How to Get Pre Approved for a VA Loan: A Step-by-Step Guide

Getting pre-approved for a VA home loan is an important first step for servicemembers and veterans looking to buy a home. With pre-approval you’ll have a better sense of your price range and can shop for homes with confidence.

The VA loan pre-approval process involves gathering documents completing a loan application and undergoing underwriting. Here’s a step-by-step walkthrough to help you get pre-approved for your VA mortgage

Step 1: Check Your VA Loan Eligibility

Before starting the pre-approval process, confirm you meet the requirements for a VA home loan:

• Served at least 90 days of active duty during wartime or 181+ days during peacetime
• Received an honorable discharge
• Have sufficient income and credit scores to qualify

Spouses of deceased veterans may also be eligible. If you qualify, request a Certificate of Eligibility (COE) from the VA to verify entitlement

Step 2: Get Your Financial Documents in Order

Lenders will want to review your financial credentials, assets, income sources, and debts. Gather these key documents:

• Last 2 years of W-2s and tax returns
• Recent pay stubs covering 1 month of income
• Last 2 months of bank statements
• Documentation on any supplementary income like pensions or Social Security
• Statements showing balances on all debts like credit cards and student loans
• DD-214 discharge paperwork or Statement of Service letter
• Certificate of Eligibility from the VA

Having all your paperwork ready speeds up pre-approval.

Step 3: Check Your Credit Report and Scores

Before applying, check your credit reports and FICO scores. Many lenders want minimum scores of 620-640 for VA loans.

Make sure your reports don’t contain errors negatively impacting your scores. You can get free reports from www.annualcreditreport.com.

Time is limited to correct significant issues but paying down balances and resolving errors can give your credit a boost.

Step 4: Calculate Your Housing Budget

Figure out your ideal monthly mortgage payment amount based on your current income, debts, and expenses.

Factor in property taxes, insurance, HOA fees, maintenance, utilities, and other ownership costs on top of the loan payment. Leaving plenty of breathing room in your budget makes ownership manageable.

Step 5: Contact Multiple Lenders

Shopping around with several lenders is wise to compare rates and fees. Get rate quotes from online lenders, local banks/credit unions, mortgage brokers, etc.

Narrow down your short list to 2-3 favorite options. Ask about turnaround times, fees, and if they handle the entire VA loan process in-house.

Step 6: Complete a Loan Application

Once you pick a top lender or two, fill out their loan application either on paper, online, over the phone or in person.

You’ll provide:

• Your identity and household information
• Employment history
• Assets and account balances
• Monthly income/expense details
• Property and mortgage preferences

Double check all entries you make for accuracy.

Step 7: Submit Required Documentation

After the application, quickly submit all the financial documents from Step 2 to your lender.

Proactively getting paperwork to your loan officer shows you’re an organized, qualified borrower.

Step 8: Get an Initial Interview and Soft Credit Pull

A loan officer will conduct an initial interview to discuss your goals, needs, and scenario. They use this to make an initial assessment.

They also do a soft pull of your credit, which doesn’t affect your scores, to make sure you meet the lender’s guidelines.

Step 9: Get Your VA Certificate of Eligibility

If you don’t already have your VA COE, you’ll need to request it from the VA to confirm your eligibility.

You can submit your DD-214, Statement of Service, or other records to get approved for the certificate. It arrives within days.

Step 10: Allow Time for Verifications and Underwriting

After collecting everything, your lender verifies your employment, income sources, assets, and debts. The underwriter confirms you can responsibly repay the loan.

Don’t change jobs or open new credit cards during this time which can complicate approval. Allow a few weeks for underwriting.

Step 11: Get Your Pre-Approval Letter

Once fully approved, your lender issues a pre-approval letter stating the maximum loan amount and terms you qualify for.

Rates are still subject to change daily but you’ll have a solid basis for comparison shopping and submitting offers with confidence.

Step 12: Start Your Home Search

With pre-approval secured, you can start actively looking for homes in your budget and submitting purchase offers when you find the perfect one.

Your agent can advise if offers need to be contingent on securing financing. But with pre-approval, it shows sellers you’re qualified.

13: Act Fast If Rates Rise

If rates trend higher while you’re searching, ask your lender about locking your rate so it doesn’t float up further before closing.

Lock periods are typically 30-90 days. Protect your rate once an offer is accepted.

Tips for a Smooth Pre-Approval Process

Here are some additional pointers to help your VA loan pre-approval go smoothly:

• Review your credit reports for errors to correct before applying
• Pay down credit card balances to lower your debt-to-income ratio
• Limit new credit inquiries by only applying with a few lenders
• Talk to lenders about your scenario if your credit or income is borderline
• Ask for pre-underwriting if you had past credit challenges
• Explain any red flags early like collections, discharge status, etc
• Discuss inconsistencies in income type and sources
• Consider rate locks to protect against rises in rates
• Get a backup pre-approval letter before starting your search

With an organized approach, getting pre-approved for a VA home loan is very manageable. In a few weeks, you can have the financing lined up to confidently start finding your dream home.

Frequently Asked Questions About VA Pre-Approval

Here are answers to some common questions about getting pre-approved for a VA mortgage:

How long does VA loan pre-approval take?

Pre-approval typically takes 2-3 weeks but can be faster with an organized borrower who promptly submits required documents.

Does pre-approval on a VA loan guarantee financing?

No, it doesn’t guarantee final approval but shows you qualify based on underwriting of your credentials. Final approval happens once a property is identified.

How long are VA pre-approvals good for?

Most VA pre-approvals are valid for 60-90 days. Your loan officer can let you know the exact timeframe.

Do you need pre-approval for a VA loan?

Pre-approval isn’t required but is highly recommended so you know your price range and can make competitive offers.

What credit score is needed for VA pre-approval?

VA doesn’t set a minimum but lenders often want at least 620-640. The higher your scores, the better your loan terms will be.

Can I get pre-approved with a VA IRRRL refinance?

Yes, lenders will want to pre-approve you for an IRRRL refinance to make sure you qualify before moving forward with the streamline process.

Does pre-approval affect my credit?

Lenders will do a soft pull initially that doesn’t impact your scores. Once you formally apply, they will do a hard inquiry that dings your credit a few points temporarily.

Get Your VA Loan Pre-Approval Today

As you can see, getting pre-approved for a VA loan involves some legwork upfront with gathering documents and completing your application. But the benefits of pre-approval make it worthwhile to approach the process systematically.