7 Steps In The VA Loan Process
By Oscar T Blasingame, Esq. (Realtor, Florida attorney, and former Judge Advocate.)
Purchasing your home with a VA loan is a complex process, but the financials benefits are significant. Here are the basic 7 Steps in the VA Loan Process.
1.) Secure a Real Estate Professional
Servicemembers and veterans should find a real estate professional to work with. Someone who has a basic knowledge of the armed forces and VA Home Loan Program. The real estate professional is essential and will guide the servicemember or veteran through the maze known as the home buying process.
2.) Find a Participating VA lender
Locate a lending institution that participates in the VA program. Borrowers may want to get “pre-qualified” at this point – that is, find out how big a loan you can afford. Lenders set their own interest rates, discount points, and closing points, so borrowers may want to shop around.
3.) Get a Certificate of Eligibility (COE)
The Certificate of Eligibility (COE) verifies to the
lender that the borrower meets the eligibility
requirements for a VA loan.
4.) Find a Home and Sign a Purchase Agreement
Work with a real estate professional and negotiate a purchase agreement. Make sure the purchase and sales agreement contains a “VA Option Clause.” Here’s a sample of a “VA Option Clause”:
“It is expressly agreed that, notwithstanding any other provisions of this contract, the purchaser shall not incur any penalty by forfeiture of earnest money or otherwise be obligated to complete the purchase of the property described herein, if the contract purchase price or cost exceeds the reasonable value of the property established by the Department of Veterans Affairs. The purchaser shall, however, have the privilege and option of proceeding with the consummation of this contract without regard to the amount of the reasonable value established by the Department of Veterans Affairs.”
In Florida, this is accomplished through an Addendum submitted to the seller with the contract. This must be made part of the original offer or you may not be able to go back and have the seller agree to the VA Option Clause, which would prevent you from using VA loan financing.
5.) Apply for a VA Loan
Work with the lender to complete a loan application and gather the needed documents,
such as pay stubs and bank statements.
Click here for the 10 Top VA Lenders of 2016
6.) Loan Processing
The lender orders a VA appraisal and begins to “process” all the credit and income information.
The lender chooses a title company, an attorney, or one of their own representatives to conduct the closing.
This person will coordinate the date/time and the property is transferred. If the borrower has any questions during
the process that the lender can’t answer to satisfaction, please contact the VA through the VA Regional Loan Center.
About the Author of 7 Steps in the VA Loan Process.
Oscar Blasingame is a practicing real estate attorney and Realtor in St Petersburg, Florida. With almost 30 years of experience in real estate sales a law, Oscar provides full service legal representation and Realtor services in the Tampa Bay area. He is a veteran of the US Army and a former Judge Advocate. If you are a Veteran looking to buy a home, them contact Oscar today and get the representation you deserve!
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7 Steps In The VA Loan Process