The 6 Steps In Arranging A Veteran’s Guaranteed Loan

The Department of Veteran Affairs Loan Guaranty Home Loan Program website offers 6 steps for the Vet to follow in getting a VA loan.

These 6 steps can be found here: Arranging A Veteran’s Guaranteed Loan.

As I read through these six steps I thought to myself: “huh, the Dept of Veterans Affairs could certainly spell these out a bit more…”

So, instead of trying to get them to do it – yes an act of Congress – and Congress has plenty to do already, I’ll do it for them and for you.

My version of the 6 Steps In Arranging A Veteran’s Guaranteed Loan.

First of all, I would have titled it something like: The 6 Steps To Buying A Home Using A VA Loan.

1. Step 1
   • Theirs: Find the property suitable for your needs.
   • Mine: Go to your VA lender, actually 3 VA lenders and apply for a VA loan with them. Going to three lenders gives you a way to compare rates and fees and should keep your loan officer honest. Most real estate and mortgage people call this: getting pre-approved.
2. Step 2
   • Theirs: Go to a lender and apply for the loan
   • Mine: Find a real estate agent and start your home search based on what you qualify for with your VA loan. To search for a home before you know what you qualify for is just a big waste of time. In fact, any real estate agent worth working with shouldn’t even send you any listings to look at until you have spoken to a VA lender.
3. Step 3
   • Theirs: Present your discharge or seperation papers relating to the latest period of service and/or a Certificate of Eligibility.
   • Mine: This step would be covered in my Step 1 above. Instead, complete the negotation process with the seller of the home you want to buy. Make sure you negotiate with them to pay as much of your loan costs as possible. In fact, if you and your real estate agent are really good at negotiation and presenting your offer you should be able to get the seller to pay all of your home purchase costs which would allow you to buy a home with virtually no money coming out of your bank account. VA loans are just about the only mortgage left to allow for 100% financing – lucky Vets.
4. Step 4
   • Theirs: Property is appraised by approved appraiser.
   • Mine: Once your purchase offer is accepted you will in most states enter into what is commonly called the property inspection period. This is the period of time where the home gets appriased. With a VA loan you have to have your home appraised by a specifically VA qualified appraiser in your area that the VA assigns to appraise your home. Also during the inspection period other inspections occur such as pest, radon, water, septic, roof, structural home inspection to name a few.
5. Step 5
   • Theirs: Estimate of property’s reasonable value is determined
   • Mine: If the appraised value matches or is above your sales price then you are good to go on completing your mortgage loan qualification. If the value is less than your sales price you will have to work out some sort of contingency with the seller if you want to continue with buying this home. Make sure you cover contingencies with your real estate agent in my Step 3 above as you present your offer.
6. Step 6
   • Theirs: If application is approved, you get the loan.
   • Mine: If your loan is approved, you go to closing and get the keys to your new home. And congratulations you have just become a home owner using the 6 Steps To Buying A Home Using A VA Loan.

Good luck!