How can you get a VA loan?

1 Check your eligibility

The first step to getting a VA loan is to check if you meet the eligibility criteria set by the VA. You need to have a valid service record, a minimum credit score, and a sufficient income to repay the loan. The exact requirements may vary depending on the type of service, the length of service, the discharge status, and the loan purpose. You can check the VA website or contact a VA regional loan center to find out if you are eligible.

2 Obtain a COE

The next step is to obtain a certificate of eligibility (COE), which is a document that proves to the lender that you are eligible for a VA loan. You can apply for a COE online, by mail, or through your lender. You may need to provide some evidence of your service, such as your discharge papers, your statement of service, or your award letter. The COE will show the amount of entitlement you have, which is the maximum amount the VA will guarantee for your loan.

3 Find a VA-approved lender

The third step is to find a lender that is approved by the VA to offer VA loans. Not all lenders are VA-approved, and not all VA-approved lenders offer the same terms and conditions. You should shop around and compare different lenders to find the best deal for your situation. You should also check the lender's reputation, customer service, and fees. You can use the VA website, referrals, or online reviews to find a VA-approved lender.

4 Get pre-approved

The fourth step is to get pre-approved for a VA loan. This means that the lender will review your credit, income, assets, and debt to determine how much you can borrow and at what interest rate. Getting pre-approved will help you set a realistic budget, narrow down your home search, and show sellers that you are a serious buyer. To get pre-approved, you will need to provide some documents, such as your COE, your pay stubs, your tax returns, and your bank statements.

5 Find a home and make an offer

The fifth step is to find a home that meets your needs and preferences and make an offer to the seller. You should work with a real estate agent who is familiar with the VA loan process and can help you find a suitable property, negotiate the price and terms, and handle the paperwork. You should also consider the VA appraisal, which is an inspection that ensures that the home meets the VA's minimum property requirements (MPRs) and determines its fair market value. The VA appraisal may affect the amount of your loan and the closing costs.

6 Close the loan

The final step is to close the loan and finalize the purchase. This is when you sign the loan documents, pay the closing costs, and get the keys to your new home. The closing costs may include the VA funding fee, which is a one-time fee that helps the VA cover the cost of the loan program. The amount of the fee depends on the type of loan, the amount of down payment, and your service category. You may be exempt from the fee if you have a service-connected disability or receive VA disability compensation.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?