How To Get Pre Approved for a VA Home Loan

When it comes to buying a home, military veterans and active-duty personnel have an unrivaled superpower: the VA home loan.

However, as in the Marvel Universe, with great power comes great responsibility. The best way to exercise both your power and your responsibility is by succeeding in the reapproval process.

In truth, anyone in the home-buying market benefits from being preapproved: Sellers and real estate agents know they’re engaging with serious, capable buyers. (Oftentimes, purchase offers won’t be accepted without a copy of a reapproval letter.) But because of the power and intricacies of a VA-backed mortgage, having a reapproval in hand is especially important for vets and active-duty military.

“As someone who has worked with veterans and active-duty military personnel for over two decades, I can’t stress enough how crucial preapproval is in the VA loan process,” says Shirley Mueller, a Senior Vice President of Mortgage Lending at CrossCountry Mortgage in Austin, Texas.

“For veterans, this is particularly important in competitive housing markets where being preapproved can give you an edge. I’ve seen too many clients miss out on dream homes because they skipped this step and couldn’t act fast enough.”

The reapproval process will establish your purchasing power, give you a reliable idea of your loan terms, and lay out the steps required to achieve a successful closing.

What Is a VA Home Loan?

VA home loans are among the best perks earned by serving in defense of the United States. Backed by the Department of Veterans Affairs, VA loans pack exclusive and enviable mortgage benefits to qualified servicemembers, veterans, and their eligible surviving spouses. Benefits extend, also, to qualifying members of the National Guard and Reserves.

What’s in the VA home loan box? Stuff you can’t get anywhere else: No down payment; no private mortgage insurance (PMI); lower interest rates; superior refinance programs.

Also, with the VA’s muscle behind each of its home mortgages, lenders can feel confident about the enduring health of their loan.

Why Get Preapproved for a VA Home Loan?

As a home-seeking veteran or service member, you’re entering the fray with, as noted above, the most powerful mortgage product in the real estate industry. Your preapproval can maximize that advantage.

With your preapproval in hand, you will have a crystal clear sense of your buying power (as will the seller and the seller’s agent). You’ll also know how your VA-backed mortgage will slip neatly into your budget. And, because you have taken care of many of the particulars up front, the loan process should be a relative breeze.

Review that last sentence. Going through the preapproval exercise will highlight potential issues with your eligibility or credit that must be tidied up before embarking on a home-shopping tour. As with any military maneuver, it’s better to anticipate and resolve trouble spots before engaging the target.

Steps to Get Preapproved for a VA Home Loan

Again, with an eye to weeding out potential surprises, it’s useful to know the steps involved in the preapproval process. Going through them one-by-one should set your mind at ease.

Check Your Eligibility

Tip-top of the list: verifying your eligibility for a VA-backed home loan. Failure to clear this hurdle renders the rest of the affair moot.

Begin by reviewing your qualifications. For veterans, the minimum active-duty service requirement depends upon when you served. The VA has a lengthy list of shifting qualifications covering more than 80 years, dating to World War II. More recently — since August 2, 1990 — the eligibility requirements are straightforward.

Having ascertained your qualifications, apply for a Certificate of Eligibility, or COE. Download a COE request form, available on the official VA.gov website. If you’ve signed up for the eBenefits portal, you’ll receive your COE confirmation in mere minutes. Prefer the mail? USPS will deliver your COE within 4-6 weeks.

Mortgage lenders also can provide guidance toward securing your COE.

Check Your Credit Score

Next up: Know your credit score. Even with the VA having your six, good credit is essential for scoring the best possible home loan terms. Indeed, credit is the essential financial barometer.

“While VA loans are more forgiving with credit scores compared to conventional loans,” Mueller says, “your score still impacts the interest rate and loan terms you qualify for.”

Many VA lenders require a minimum FICO score of 620, which is in the middle of the “fair” range (580-669). The better your score, the more favorable your loan terms are likely to be.

No matter what your level of FICO health, it’s essential you inspect your credit history with the Big Three credit reporting agencies (Experian, TransUnion, Equifax). Request a free report from each and study them for errors. Mistakes, which are not uncommon, can have a detrimental effect on your score. However, the agencies are good about correcting errors when the consumer can properly document what they got wrong.

Check, also, to see whether any of the agency’s credit-boost programs can enhance your score.

While you’re at it, evaluate your existing finances, paying close attention to your outstanding debts. Pay down (or pay off) your balances as well as you can; the better your debt-to-income ratio, the better your chances of getting the best possible preapproval terms.

