.  Don’t worry, this deposit is refundable based on certain protections in the offer you write.  

Under Contract and Loan Processing

Under Contract 

• Accepted Offer: Once your offer is accepted, you’re officially under contract. 

• Timeline Begins: The VA loan process typically takes about 30 days from this point. 

• Schedule Your Home Inspection: While there will be an appraisal on your new home it’s only to determine the value and that it meets basic requirements.  A home inspection goes deeper to ensure that your new home is in good shape from the foundation to the roof.  Your real estate agent will be able to refer you to a trusted home inspector. 

Loan Processing 

• Employment Verification: Your lender will verify your employment status. 

• Underwriting Review: An underwriter will assess your loan package. 

• Appraisal Ordered: An appraisal ensures the property’s value matches the loan amount. This does not replace the inspection mentioned above. 

Conditional Approval 

• Additional Documentation: The underwriter may request more documents, such as: 

• Updated Bank Statements 

• Recent Pay Stubs 

• Letters of Explanation for any discrepancies or questions in your file. 

• Respond Promptly: Provide requested information quickly to keep the process moving. 

 

Clear to Close

• Final Approval: This is the green light you’ve been waiting for! 

• No More Document Requests: You’ve met all the lender’s requirements. 

• Coordination with Title Company: The lender will finalize details with the title company, including your final cash to close. 

• Start Packing! A good lender will have you clear to close early so that you have time to pack and schedule your movers and utilities. 

 

Closing Day

• Sign the Paperwork: You’ll sign all necessary documents to finalize the purchase. 

• Receive Your Keys: After signing, the home is officially yours! 

 

Celebrate Your New Home

• Move In: Begin the next chapter in your new home. 

• Stay Connected: Keep in touch with your loan professional for any future needs.

Final Thoughts 

While the VA loan process might seem like a lot of steps, with the right guidance, it can be a smooth journey to homeownership. If you have any questions about the VA loan process or your eligibility, please reach out to us. 

Thank you so much for your service, and here’s to your dream of homeownership! 

For personalized assistance or more information, don’t hesitate to contact us. We’re here to help you every step of the way.