VA home loan processing – How is it done?


Home loans help you in financing or refinancing a home. However, not all can obtain a home loan too easily and that is because the eligibility criteria are stringent enough. In such a situation, you can go on to obtain a VA loan as it is easier to obtain a VA loan, in comparison to the other loans. There are various advantages of obtaining a VA loan. However, in order to obtain a VA loan, you need to under the details of VA loan processing.

How is a VA loan processed?

A VA loan is processed only through those lenders who can offer VA loans. It is not too complex a process, but it is always better to have a clear understanding of the same. So, the process involved is:

  1. You will have to contact a VA lender – You cannot obtain VA loans from any and every lender. It will have to be a specific type of lender who has approval to offer loans as per the VA guidelines. So, in order to obtain a VA loan, you will have to contact a VA lender.
  2. Fill out the loan application form – As you will start shopping for the loan, you will receive a pack of documents for completing the pre-approval process. This pack of documents will have all kinds of details which you need to know for obtaining a VA loan and also the application forms. You will have to complete all of this paperwork and send to the concerned department, after which the actual application process starts rolling. The VA prlog bad credit personal loans approval experts verify the documents sent by you, in order to make sure that all of the information is correct.
  3. Sign the purchase agreement – It is extremely important for you to sign and get a purchase agreement so that you can negotiate with the lenders for better offers. You can negotiate for better interest rate. Without the purchase agreement, you will not be able to enjoy all of the benefits of a VA loan like that of no down payment and no up-front loan costs.
  4. Underwriting and closing will ensue – After all of the above is done, underwriting and closing is going to ensue. That is, after you get the contract, the documentation goes for another review with the experienced underwriters. Only after the underwriter verifies the financial information provided, the loan gets actually approved. After the loan gets approved, the closing date is determined when you will be required to sign more paperwork.

So, this is how the VA home loan processing is done. When you apply for the loan, the only thing that the lender does is check with your credit score, to find out if you are actually eligible for the loan. The, they check with your debt to income ratio. It matters a lot in case of loan applications. Although, the eligibility criteria are less stringent in case of the VA loans, you need to have at least a decent debt to income ratio.




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