For over 22 years, we have been Amarillo TX VA Loans specialists! We will teach you how to qualify for your VA home loan benefits in this article.
1: Verify eligibility through your Certificate of eligibility (COE).
Obtaining a VA loan is easy. The first step is to verify your eligibility. You must order your Certificate of Eligibility (COE) through the VA which will also confirm the amount of your eligibility. If you were honorably discharged, or are currently active duty or reserves, then you are eligible.
Ordering your COE: The easiest way is that your lender can help you get your COE fast, usually the same day you request it. You can also order your certificate of eligibility through the VA either by mail or online. If you are an honorably discharged Vet, you will need a copy of your DD214.
Step 2: Apply for pre-approval with a Amarillo TX VA Loans specialist.
Next, you must apply for the VA loan. The application will take 20-30 minutes with your VA lender either over the phone or in person. The application will have such information as Income information, employment history, income information, address history, assets, and questions such as whether or not you have had a bankruptcy or foreclosure.
You will also need to provide some supporting documentation at this point to verify the information on the application. Documentation includes your most recent 30 days paystubs, past 2 years W2s and tax returns, and your most recent 2 months bank statements. It would be best to be prepared with these items for your initial meeting.
#3: Credit is checked
Checking credit is an essential part of your application. Although Amarillo TX VA Loans are lenient, you must have at least OK credit in order to qualify for a VA loan. Minimum credit score is 620, and derogatory federal debt such as student loans or taxes is unacceptable. A bankruptcy in the past doesn't necessarily disqualify you, but you must wait for 2 years after the discharge date before applying. The same goes for a foreclosure, you must wait for 2 years after the sheriff sale date (date the bank sold the home to a new owner).
#4: Going under contract/your file submitted to underwriting.
The next step is that your file will be submitted to underwriting for the official approval (a person will underwriter your file). The pre-approval step is where your loan officer will review your documentation. The underwriting phase is the official VA loan approval. If your VA loan officer did their job well, you should not have a problem in underwriting.
#5: Closing your VA loan.
The final step is to close on your VA loan! At this point you will receive a closing settlement statement which will break down all of the charges and also all of the credits, and give you a summary of the bottom line due at closing. There is no down payment requirement for VA loans. However, don't forget there are VA closing costs involved in every transaction. So bottom line, don't confuse no down payment with meaning nothing is due at closing! You should be prepared in advance for this by your lender, and should know going in to your transaction how much will be due at closing. It is possible to finance the closing costs if you can't come up with the funds, and your lender can help you with these options.
We specialize in Amarillo TX VA Loans and would be happy to answer any questions you have. We are here to help you.
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