Many Military homebuyers in Charlotte County are drawn to the VA mortgage. The VA home loan is one of the few programs that still allows buyer to purchase a home with no money down. Many VA applicants want to know how to get started and approved for a VA loan. Where to start the VA loan application , etc.
Before we answer all these questions, it’s important to know exactly what a “ VA loan pre-qualification” and “VA loan pre approval” actually mean in the lending world. VA prequalification means that based on the information you the buyer has provided to your VA mortgage specialist, you generally meet the guidelines that are set for VA home loans. However, keep in mind that just because you have your VA loan benefits, doesn’t mean you are automatically approved for a VA mortgage. VA mortgages are like all other mortgages and have min qualifying standards that must be met. Vet’s are no different than other applicants as they must meet the credit and qualifying standard to get the loan.
The VA pre-qualification is basically a brief snapshot since none of your underwriting documentation (paystubs, assets, W2, and tax returns) is verified at this point. A basic loan pre-qualification just gives you the buyer a good idea of whether or not you can obtain a VA approval and the approximate dollar amount. The loan officer will tell you based on your credit, debts and income if you are likely to be approved and for how much.
Now, the VA pre APPROVAL process gets into a little more detail. During this VA pre-approval process everything is verified. To get your VA loan pre approval you will first speak with a VA loan officer either on the phone, online, or face to face. The loan specialist will ask you a few general questions to get an idea about your current situation, your goals, your income and the amount of funds you will have when it comes time to close on your new Florida home.
Your VA loan specialist will ask:
Monthly Income: This is the amount of total household income from all borrowers that will be on the VA loan. If you will be the only person on the loan, then only your income will be used. Keep in mind; this is the monthly gross income, the income before any withholdings are deducted. Income will be verified by paystubs, W2’s and tax returns for the past two years.
Current Employment Status: Along with how much income you make each month, your VA loan specialist will want to know the nature of your job, what you do there and how long you’ve been at your current employer. VA mortgage pre approvals generally ask for approximately two years of current, full-time employment. If you have part-time income in addition to your regular job, be prepared to provide two years’ worth of part-time income from that job as well. All job history will be verified by standard employment verification.
Savings and Assets: Your VA loan specialist will also prequalify you based upon the amount of money needed to close on an VA loan plus allow for additional closing costs that may be associated with the new VA loan. This amount doesn’t necessarily mean how much money you have in your bank accounts today, but how much you will plan on having when it comes time to close on your new home. Furthermore, this doesn’t mean you need money saved up as the VA loan is 100% financing. It just depends on your home purchase contract and the details. However, like all other loan programs, the VA program requires closing costs. These closing costs can be paid by you the buyer, or the sellers.
Now that we discuss the difference between VA loan pre approval and pre qualification, let’s talk about what borrowers should be doing …. and NOT doing once pre approved. First, borrowers do not want to change employment without talking to their loan advisor first. Your VA loan pre approval is strongly based on your current employment. In addition, if your income changes ( up or down) please relay this information to your loan advisor ASAP. Applicants also want to ensure they don’t purchase anything big – don’t go out and purchase a new car, charge up credit cards, or take out any new lines of credit. All of these things could significantly impact your debt to income and the loan pre approval.
To get your full VA loan pre approval, all it takes is a little time and answering a few questions. Once you have determined that you’re ready to make the move and apply for a 100% VA purchase mortgage, your loan advisor will then begin the documentation process that will complete the VA application. Questions? Please call us at ph: 800-743-7556 or just submit the quick Info Request Form here and a VA loan specialist will contact you 7 days a week.
Proudly serving all of Charlotte County 7 days a week including Cleveland, Grove City, Palm Island, Placida, Port Charlotte, Punta Gorda, Rotonda and Solana