The Center For Debt Management
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VA Home Loans

VA home loans are often made without any downpayment at all. Aside from the veteran's certificate of eligibility and the fact that the appraiser is assigned by VA, the application process is not much different than any other type of mortgage loan. And if the lender is approved for automatic processing and the Lender Appraisal Processing Program (LAPP), as more and more lenders are now, a buyer's loan can be processed and closed by the lender without waiting for VA's approval of the credit application or for VA to review the appraisal.

Lenders are also able to use VA recognized automated underwriting systems, such as Loan Prospector and Desktop Underwriter, to facilitate the underwriting process.

FIVE EASY STEPS TO A VA LOAN

1. Apply for a Certificate of Eligibility (COE).

A veteran can obtain a COE by completing VA Form 26-1880, Request for a Certificate of Eligibility, and mailing it, along with proof of military service, to the eligibility center. Also, veterans who have already begun the loan application process with a lender may request the lender obtain a COE through webLGY, which is accessed through the VA portal.

2. Decide on a home to buy and sign a purchase agreement.

3. Order an appraisal from VA.
(Usually this is done by the lender.
)

Ordering an appraisal can be done via the Internet using TAS
(The Appraisal System). This is a centralized system that allows lenders easy and quick access to order an appraisal.

4. Apply to a mortgage lender for the loan.

While the appraisal is being done, the lender can be gathering credit and income information. If the lender is authorized by VA to process loans on the automatic basis (and approx. 99 percent of all VA loans are processed this way), the loan can be approved and closed upon receipt of the appraised value determination without waiting for a VA review of the credit application. VA has also approved the use of several automated underwriting systems for lenders to use in connection with VA loans. The two main systems are Loan Prospector and Desktop Underwriter. For loans that must be approved by VA, lenders send the credit package to VA. VA staff will then review it and notify the lender of the decision.

5. Close the loan and move in.

To learn more about VA Loans check our the articles below.


VA Loan Articles

VA Financing: A Good For Veterans

What is a VA Guaranteed Loan?

How To Get A VA Loan

Cost of Obtaining a VA Loan

Looking For The Best Mortgage: Shop, Compare, Negotiate


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