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Top 10 Tips for First-Time VA Home Loan Applicants

Purchase| VA Loans| Realtor| VMA
May 28, 2024•5 min read

Are you a first-time homebuyer who wants a VA loan? Congratulations! You’re on the right track to securing a home with one of the best mortgage options available to veterans and active-duty service members. VA loans offer numerous benefits, including no down payment, no private mortgage insurance, and competitive interest rates. However, navigating the process for the first time can be overwhelming. Here are 10 essential tips to help you successfully apply for a VA home loan.

"The good news is that veterans who apply for VA loans, even for the first time, have access to invaluable resources and support to guide them through the process. It's a testament to our nation's commitment to those who have served and sacrificed for our country." - Tom Hanks, American actor and filmmaker

1. Understand Your Eligibility

Before diving into the application process, make sure you understand the eligibility requirements for a VA loan. Generally, VA loans are available to:

  • Veterans who have served a minimum period of active duty

  • Active-duty service members

  • Certain National Guard and Reserve members

  • Some surviving spouses of deceased veterans

To confirm your eligibility, you’ll need to obtain a Certificate of Eligibility (COE) from the VA.

2. Obtain Your Certificate of Eligibility (COE)

The COE is a crucial document that verifies your eligibility for a VA loan. You can obtain your COE through the VA’s eBenefits portal, by mail, or with the help of your lender. Having your COE ready will streamline the loan application process and demonstrate your eligibility to potential lenders.

3. Check Your Credit Score

While the VA does not set a minimum credit score requirement, individual lenders do. Typically, a credit score of 580 or higher is preferred. Before applying for a VA loan, check your credit report and score. If your score is lower than desired, take steps to improve it by paying down debts and making on-time payments. Please note that the VA does NOT have a minimum credit score. Many lenders will set a minimum credit score requirement based on their risk tolerance. Our team recently closed on a mortgage for an active duty service member and their family with a 507 credit score. This isn't the norm, but there were some serious extenuating circumstances.

4. Gather the Necessary Documents

Having all the necessary documents ready can speed up the application process. Commonly required documents include:

  • Proof of military service (DD-214 or Statement of Service)

  • Proof of income (pay stubs, W-2s, tax returns)

  • Bank statements

  • Employment verification

  • COE

5. Understand the VA Loan Limits

While the VA no longer sets loan limits for borrowers with full entitlement, it’s essential to understand how much you can afford and the loan limits set by your lender. Knowing your budget and loan limits will help you narrow down your home search.

6. Choose a VA-Experienced Lender

Working with a lender who has experience with VA loans is crucial. They understand the specific requirements and can guide you through the process efficiently. Look for lenders who are VA-approved and have a good track record of helping veterans secure home loans. I highly recommend working with a Certified Veteran Mortgage Advisor in your area.

7. Get Pre-Approved

Before you start house hunting, get pre-approved for a VA loan. Pre-approval shows sellers that you’re a serious buyer with the financial backing to make an offer. It also gives you a clear idea of how much you can borrow, so you can focus on homes within your budget.

8. Know the VA’s Minimum Property Requirements (MPRs)

The VA has established MPRs to ensure that homes purchased with VA loans are safe, structurally sound, and sanitary. Be aware of these requirements as you search for a home. Homes that do not meet the MPRs may need repairs before the loan can be approved. If you have doubts, talk to your Realtor©, who specializes in VA home loans, to get their opinion.

9. Budget for Closing Costs and Fees

While VA loans often have lower closing costs compared to conventional loans, there are still fees to consider, such as the VA funding fee. Some closing costs can be negotiated, and the VA limits the fees lenders can charge. Make sure to budget for these expenses and discuss options with your lender.

10. Prepare for the VA Appraisal

The VA appraisal ensures the home’s value and condition meet the VA’s standards. It’s different from a standard home inspection and is required for loan approval. Be prepared for this step and understand that any required repairs must be completed before closing.

Conclusion

Applying for a VA home loan as a first-time buyer can be a smooth and rewarding experience if you’re well-prepared and informed. By understanding your eligibility, obtaining your COE, checking your credit score, and working with an experienced Certified Veteran Mortgage Advisor, you can navigate the process with confidence. Follow these tips to make the most of your VA home loan benefits and achieve your dream of homeownership.

FAQs (Frequently Asked Questions)

What is the VA funding fee?

The VA funding fee is a one-time fee that helps to fund the VA loan program. It can be financed into the loan amount, and veterans with service-connected disabilities are exempt from paying it.

Can I use a VA loan more than once?

Yes, eligible veterans and service members can use their VA loan benefits multiple times, provided they meet the requirements and have remaining entitlement.

How long does the VA loan process take?

The VA loan process typically takes 30 to 45 days from application to closing, but this can vary depending on factors like the lender and the borrower’s preparedness. The VA Mortgage Vet team averages 18 days. Much faster than the national average.

What are the benefits of working with a VA-experienced lender?

A VA-experienced lender understands the specific requirements and procedures of VA loans, which can streamline the process and help you avoid potential pitfalls. Certified Veteran Mortgage Advisors are known for anticipating potential roadblocks and steering you around them before they become an issue.

Are there property restrictions for VA loans?

Yes, the property must meet the VA’s Minimum Property Requirements (MPRs) to ensure it is safe, sound, and sanitary. Certain types of properties, such as co-ops and commercial properties, are not eligible for VA loans.

For further advice on how to make sure your VA home loan process goes as fast and smoothly as possible, please read our article titled: Unlocking the Secret: VA Home Loan Benefits You Didn’t Know About

VA home loan tipsFirst-time VA loan applicantsVA loan eligibilityVA Certificate of Eligibility (COE)VA loan credit scoreVA loan pre-approval
Are you looking for the best mortgage experience in the market? Look no further than Travis! With nearly three decades of experience in the mortgage industry, Travis has helped thousands of families achieve their dreams of homeownership. As a former active-duty Marine, he brings the same tenacity to finding you the best loan for your circumstances. Travis understands that buying a home or refinancing your current one can be overwhelming, so his goal is to make the mortgage process as easy as possible for you. He takes the time to understand your unique situation and preferences, leaving no stone unturned when finding the best mortgage product. Travis is more than just a mortgage lender - he wants to be your lifetime friend. He is passionate about helping you create family memories in the home of your dreams. And with his dedication to coordinating with your family, financial planner, tax professional, and others, you can rest assured that you'll be able to enjoy the life you've worked hard to create. Whether you're a first-time homebuyer or looking to refinance your current home, Travis can help you achieve your goals. Don't wait any longer to make your dreams a reality - call Travis today and experience the #1 key to a successful mortgage journey: being informed.

Travis Egan

Are you looking for the best mortgage experience in the market? Look no further than Travis! With nearly three decades of experience in the mortgage industry, Travis has helped thousands of families achieve their dreams of homeownership. As a former active-duty Marine, he brings the same tenacity to finding you the best loan for your circumstances. Travis understands that buying a home or refinancing your current one can be overwhelming, so his goal is to make the mortgage process as easy as possible for you. He takes the time to understand your unique situation and preferences, leaving no stone unturned when finding the best mortgage product. Travis is more than just a mortgage lender - he wants to be your lifetime friend. He is passionate about helping you create family memories in the home of your dreams. And with his dedication to coordinating with your family, financial planner, tax professional, and others, you can rest assured that you'll be able to enjoy the life you've worked hard to create. Whether you're a first-time homebuyer or looking to refinance your current home, Travis can help you achieve your goals. Don't wait any longer to make your dreams a reality - call Travis today and experience the #1 key to a successful mortgage journey: being informed.

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