Purchasing a Home Using VA Financing
Purchasing a home is an exciting time, but there are a few “gotchas” that you should safeguard against. Your lender will need up front documentation on your income, employment, assets, and credit in order to get your loan pre-approved. But don’t get too comfortable… it’s not over until the loan has closed. Prior to closing, the Federal government requires a second verification of your income, employment, assets, and credit. There are some easy things you can do to avoid hiccups during the loan process.
While Under Contract
To avoid delays in closing or last-minute problems getting your loan, keep the following tips in mind:
- Avoid taking on new debt. This includes “same as cash” financing terms like those often offered on furniture or appliances.
- Avoid changing jobs. Your income and employment will be reverified before your loan funds.
- Avoid making undocumented deposits or moving money around. All deposits on your bank statements have to be documented.
- Avoid being late on any of your debt, most importantly your mortgage.
We are here to help you succeed at every step of the way. Whether you want to buy in 3 weeks or 3 years, we are available to help you strategize.
VA Loan Process Step by Step:
Step 1: Pre-qualification: This can be done by either filling out our secure form or calling us at (208) 287-1705 for a quick phone conversation. During this process, you will get an estimate of how much you qualify for and what the monthly payment and cash to close requirements will be.
Step 2: Pre-Approval: After prequalification, you will be asked to provide documentation on your income, employment, assets and possibly credit. At this stage, your loan application will be analyzed by the automated underwriting system and once approved we can issue a loan approval letter. Beware that your income, employment, credit, and assets will need to be reverified prior to closing your loan. It’s wise to avoid making any major changes without discussing them with your loan officer first.
Step 3: Begin the Home Search: A realtor will then help you start searching for a home. At your request, we are happy to provide free referrals to top agents who understand the VA home buying process.
Step 4: Make an Offer: Once you find the perfect home, it’s time to start the negotiations by making an offer. You can strengthen your offer by providing a pre-approval letter from a local lender such as Benchmark Mortgage.
Step 5: Loan Processing: Once your offer is accepted you will work with your lender to update your files with more current documentation. You may choose to have a home inspection as well. Your lender will order an appraisal as part of the process and an underwriter will review everything to make sure your application meets the guidelines set forth by VA. Working with a lender such as Benchmark who has authority from VA to underwrite loans will expedite the process. Keeping the loan local has advantages as well due to the relationships and contacts we have with appraisers, title companies, insurance agents and local realtors.
Step 6: Closing: After meeting all of the loan requirements, both buyer and seller will utilize a third party settlement service such as a Title Company to close the transaction. Your loan will fund and keys will change hands.
To discuss the loan approval process so that you can prepare for a successful purchase or refinance, call one of our VA Home Loan Specialists at (208) 287-1705 or click here to contact us online.
