How To Apply For A VA Home Loan
The VA home loan program is an excellent way for service members, veterans, and their families to own a home. It's also an excellent program for eligible individuals with "bad" credit or difficulties documenting their income. You may be eligible for a VA home loan if you're a service member, veteran, or surviving spouse. If you're a service member or veteran, you can use your VA home loan benefit to purchase a home with no money down and low closing costs. You can also refinance a conventional mortgage into a VA loan without paying any fees at closing. Keep reading to learn how to apply for a VA home loan today.
Apply For A VA Loan Step-By-Step
#1 Apply For Your Certificate Of Eligibility
Once you’ve decided to pursue a VA home loan and know how much you can borrow, it’s time to apply for your certificate of eligibility (COE). You can apply for your COE:
- Online by visiting the official website and filling out an application form
- By mail with a paper application form
#2 The Lender Will Review Your Certificate Of Eligibility And Application Information
Once you've determined which lender you want to work with, the lender will review your application and certification of eligibility. They'll then ask you to sign a loan agreement, also known as a promissory note. The lender will send this signed loan agreement with all its information to the VA, who, in turn, decides whether or not to approve your loan.
The promissory note is a legally binding contract that outlines all of the terms and conditions of your mortgage loan. It includes information like:
- How much you borrow
- How much interest will be charged on your loan over time
- Other fees associated with the transaction (e.g., origination fee)
After this is done, the lender will call or email you with an approval decision and any additional information they need from you before beginning closing procedures on your home purchase.
The lender will also ask you to sign an agreement between yourself and them that explains what happens if there are any disputes about payments or late fees during the process (this is called a mortgage note). In addition to this document, you may also have to sign another document called a deed of trust for them to take ownership of your property when you buy it from them at closing. Finally, they will want proof that they own this piece of land—they do this by requiring signatures from both parties on security agreements or purchase agreements/contracts of sale/leases/leases-to-own agreements.
Your Home Loan Guarantee Benefit Can Be Used Over And Over Again
You can use your VA home loan guarantee benefit to purchase a home, and once you have used it once, you may be able to use the benefit again. If you sell your current home and buy another one with the money, you can still get a VA mortgage.
If the market value of your property has risen since purchasing it, consider refinancing to take advantage of lower interest rates and pay off some of the principal on your mortgage early. This will save money in interest payments over time! You might even be able to purchase a larger property by trading in for that new dream house instead—all thanks to those low-interest rates!
You can also consider buying investment properties such as duplexes or condos that provide passive rental income after paying off existing mortgages.
The VA home loan program is one way the government gives back to our servicemen and women. The U.S. Department of Veterans Affairs guarantees VA loans, and service members (current or former), veterans, and eligible surviving spouses are all eligible for these government-backed mortgages (as long as they meet the requirements). These loans can be used to purchase a home, build a new one, or refinance an existing mortgage.
If you are a service member, veteran, or surviving spouse and are considering applying for a VA home loan, we encourage you to do so. The process is straightforward, and the benefits are worth it!
MHS Lending is an approved VA lender specializing in VA Home Loans. Get started on your VA loan journey here.