We have been specializing in Texas VA Loans for over 20 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. You must order your Certificate of Eligibility (COE) through the 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: Your lender can help you get your COE fast, usually the same day you request it. It can also be ordered 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 Texas VA Loans specialist.
The next step is to apply for the VA loan. The application will take 20-30 minutes with your VA lender either over the phone or in person. Things you will need to know for the application are address history, income information, assets, employment history, and specific questions like whether or not you have had a bankruptcy.
Your lender will also request some supporting documentation at this point to verify the information on the application. 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. It would be best to be prepared with these items for your initial meeting.
3: Undergo credit check
You will undergo a credit check as part of the application. Texas VA Loans are lenient, but you must have at least decent 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. 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 the VA loan officer did their job well, your loan will be approved 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. Although there is no down payment requirement for VA loans, don't forget 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! There are ways to finance the closing costs if you can't come up with the funds, and your lender can help you with these options.
Our specialty is Texas VA Loans, and always, we are standing by to assist you with all that is mentioned above. Just go to http://legacyfinancial.com or call Joy Bates with the Legacy Group of LeaderOne Financial at 817-860-3232 or email Joy: joybates@leader1.com.
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