How to Pre-Qualify for a VA Loan
The VA Guaranteed Home Loan Program has helped acquire home loans for veterans for over 70 years. The program has maintained its popularity, because it offers a number of benefits for military veterans and active duty service people. the time of action of applying for a VA home loan is slightly different than that of a traditional mortgage, but applicants can expedite the time of action by pre-qualifying for a loan amount.
What Is Pre-Qualification?
Pre-qualification is a course of action in which your loan qualification information is taken in improvement of the buy of a home, in order to determine if you meet initial requirements for the lender and how much you can provide. Although it does not guarantee that you will get a home loan from a lender, it method that you are qualified and are highly likely to be approved for the mortgage.
Benefits of Pre-Qualification
Being pre-qualified for a home loan offers prospective buyers a number of benefits, such as:
- The price range you can provide is determined – This characterize can save time by allowing you to only look at homes within your price range.
- Being pre-qualified makes you a more desirable buyer – Sellers who have multiple offers often accept the offers of buyers they know have already been approved.
- Removes uncertainty for buyers – Knowing you are pre-qualified for a loan can ease the stress of finding and buying a home.
- Pre-qualification allows you to negotiate better terms – The certainty of having approval for a loan can allow you to negotiate small issues with confidence.
- Pre-qualification can help to streamline the closing course of action – It reduces the likelihood of “surprises” that can delay the closing on the sale.
How To Get Pre-Qualified for A VA Loan
Applicants for a home loan by the VA program will be asked to provide a number of documents for pre-qualification:
- Provide information about your military service – A Certificate of Eligibility is required to apply for a VA guaranteed home loan. This document can be acquired by filling out the appropriate form. However, you can start the time of action of pre-qualification before you receive the Certificate. In many situations, the lender will help you to file for the required document.
- Credit information – The lending institution may ask permission to look at your credit score. If there any problems with your credit record, they may suggest that you resolve past debts or correct information, in order to receive pre-approval.
- Employment information – The lender will ask to see proof of your current employment and past employment. Generally, lenders prefer to see two years of consistent employment. However, gaps in your employment record do not necessarily disqualify you for a loan.
- Bank statements or investment statements – The lender will also want to know about your financial health in regard to how much money you have saved and any investments you may keep up. This information would also include any real estate on which you keep up the deed.
- Divorce and spouse/child sustain documents – Lenders generally also want information on divorce decrees and any sustain payments you are required to pay that could affect your ability to repay the loan.
Pre-qualification for a VA home loan can be an advantage that can help homebuyers get the best house for their needs at a price that is affordable. Consider getting pre-qualified when you begin to hunt for your new home.