Purchasing a home can be a nerve-racking experience, especially when one doesn’t understand all the steps involved like first time home buyers. The VA mortgage purchase process isn’t a whole lot different from other conventional or FHA home loans. From start to finish, the VA closing process only has a few steps, below we will outline each.
VA Mortgage Pre-qualification
The first step is the most important, you need to know where you stand in regards to mortgage approval. The entire VA application process only takes a 15 min to complete. During the process the lender will ask for basic questions and obtain a credit report.
VA lenders are generally looking for a credit score of at least 620, although the benchmark can vary slightly. In addition to learning about your credit profile, the mortgage company will want to have a better understanding of your home buying goals and objectives. They’ll ask about your income and your employment and try to identify any potential red flags at the outset.
VA Loan Pre-approval
Compared to pre qualification, the VA loan pre-approval is a more involved process. Lenders will want to get a much closer look at your financial situation and your ability to handle a mortgage payment. They will also collect supporting documents to prove in the information given on the application. You’ll fill out documents and paperwork, and lenders will start working to verify your income and other important information. The end result should be a preapproval letter that details how much a lender is willing to loan, provided certain conditions are met.
Pre-approval letters are increasingly important in today’s housing market. Real estate agents and home sellers expect to see these letters included in a purchase offer. Additionally, many home sellers / and their realtors won’t accept offers on a home without a copy of your preapproval letter. The VA loan pre-approval is a key step in the process, be sure you get this in advance. To get started on your Florida VA loan pre-approval, submit the information request form on the right side of this page or call us 7 days a week at ph: 800-743-7556
Purchase Contract, Finding The Right Home.
Once you’ve got a preapproval letter, it’s time to start the house hunt. Finding a real estate agent who truly understands the VA loan program can make a tremendous difference for military borrowers. VA loans, just like USDA loans, are specialized loans that require specialized knowledge. If you need a great realtor in your Florida city, please reach out to us, we would be happy to make the connection for you!
Once you find that perfect home, you will work closely with your realtor to write up an offer. In addition to no down payment and no mortgage insurance, VA loans also limit what borrowers can pay in closing costs. It’s common for VA borrowers to ask a seller to pay most, if not all, of their closing costs as part of the negotiation process. VA will permit the home seller(s) to pay buyers closing costs. The end result of negotiations should be a purchase contract that makes sense for both parties.
VA Appraisal & Lender Underwriting
As soon as you’re under contract to purchase a home, your lender will order the VA appraisal on the property. The appraisal has two main components, determining the fair market value for the home and making sure it meets the VA’s property requirements.
VA appraisals are typically completed and back to the lender in about a week. At the same time the mortgage company will be working to gather all documents and paperwork before getting your loan file is submitted to the underwriter.
The underwriter will review the loan file and alert the loan officer if there are any missing items or additional documentation needed. It’s important for borrowers to fulfill these requests as quickly as possible as you will likely have a tight 30-day closing date.
VA Closing Day
The actually VA closing process will bring together the buyers and sellers and realtors with the title agent. Buyers want to allow a few hours to sign and review all the paperwork. Once this complete, you receive the keys to your perfect home!
VA Mortgage Hub is Florida’s primary VA mortgage leader serving you 7 days a week. Questions? Please call us at ph: 800-743-7556 or just submit the quick Info Request Form on this page.