How to Get Pre-Approved for a VA Loan

Getting pre-approved is the best first step to homeownership, in doing so you can start to identify how much home you can afford, determine your monthly budget, and get on your way house hunting. And if you currently serve in the military or are a veteran, you may be considering a VA loan. So, let’s dive into exactly what a pre-approval process could look like for you:

VA loan pre-approved documents needed

In order to receive a pre-approval letter, we will need you to provide certain documentation. This will give us a better look at your financial health, credit score, and debt-to-income ratio.

Here are the documents we’re looking for:

• Your current and previous employment

• Your gross (which is pre-taxed) monthly income

• Your assets like your bank accounts and funds

• If you’ve had any bankruptcies or foreclosures

• Your debts like student loans, car payments, etc.

• Your Certificate of Eligibility (COE)

What does a pre-approval letter mean?

Think of the pre-approval letter as your golden ticket on your journey to homeownership.

But why does it carry so much weight? Well, after the Mortgage Banker combs through your financial history, crossing the t’s and dotting the i’s of how much you can afford, your letter will tell you exactly how much you can borrow for your home.

By having this letter, you know the exact price range to look in when you start home shopping. You can start to push forward on your hunt and present a confident offer once you find that dream home! And if you run into the issue of multiple offers on a property, you’ve actually got serious skin in the game.

What other factors affect my pre-approval letter?

Getting a VA loan is unique in that there are a lot of perks that you’re afforded for your service, like your COE. Your COE is also an important piece to this puzzle because it will dictate a few factors that we’ve named in this blog. And one of the biggest perks to a VA loan, is the possibility to have a zero-down payment.

Credit is also one of the most important factors that will determine the outcome of your pre-approval letter. We pull your credit so that we see what kind of shape your financial history is in. In order to have a better understanding of what other pieces come into play with your credit, click here.

How long is the letter good?

Typically, the pre-approval letter is good for 90 days. A lot can change within 90 days, so worst-case scenario you don’t find that perfect home, we can absolutely revisit.

What’s next?

Ready to start your search and start your pre-approval process?! That's extremely exciting, and you’ll be well equipped to start searching for your dream home. Knowing before you start the hunt just how much you can afford gives you peace of mind. If you have any other questions about the loan process, VA loans, or the pre-approval process reach out to us today!