VA Home Loan Pre-approval
Getting pre-approved for a VA home loan isn’t just a smart move for the homebuyer, but it’s also helpful for home sellers. When you get pre-approved for a VA home loan, it shows sellers that you’re a serious homebuying candidate who has his or her ducks in a row.
This is also a good move if you’re using a real estate agent. Your agent will see that you take the homebuying process seriously and are certain you want to buy a home – a big life achievement! When you get pre-approved, you’re also safeguarding yourself from listing agents who won’t accept an offer from homebuyers without pre-approval letters.
So, what does pre-approval mean? Pre-approval is a more in-depth look at your finances and credit, and while it’s similar to pre-qualification, pre-approval is the act of verifying everything you said during those pre-qualification conversations. If you said you make $100,000 a year, your lender will verify that in the pre-approval process.
Prospective homebuyers provide financial documents like pay stubs to the lender to verify, in addition to important documents like driver’s license, DD-214 forms, tax return documents, divorce decrees and other paperwork. It may seem cumbersome, but the faster you return these documents, the faster you get pre-approved.
In the end, you’ll obtain a pre-approval letter, which is not loan approval or a guarantee of financing. It is, however, something important to show your sellers and agent. The letter usually detail conditions that have to be met for the loan process to move forward. But pre-approval is not binding; you can be pre-approved from various lenders.
Seeking pre-approval status is a great way to understand what you can afford while giving sellers and agents a clear picture of your verified financial situation.
Learn More About Applying For A VA Loan