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HallDoran Realty
HallDoran Realty
HallDoran Realty
HallDoran Realty
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Pre-Qualify For Your Loan Amount

Step 3 VA Loan Process

Step 3 In Obtaining A VA Loan

Step 3 In The 6-Steps of the VA Loan Process

GO BACK TO STEP 2 GO BACK TO VA PURCHASE & FINANCING JUMP TO STEP 4

Prequalification is an initial assessment of the borrower’s ability to qualify for a loan based on preliminary information about income, debt and credit; however, it does not guarantee loan approval.

Since VA loan prequalification is not the same as approval, what is the value of this optional step?

1.       Prequalifying can give you a ballpark price range for house hunting.

2.       It can help your loan officer get an early look at your credit and income and spot potential issues that might delay your loan.

3.       If you opt to prequalify, you can often prevent surprises later when you complete your formal loan application.

To help you get the most out of the prequalification process, here are some “dos” and “don’ts to follow for VA loan prequalifying:

1. DO TELL YOUR LOAN OFFICER EVERYTHING

Your loan officer needs to get a clear picture of your situation. So ANSWER ALL THEIR QUESTIONS!

Anything and everything that has to do with your income, debt and credit will need to be on the table. So, you may be asked questions like “Are you divorced?” and “Do you get child support?” Leaving bits of information out of the initial conversation with your loan officer may create problems later. Being candid from the onset will only help you achieve success.

2. DO ASK QUESTIONS

If you think something in your financial portfolio or personal life might be relevant to qualifying for a loan, ask about it. Maybe you have rental income or tips from a second job. You might have a large stash of cash in a retirement account or another asset that isn’t obvious to your loan officer at first. Additional assets can help get you approved, especially if you are on a fixed income, so be sure to bring them up if you choose to take this step.

3. DO UNDERSTAND THAT PRE-QUALIFYING IS NOT THE SAME AS APPROVAL

If your loan officer tells you that you’re prequalified, it doesn’t mean you’re automatically approved for a loan. You’ll still have to prove, through documentation, that you qualify. If you can back up all the income, debt and credit information you gave for this step, and there are no other qualifying problems that come up, then chances are good that the underwriter will stamp “Approved” on your VA loan application.

4. DON’T KEEP SECRETS

An important part of a loan officer’s job is to probe for information. Being completely honest about your financial affairs will aid your approval process and save time. If something comes up that could prevent approval, a good loan officer will be able to guide you in a direction that can help you get approved later.

5. DON’T PANIC

This step is a first glance at your credentials for a loan. Use this step to gain information about what you need to get approved. Worrying about a borderline credit score or an old bankruptcy isn’t going to help you or your loan officer. Instead, when you hit road bumps along the way, take a few deep breaths and then begin planning. It may take a little time, but commit to working diligently with your loan officer to fix issues that could be a roadblock to homeownership.

6. DON’T APPLY FOR NEW CREDIT AFTER YOU’VE BEEN PRE-QUALIFIED

In all the excitement of the home buying process, some borrowers forget that the loan is not complete until closing day. Now is NOT the time to get a new car or another credit card. New credit lines and loans will change your debt-to-income ratio and could affect your approval status. Wait until after your VA mortgage has closed to buy that new living room set or big screen TV.

GO BACK TO STEP 2 GO BACK TO VA PURCHASE & FINANCING JUMP TO STEP 4