The VA home loan is the best mortgage available in today’s market. This loan program helps eligible veterans buy homes with no money down and no monthly mortgage insurance.
When you’re ready to take advantage of your VA loan benefits, you should start by applying for VA loan pre-approval.
Your pre-approval letter will show your price range so you can go house hunting with confidence. Pre-approval also shows home sellers you’re a serious buyer who has the backing of a VA lender.
You could think of a pre-approval as a training exercise. When you apply for pre-approval, you’ll go through the motions of applying for a VA loan, except no money changes hands.
The pre-approval process will show how your personal finances would perform if you were applying for a real mortgage loan.
Through this process, you’ll learn:
There’s nothing like feeling confident and ready before you make an offer to buy a home. Pre-approval is an excellent way to prepare.
Like a pre-approval, getting prequalified for a VA mortgage can tell you a lot about your home buying power. But a pre-qualification doesn’t have the authority of a pre-approval.
That’s because getting pre-approved requires real financial documents, like W2 forms or pay stubs, so the lender can verify the data and show you a loan estimate based on facts.
With a prequalification you tell the lender how much you earn and how much money you have saved, and the lender estimates your interest rate and mortgage payment based on the numbers you gave.
It’s a subtle difference, but it’s also a difference with real-life effects. When you have a pre-approval letter in hand, real estate agents and home sellers can expect you’ll follow through on the home purchase, all the way to the loan closing.
Ready to take the next step toward homeownership? Here’s how:
VA loan underwriting works a lot like other types of loans, including conventional loans and FHA loans. Your lender may ask for:
Gathering this information before you start the application process will save a lot of time.
The Department of Veterans Affairs runs the VA loan program and insures VA mortgage loans. But the department does not lend money.
Instead, the VA partners with private lenders who loan money to qualifying veterans and current military service members.
Not every VA-approved lender works the same way. You could get a better mortgage rate or better customer service with some lenders, for example. It’s possible one VA lender could deny your loan while another one approves it.
So narrow down your list of possible lenders by reading customer reviews or talking to other veteran homeowners before you apply for pre-approval.
Now it’s time to put all the pieces together. If you’ve chosen an online lender you should be able to apply for pre-approval and upload your documents using your computer or smartphone.
If you’re working with a traditional bank or credit union, you may need to fill out a traditional application, though most financial institutions offer online applications.
You’ll benefit from a conversation with a loan officer even if you’re an online borrower. Your assigned loan officer should take the financial data you’ve submitted and help connect you with the right mortgage loan.
With home loans, small details can make a big difference. For example, getting a 15-year loan term instead of a 30-year term could save thousands of dollars in interest charges, but it would require a higher monthly payment, too.
It’s even possible you could save more money by getting a conventional loan instead of a VA loan if you have an excellent credit score and the ability to make a large down payment.
Your loan officer can help you make these decisions.
You’ll receive a pre-approval letter showing your maximum loan size and other details about your borrowing power and costs.
With the letter in hand, you’ll be able to make confident decisions about your price range. When you make an offer to buy your next primary residence, the home’s owner will know your offer has a VA-approved lender’s backing.
But the pre-approval isn’t a guarantee that your loan would be approved, especially if you lose income, add more debt, or spend money from savings before making your loan application. So you should try to avoid big financial changes after getting pre-approved.
VA loans are approved much like other loans. The income, assets, and credit information on your loan application will be examined.
Your pre-approval process won’t require every document required for your full loan application. But it never hurts to be prepared just in case. If all goes well with the pre-approval, you’ll likely be making a full application soon anyway.
You can use this checklist to get all your information in one place before starting your home buying process:
If you are applying for a VA streamline refinance — sometimes called a VA Interest Rate Reduction Refinancing Loan (IRRRL) — then much less documentation will be required. For more information, see our VA streamline page .
VA home loans are only for eligible properties as defined by the Department of Veterans Affairs . These include but may not be limited to:
The property must also meet standards set by VA called Minimum Property Requirements (MPRs). For an in-depth look at MPRs, see our blog post .
Speaking with an experienced VA loan specialist will give you a good idea if the property you are considering will qualify for VA financing.
Download a PDF of this list here.
The VA Home Loan Program is an excellent option for active-duty military personnel as well as non-active duty veterans. The program is also open to many National Guard members and Reservists, and some surviving spouses of veterans can get this benefit.
Because these loans are guaranteed by the Department of Veterans Affairs, your mortgage lender is able to pass many benefits on to the borrowers. If you are eligible, be sure to take advantage of your benefits to save.
You can get pre-approved by contacting a VA-authorized mortgage lender, assuming you meet the service requirements of the VA loan program. The lender will assess your personal finances and credit score, determining whether you could qualify for a mortgage loan.
Borrowers can usually complete the pre-approval process within a couple of days. Then, the pre-approval will last for a specific amount of time, usually 60 to 90 days. If you don’t complete your loan application before the pre-approval expires, you may need a new pre-approval to proceed with your loan.
Yes, you can get a VA loan pre-approval just like you would with a conventional loan or FHA loan. A pre-approval helps define your price range and shows buyers you’re a serious buyer, one that can likely finalize a mortgage loan.
The VA does not set a minimum credit score for VA loans. Instead, the VA lenders who underwrite these loans set their own qualifying standards. Most VA-approved lenders look for credit scores of 620 or higher, though you may be able to qualify with a lower score with some lenders.
Getting a VA loan pre-approval means you can likely get approved for a mortgage loan. If your pre-approval letter includes conditions, you’ll need to meet them before beginning your loan process. Pre-approval is not a guarantee that you can get final approval.
The terms prequalification and pre-approval are used interchangeably by some lenders, but there is a difference you should know about. A prequalification may not use documents to estimate your borrowing power. Instead, the process may use ballpark estimates. Because of this, a prequalification could be based on old or inaccurate information.
You’ve earned the privilege to apply for this great loan program. Call (866) 313-9804 to speak with a mortgage professional, or complete our no-obligation, simple contact request form to speak with one of our experts.
VA Home Loan Programs
Lower your interest rate and monthly mortgage payment quickly and inexpensively.
Turn your home equity into cash and reduce your mortgage rate at the same time.
Buy a home with no down payment, competitive interest rates and no PMI.
VA Loan Eligibility
VA Loan Resources
Please contact our support if you are suspicious of any fraudulent activities or have any questions. If you would like to find more information about your benefits, please visit the Official US Government website for the Department of Veteran Affairs or the US Department of Housing and Urban Development.
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