How to prequalify for a VA loan
Being pre-qualified (also know as “pre-approved”) for a VA home loan, or any home loan gives you more freedom and control when looking to purchase a new home. The buyer has the reassurance that they have already been approved for up to a certain amount for a home loan, and the seller knows that the buyer means business and is serious about buying a home. Pre-qualifying for a loan is not a complicated process, and it will help to know what price range of house you can shop for.
To be pre-approved for a VA home loan there are some things you need to do:
Find an approved lender.
Determine your eligibility for a VA home loan by having the lender help you to get a certificate of eligibility, which can now be done by the lender in minutes on the computer through the ACE (electronic certificate of eligibility) system.
Give the lender all other pertinent information, like tax returns, income information, a credit report, etc.
After you have given the lender all the information they need, they will be able to tell you how much you are pre-approved for. Once you are pre-approved for up to a specific loan amount, the lender will also give you a pre-approval notice that states you have been approved for a loan for up to a certain amount, and you can show this document to sellers when you make an offer on their house. This way they know you have a genuine interest in purchasing their home and are not wasting their time.
If you are interested in getting a VA loan pre-approval, this is your first step. This way you know your lender is authorized to work with the VA and you can get your pre-approval through one of these lenders and begin house hunting.