The VA Loan Process

Getting a VA loan isn't significantly different from getting any other type of mortgage. For homebuyers, the VA loan has five basic steps: preapproval, house hunting, getting under contract, underwriting and closing.

This process typically results in a stronger financial future, using arguably the most powerful mortgage product on the market.

Here we detail the step-by-step process of getting a VA loan and how Veterans can get the most out of their VA loan benefit.

List some preferred lenders here (and other VA resources maybe?)

Step 2: The House Hunt

With your preapproval letter in hand, you're ready to start the most exciting stage of the VA purchasing process – the house hunt.

Finding a real estate agent like Cyleste, who truly knows VA loans is critical. These are more specialized home loan options, and some properties can be a better fit for VA loans than others. Plus, VA loans also offer big-time advantages when it comes to things like closing costs, and veteran-friendly agents can help buyers get the most from their benefits.

Like the other government-backed mortgage options, VA loans are for purchasing primary residences you intend to live in full-time. Veterans can look to buy a multi-unit property (up to a four-plex) as long as they plan to live in one of the units.

Homes generally need to be in good shape. The VA appraisal process includes a look at the home in light of some general property condition requirements, known as the Minimum Property Requirements (MPRs). MPRs are a high-level overview and not as in-depth as a home inspection. The VA doesn't require a home inspection, but home inspections are almost always a sound investment.

If the appraiser notes MPR issues, they may require fixing before closing the loan. VA buyers can ask sellers to pay for repairs and even cover the cost themselves if needed.

Once you find a home you love, the next step is making an offer to buy it.

Step 3: Getting Under Contract

We will craft a strong offer based on your input and will look at recent comparable home sales in the area to help shape your starting point for a purchase price. Pricing and negotiation strategies can vary depending on the real estate market, the home and much more.

Veterans should discuss closing costs with their agent before making an offer. VA loan closing costs can vary depending on a host of factors. Buyers can ask sellers to pay all their loan-related closing costs and up to 4 percent in concessions, which can cover escrow expenses and much more.  Be aware that the seller does not have to agree to pay the buyer’s closing cost.

Most prospective VA buyers will present a contract with several contingencies that cover specific events leading up to the loan closing. Typical contingencies include the right to have a home inspection, handling repair requests, the number of days the buyer has to secure financing, the required earnest money deposit and more.

Every VA contract features added protection for the Veteran's earnest money regarding the VA appraisal. A special addendum ensures VA buyers get their earnest money back if the property's appraised value comes in low and the Veteran decides to back out of the deal.

It might take VA buyers a couple of rounds of negotiation to lock down a purchase agreement. Also, keep in mind some markets are tougher than others. You may make offers on multiple homes before finding something that works. Every buyer-seller situation is different.