While looking for the best type of home loan for you, there’s a lot to keep in mind. The reason a VA loan is so desirable to prospective homeowners is because – unlike conventional and FHA loans we have discussed in other blog posts – if you or your spouse has served in the United States Armed forces, you have some great opportunity for savings. You aren’t required to have a downpayment and you won’t pay private mortgage insurance because VA loans are backed by the federal government. You’ll also qualify for competitive mortgage rates!
All this means you’ll get to build equity faster and save a lot of money over the life of your loan. There are no prepayment penalties, so when you weigh the benefits and work with the experts at EPM, your homeownership can become a great way to build your personal wealth .
Sounds amazing right? We want to help get you into that home, and we want to make sure you’re prepared, so we’re listing the documents and records you’ll need to have in order to get the application process started.
Start out Prepared and Informed
It can feel overwhelming, especially since there have been a lot of unexpected changes for many families over the past couple of years. But once you can confidently check these items off your list, you will be in a good position to move forward.
- Proof of Military Service, Social Security number, and Photo ID- You have to meet specific military service requirements in order to qualify for a VA loan
- Income Verification- Our underwriters will want to see consistency in your income so a couple of years worth of W-2s and/or paycheck stubs will show them you have the capacity to pay off your loan on time. This can get tricky if your employment history has changed due to factors like moving out of the area or was affected by covid.
- DD-214 if you have left the service, or a signed Statement of Service if you are still active duty. It will require your social security number, date of birth, date you entered and any lost time, name of command and commanding officer’s signature.
- Prior Addresses over the past 2 years- even if it was temporary.
- 60 days off bank statements (all pages must be included) for all accounts – your lender will want to know you can cover closing costs
- 2 most recent tax returns
- Childcare Costs- This one takes people by surprise, but if you have children, most lenders will ask you to provide a statement listing the cost of childcare or child support. If you don’t pay for childcare, a statement explaining the situation will still be requested
- Credit History- The VA doesn’t have specific minimum credit scores, but you want to be clear with your lender about where you stand financially so they can help you understand your options and help you make sound financial decisions.
Contact a Lender to get Started
While this isn’t an exhaustive list of all the documents and forms you’ll need to apply for a VA loan, it is a great start- and will help you feel like you have a strong picture of your financial standing as you enter into the commitment of a large investment.
EPM is always here to answer your questions, provide the resources you need, build your loan knowledge, and empower you to take control of your financial future with confidence. Contact a trusted lender today, and let us help you purchase the perfect home.