Gather Necessary Documentation

While waiting for the Big Three to get your credit history properly sorted, you can forge ahead by collecting and organizing the documents required for preapproval. Here’s what you need to gather:

• Proof of service: A DD-214 for veterans; some National Guard and Reserve veterans may have to provide points statements.
• Statement of service for active-duty service personnel. You also need your Leave and Earnings Statement (LES).
• Personal, government-issued identification, typically a driver’s license or passport.
• Social Security card.
• Income verification: copies of recent pay stubs and the last two years of W-2 statements.
• Federal tax returns for the last two years if you have self-employment income, 1099s, or rental income.
• Copies of most recent bank statements.
• Every personal financial document you have, including statements for retirement or investment savings, and/or a brokerage account.
• VA awards letter documenting VA disability percentage, if any, and monthly income amount.
• Copy of your most recent retirement account statement.
• Copy of divorce decree or court documents specifying alimony or child support obligations, or benefits (if you want to have them considered as part of your income).

Having all of these documents at the ready will streamline the preapproval application process, speeding your way toward your home shopping experience.

Choose a VA-Approved Lender

You may love your bank or credit union, but that does not necessarily mean that particular institution is aces at VA home loans. As in all financial transactions, there is no harm in — and may be a great benefit from — shopping around.

Considerations to weigh include:

• Does the lender enjoy esteem in the industry? Check out online review sites (with a grain of salt, always) and the Better Business Bureau.
• Stability: Has the lender been in business long enough to have a worthwhile track record? How long has the lender been making home loans?
• Experience: Has the lender built a substantial business in the realm of VA home loans, or is it a newcomer? If the latter, what assurances does the lender provide that it is well-versed in the nuances of VA-backed mortgages?
• Rates and fees: VA mortgage interest rates and fees vary by lender, so be sure to compare apples to apples.

Submit Your Application

Your lender will help guide you through the steps described above. Once everything is gathered, you will submit all your documentation, along with your preapproval application.

Now it’s up to the lender to evaluate your application to determine whether you qualify for a VA home loan, and, if so, the size of the loan it can approve.

Do not be dismayed if your lender comes back with follow-up questions or requests for additional documentation. Getting your preapproval exactly right will help smooth the road when it comes time for underwriters to review your loan application.

Understanding the Preapproval Letter

Once the review is complete and satisfactory, your preapproval letter will be issued. This is a big step. Congratulations!

The preapproval letter will describe the upper limit of your home-buying power, and establish you have a mortgage lender ready to back your loan.

Typically, preapproval letters are valid for 60-90 days. During this time, you can house hunt with confidence, knowing you can present sellers and their agents a strong, reliable offers on your future home.

Tips for a Successful Preapproval Process

Making the preapproval process go smoothly begins with you. The same qualities your branch of the military value in carrying out your duty — being proactive, organized, and attuned to details — will serve you well in your preapproval exercise.

“One of the most common missteps in the preapproval process is providing incomplete or unorganized documentation,” says Zev Freidus, president of ZFC Real Estate in Boca Raton, Fla. “Having [your] documents ready in advance speeds up the process and ensures no delays due to missing paperwork.

“Veterans who proactively gather and double-check these documents are more likely to move seamlessly through preapproval and into homeownership.”

Got that? Make sure you’ve gathered all the necessary documentation and promptly provided whatever the lender needs. Double-check the information to verify its accuracy.

“A proactive mindset helps,” Mueller says. “Reach out early, prepare your paperwork thoroughly, and choose a lender experienced in VA loans.

“I’ve seen firsthand how this approach leads to faster approvals and smoother transactions. For veterans, getting preapproved isn’t just about securing a loan; it’s about setting yourself up for long-term financial success in homeownership.”

To reiterate Mueller: Be responsive in communications with your lender. Delay is your enemy. The quicker you can satisfy their inquiries, the faster you will get a decision about your preapproval.

Meanwhile, do all you can to maintain a stable, or improving, financial profile. For instance, avoid taking on new debt. Wait to buy that new car or expensive furniture or put a dream cruise on a credit card. Don’t make large deposits without documentation. Resist the urge to change jobs simply for the sake of changing jobs; lenders look for employment stability.

Moving Forward with VA Loan Preapproval

As a veteran, active-duty service member, or the surviving spouse of a veteran, you no doubt have a strong sense of the superpower invested in you (or your late loved one) through your honorable service to the nation’s defense.

Once you’re in the market for a new dwelling, the best way to wield that power is by getting preapproved for a VA home loan. You will know with absolute certainty how much home you’re able to afford; your mortgage lender will be lined up and ready to act; and sellers and their agents will know you are both a ready and serious buyer.

“As a veteran and a real estate broker,” says Levi Rodgers, co-founder of Shavano Park, Texas-based VA Loan Network, “I can say confidently being reapproved is key in the VA home loan process. It’s not just about eligibility — it’s your ticket to knowing what you can afford and standing out to sellers, especially in competitive markets.”

Your VA-approved lender is out there and waiting to help put you in a new place to call home, whether it’s a first house or your forever home. So start the journey in the best way possible, by getting the preapproval process rolling.