Do I Have To Qualify For A VA Loan?

Qualifying for a loan and being eligible for the VA Loan are two different things. If you want to use your VA Loan entitlement, you will need to provide and get documentation. But the process for each is different even though they occur at the same time. First, we’ll look at what it takes to qualify for a loan. Then, we’ll examine how the VA Loan fits into that process.

How Do I Qualify for a Home Loan?

When purchasing a home, you will apply for and be approved for a mortgage by your individual lender. They will look at your current income versus expenses, any other debt payments, your past credit history, and the amount that you will be expected to pay when you purchase the home.

It is typically a good idea to get preapproved by your lender for a home loan amount before you start shopping for a house. Not only does this help you understand what you can potentially afford, it also shows sellers that you are already one step into the process and ready to move forward.

How Do I Use the VA Loan?

During the mortgage approval process, you will need to let your lender know that you want to use your VA Loan entitlement. This often comes up early in the conversation because the type of financing that you plan to use (VA, USDA, FHA, or conventional) can have a big impact on your monthly payment, the process to purchase the home, and your approval.

You will need to have a Certificate of Eligibility (COE) provided by the Department of Veterans Affairs that shows that you are eligible to use the VA Loan. This is based on your time in service as well as any other times you may have used the VA Loan in the past. You can order a COE directly from the VA using their online eBenefits system or a paper form. Your lender may also be able to do so on your behalf.