We have been specializing in El Paso TX VA Loans for over 22 years! We will teach you how to qualify for your VA home loan benefits in this article.
#1: Obtain your Certificate of eligibility.
Obtaining a VA loan is easy. The first step is to verify your eligibility. This is done by ordering your Certificate of Eligibility (COE) through VA which will also confirm the amount of your eligibility. To be eligible, you must be an honorably discharged Vet, or are active duty or reserves currently.
Ordering your COE: To get your COE fast, your lender can help you order it. This is usually the easiest way. It can also be ordered through the VA either by mail or online. You will need a copy of your DD214 if you are an honorably discharged Vet.
#2: Obtain pre-approval with a El Paso TX VA Loans specialist.
Next, you must apply for the VA loan. Either by phone or in person, plan to meet with your VA Lender for 20-30 minutes. The application contains such information as address history, employment history, income information, assets, and specific questions like whether or not you have had a bankruptcy.
In order to verify the information on the application, your lender will also request some supporting documentation at this point. Be prepared to provide your most recent 2 months bank statements, past 2 years W2s and tax returns, and your most recent 30 days paystubs. Be prepared with these items for your initial meeting.
3: Undergo credit check
Part of the application is a credit check. Although El Paso TX VA Loans are lenient, you must have at least OK credit in order to qualify for a VA loan. The minimum credit score is 620, and you cannot have any derogatory federal debt such as student loans or taxes. If you have had a bankruptcy in the past, 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.
Once you are under contract, or in the case of a VA refinance, are determined to be qualified for the loan, the next step is that your file will be submitted to underwriting for the official approval. The pre-approval step is where your loan officer will review your documentation. The underwriting phase is the official VA loan approval. If the VA loan officer did their job well, your loan will be approved in underwriting.
Step 5: Close on 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. Although there is no down payment required for VA loans, it's important not to forget that 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. There are ways to finance the closing costs if you don't have money available for this, and your lender can help you with these options.
We have specialized in El Paso TX VA Loans for over 22 years and would be happy to answer any questions you may have. It doesn't cost a penny to call! We are here to help you!
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