There are four basic steps in the VA home loan application process.
Step 1: Select a Lender – A lender can help you review your financial situation and credit history and determine the loan amount you qualify for. Choose a lending institution that is VA approved and can handle home loans.
Step 2: Selecting a Home – Select a home and discuss the purchase with the seller or selling agent. Sign a purchase contract conditioned on approval of your VA home loan. Present your Certificate of Eligibility (if available) to the selected lender and complete a loan application. You can also get your Certificate of Eligibility from your lender through the Automated Certificate of Eligibility (ACE) system. This Internet-based application can establish your eligibility and issue an online Certificate of Eligibility in a matter of seconds. However, not all requests can be processed through ACE – only those Veterans for whom the VA has sufficient data are eligible for this streamlined process.
Step 3: Submit the Application – The lender will process the required loan documentation and develop all credit and income information. They will also request VA to assign a licensed appraiser to determine the reasonable value for the property. A Certificate of Reasonable Value will be issued.
NOTE: You may be required to pay for the credit report and appraisal unless the seller agrees to pay.
Step 4: Loan Approval, Funding, and Closing – The lender will let you know the decision on the loan. You should be approved if the established value and your credit and income are acceptable. You (and spouse) attend the loan closing. The lender or closing attorney will explain the loan terms and requirements as well as where and how to make the monthly payments. Sign the note, mortgage, and other related papers.