Applying for a VA home loan is a multi-step process. From getting a COE to deciding on a loan, it takes some time to secure financing for the purchase of a home. But did you know there are ways to speed up the process and get approved faster?
First, before getting a VA loan, it’s important to figure out which type of loan you need. For example, decide if a VA backed mortgage or VA direct loan is best for you. Knowing this upfront can minimize the time you spend on finding a lender.
For instance, do you plan to pursue a VA home refinance, or are you planning to purchase a house? Are you interested in VA loan rates to lower the amount you pay in interest? Answering these questions before you apply will help speed up the process as well.
When you’re applying for a VA home loan, you will need to prove your military eligibility. You must apply for a Certificate of Eligibility (COE) through the VA if you do not already have one. All lenders will ask for this document during the application process.
The next step in applying for a VA home loan is to find a mortgage lender approved by the VA. The only exception to this step is if you qualify for a Native American Direct Loan (NADL), since this type of loan is issued directly from the federal government.
There are dozens of VA-approved mortgage lenders to choose from. It’s a good idea to get a VA loan quote from multiple lenders so you can compare loan details and find the best one for you.
Some lenders may offer better VA mortgage rates than others. Likewise, you may qualify for a zero down payment VA loan with one mortgage lender over another. Comparison shopping is extremely important if you want to find the best value.
Getting a VA home loan preapproval from your preferred lender can help you get the money you need to buy a home more quickly. Preapproval refers to the process of examining your finances to determine how much house you can afford.
Mortgage lenders provide a VA home loan preapproval to help you better understand your buying power. For example, if you are approved for a home loan of $300,000, you know not to waste your time looking at homes above this price point.
Most preapproval letters are only good for a certain amount of time. Once you receive it, it is recommended to begin your home search before it expires.