We have been Colorado VA Loan specialists for over 12 years! In this article, learn how to qualify for your va loan.
#1: Obtain your Certificate of eligibility.
The first step to obtaining a VA loan 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: 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 the COE through the VA either by mail or online. You will need a copy of your DD214 if you are an honorably discharged Vet.
#2: Seek pre-approval through a Colorado VA Loan specialist.
You will now apply for your 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.
Your lender will also request 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. Be prepared with these items for your initial meeting.
#3: Undergo credit check Checking credit is an essential part of your application. Although Colorado VA Loan guidelines are lenient, you must have at least OK credit in order to qualify for a VA loan. You cannot have any derogatory federal debt such as taxes or student loans.
The minimum credit score is 620. If you have had a bankruptcy in the past, you must wait for 2 years after the discharge date before applying. Foreclosure guidelines are the same; you much wait for 2 years after the sheriff sale date (date the bank sold the home to a new owner).
#4: Under contract/file submitted to underwriting.
Once it is determined that you are 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 Colorado VA loan approval. If the VA loan officer did their job well, your loan will be approved in underwriting.
#5: Close on your Colorado VA loan.
The final step is to close on your VA loan! At this stage you will receive a 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. You should be prepared in advance for this by your lender, but nonetheless, don't confuse no down payment with meaning nothing is 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 have been Colorado VA Loan specialists for over 12 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!
Denver Veterans Affairs Office: http://www.benefits.va.gov/denver/
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