The process that takes place after you apply for a VA loan with your VA home loan lender, whether it is a VA home loan purchase or VA loan refinance, is similar to that on other types of home loans, with just a few small exceptions.
VA Loan Pre-Approval
First, you will speak with a VA loan specialist who can familiarize you with VA loans and explain all of your options before you decide to apply for a VA loan. In order to accurately determine your VA loan eligibility, as well as how much you can receive, you will need to provide your date of birth, address, social security number, income and employment information.
VA Loan Application
Once you and your VA loan specialist have identified the terms that best suit your needs, a disclosure package will be sent to your home. This package will have the preliminary VA loan paperwork, including a breakdown of loan terms and fees and disclosures that explain different state and federal mortgage laws. Your signature on these documents is necessary in order to apply for your VA loan, but this step does not obligate you to do anything or cause you to incur any costs.
When you send back the disclosure package, you also need to send copies of your identification, W2s, pay stubs, discharge papers or a statement of service, proof of disability (if applicable), and other documentation necessary to verify the information on your VA loan application. For a purchase, you will also need to supply a copy of the purchase contract at the time you apply for a VA loan.
If you are ready to proceed with your VA loan application, but you do not have all of your documentation, send what you do have to your VA loan specialist so that he or she can start preparing your VA loan application for processing.
Around the time you receive your VA loan disclosure packet, an appraisal will be done on your home. A VA-approved appraiser, chosen by the VA, will examine your home’s features and take pictures to include with the appraisal report. After the inspection, your home will be compared to other homes that have sold in your area and are similar in size, layout, and features to determine its market value. The appraiser must determine that your home is free of safety hazards and that it is structurally sound.
Depending on your location, you may also be required to have a bacteriological water test, energy audit, and/or termite inspection. If the appraiser finds any deficiencies on the property, they will have to be fixed and re-examined before your VA loan is closed.
VA Loan Underwriting
After the appraisal is finished and all preliminary VA loan paperwork is signed, the documents will be submitted to the VA home loan lender’s underwriter for review. The underwriter will review all loan documentation to ensure that it is accurate and complete
After the review is complete, the underwriter will give your VA loan specialist a conditional approval. Once all of the conditions are met, the underwriter will issue an updated conditional approval or final approval on your VA loan.
VA Loan Closing
After the final approval is issued, you will be able to close on your VA loan. The closing coordinator will call you to set up a closing date and time. You may choose any location you prefer for your closing, including your home.
A notary or attorney will be present at the closing to witness the signing of the VA loan documents. After closing on your VA loan, you will have a three-day right of rescission period, during which you can cancel your VA loan for any reason.
Please note: There is no rescission period on a purchase loan.
VA Loan Funding
After the three day right of rescission period, your VA loan will fund. The funds that are due to your previous mortgage company will be wired to them and checks will be disbursed to third party service providers who were involved in the closing. Any money that you are to receive (debt consolidation or cash) will be sent to you directly or deposited into your bank account, depending on which option you chose at closing.
There is no rescission period with a purchase loan, so it will fund on the same day as the closing. When your VA loan funds, checks or wire transfers will be disbursed all parties receiving funds.
You will need to provide certain documentation to have your VA home loan processed. The earlier you provide the required information, the faster your VA loan application can be processed. You will need to provide:
- DD-214 or Certificate of Eligibility
- Consecutive pay stubs from at least the last 30 days
- Tax returns or W2s from the past 2 years
- Bank statements from the last 60 days
- Copy of your purchase contract
- Copy of your social security card
- Homeowner's Insurance policy
Fill out your information or call (800)405-6682 to begin the VA loan process!