VA Loan! What does that mean?

The VA loan is a government backed loan, which means that VA will reimburse the lender in the
event of loss due to foreclosure; this guarantee takes the place of the down payment. The VA
home loan was introduced by the G.I. Bill, and was created with the intent to help Veterans,
Servicemembers, and their families have the freedom of buying a home during a time of
temporary financial hardship. With this background knowledge, you may now be wondering
“how do I get started”?

The beginning of the process for using a VA home loan would be to verify your eligibility. Your
eligibility is decided by the VA based on certain criteria such as: your length of service, duty
status, and character of service. This verification can easily be done yourself by reading chapter
7 of the M26-1 Guaranteed Loan Processing Manual. However, if you want some help, call a
local lender or broker and they would be happy to walk you through the verification process as
well!

Once your eligibility status has been established, the next step would be to apply for your VA
home loan Certificate of Eligibility (COE). This step is crucial to the process as it verifies to your
lender that you qualify for the loan. Since the VA home loan can be used multiple times, looking
at a current COE will help you determine your remaining entitlement or if it was restored.
Next, look at your current financial standing. You want to make sure to understand where your
credit score is at, what your monthly budget is and then perform a self-evaluation to determine if
you are ready to buy a home. Though buying a home is a great step, it may not be the best
decision at the current time. It is imperative to make wise financial decisions so that you are
approved by your future lender as well as to ensure you have peace of mind and are confident
in your decision to move forward.

The last step in this process would be choosing a lender. If you meet the VA eligibility
requirements, this does not automatically qualify you with a lender. Most lenders will have set
requirements that need to be met before you are approved. Not all lenders will have the same
standards in place, so make sure to find someone who works best with you and where you are
at. Having a lender that respects your wants and needs as well as who meets you where you
are in your financial journey will make for a smooth and enjoyable experience on both sides!
Now it is time for the best part: Shopping!