VA Loan Articles
News, updates, and explanations to keep you informed.
Shopping for a VA Home Loan? Know the Details.
Lots of home buyers tend to window shop for a while before getting serious and settling on a particular property. Some first time home buyers don’t really know what they want or where to look in the beginning, but once house hunting starts in earnest that problem usually disappears. But the struggle of the first time home buyer and VA mortgage borrower often extends to other parts of the process, too—first timers need the help and experience of others to help them through the process of selecting, inspecting, and deciding on a house and applying for the VA loan.
Did you get a pre-approved loan amount before shopping for that dream home? That can be an important first step to smooth the way during a serious house-hunt, and that’s just one bit of advice many wish they had gotten when they first started out. Another important detail to know? Gather your vital information before trying to fill out applications along the way. Chances are you’ll need the same information again and again, so gather it up before you start tackling those forms.
What does a house hunter need in the initial VA loan application process to satisfy the Department of Veterans Affairs and begin working with a lender?
The most obvious items include Social Security numbers, pay statements, and tax returns. The not-so-obvious data needed? VA borrowers must apply for and get a Certificate of Eligibility from the VA and they need to collect the names and addresses of all employers for the last two years.
That’s a simple process for a military member with one enlistment behind them, but what about the first-term enlistee? Is there a co-borrower in the arrangement? Co-borrowers must also provide these details.
Co-borrowers are permitted for VA loan applications, but in many circumstances a co-borrower’s loan amount is not guaranteed by the Department of Veterans Affairs—only the veteran or service member’s portion of the loan is covered unless both borrowers are military members or veterans; the VA covers the amount of the loan in full in these cases.
Do you own other property? Addresses and loan details on other property is also required of borrowers and co-borrowers. Are you applying for a VA loan with a self-employed co-borrower? The co-borrower needs to supply detailed information about the business he or she runs, including income, tax forms and other information that reveals the reliability of income from the business.
This is all important information to have at your disposal before trying to fill out the very first form—don’t start applying for your VA loan eligibility or the loan itself without having all the right details at your disposal whenever you need them.
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