Timeline of Events for a VA Purchase Loan
It’s important to prequalify because it helps you know how much of a home you can afford. This is a step that no borrower should skip. It can help you narrow down your search for a home by eliminating the homes you can’t afford, saving you both time and money.
Strive Lending can help you prequalify. They will ask you questions about your credit history and income and can even run a quick credit check (with your permission). You can also get together the documents that show that you qualify for a VA loan.
Prequalifying doesn’t guarantee approval, but it gives you a good idea of what you can borrow if you are approved. It can also help you identify potential problems with your application and reduce unpleasant surprises.
A preapproval is like prequalification, but it takes the process a step further. Preapproval verifies certain things about your finances. Pay stubs, employment history, tax returns, proof of real estate holdings, and bank and investment statements will be required for this step of the loan process.
Once all your documentation has been verified, you will receive a preapproval letter. It will show that you’ve started the process of applying for a VA loan and will tell how much of a loan you can afford.
At this point, it’s time to begin your search for a home. You should work with a realtor to find a property that’s right for you and within your price range.
Once you find the home that’s right for you, you’re ready to make an offer and work on negotiating a contract with the seller. It is essential that your real estate agent is familiar with VA loans and can help you with the contract so that it works to your advantage.
Once you’re under contract for a home, your loan officer will order an appraisal for the property. The VA assigns an appraiser to complete the job. Homes have to be move-in ready (with any problems fixed) before the loan closes. The VA has strict guidelines about the condition of homes purchased with a VA loan.
At this point, the loan underwriter will verify your financial information and make sure that all the paperwork meets the VA’s guidelines for its loans. Once the loan is approved, you’ll set a closing date to sign the necessary paperwork and move in to your new home.
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