California VA Loan Limits

How To Get Approved For A VA Loan

Getting qualified for a VA loan is a simple, step-by-step process. Before getting qualified, you should choose a top-rated mortgage broker and a loan officer with at least five years of experience. Also, if you are not eligible for “full entitlement,” make sure you adhere to the VA loan limit for your county.

Obtain Your Quote

The first step to getting qualified for a VA loan is to obtain a quote and review the terms. Two key areas you want to pay attention to are the interest rate and the total amount of fees being charged (for everything). Many lenders will only quote some of the fees being charged, like lender fees, and they leave out third-party fees and, at times, discount points.

The best way to approach this is to ask, “What are the total fees for everything?” Asking what the “total fees” are puts you in a better position to understand what is being quoted.

You’ll also want to verify your loan amount meets your county’s VA loan limit (if you don’t have full entitlement).

Lastly, you’ll want to ask the loan officer if they have quoted a rate based on a thirty-day lock period. Even if you are planning on not locking your interest rate right away, you still want the quote to be based on a specific lock period.

The reason is this: a quote based on a rate that is not lockable isn’t an accurate quote to consider, since you have to lock it at some point during the process.

Complete The Loan Application

If you like the quote and the loan officer has clearly laid out all the fees, you’ll want to then complete the loan application. With most companies, you can complete the loan application on the phone or online, and it usually takes about ten to fifteen minutes to complete. To complete the loan application, you’ll need the following basic information;

• If it’s a purchase, the property address of the home you’re buying
• Personal information such as name, address, date of birth, social security number, etc.
• Employment information
• Liquid asset information (i.e., bank account)

Having this information ready before you complete the loan application will make the process much more efficient.

Turn In Your Documentation

Once your loan application is complete, you’ll need to turn in your documentation. Here is a standard list of documentation you’ll need to send to the loan officer:

• Income documentation
• Liquid asset documentation
• Property documentation
• Purchase contract (if it’s a purchase and you have an agreed-upon contact with the seller)

Discuss with your loan officer what specific items you’ll need to send in and if any additional items might be needed. When sending in your documentation, ensure the documentation is clear and complete (meaning all pages are included).

Underwriter Approval

When your loan officer has received your completed loan application and all your required documentation, they will send your file to the underwriter for a full review. Before doing that, the loan officer should verify that your loan amount meets your county’s VA loan limit amount (if you don’t have full entitlement).

Three Areas The Underwriter Focuses On

Here are the three areas an underwriter will focus on:

• A loan applicant’s credit score and history
• Income earned
• Liquid assets

Your file must meet the requirements for these three areas. If you don’t have full entitlement, the underwriter must also confirm you do not exceed your county’s VA loan limit. If your application and documentation meet the underwriting requirements, your underwriter will then approve your file and issue conditions for closing.

Review the approval and closing conditions with your loan officer so you can move forward with signing loan documents and closing your loan.