Applicants for a home loan through the VA program will be asked to provide a number of documents for pre-qualification:
- Provide information about your military service – A Certificate of Eligibility is required to apply for a VA guaranteed home loan. This document can be acquired by filling out the appropriate form. However, you can start the process of pre-qualification before you receive the Certificate. In many cases, the lender will help you to file for the required document.
- Credit information – The lending institution may ask permission to look at your credit score. If there any problems with your credit record, they may suggest that you resolve past debts or correct information, in order to receive pre-approval.
- Employment information – The lender will ask to see proof of your current employment and previous employment. Generally, lenders prefer to see two years of consistent employment. However, gaps in your employment record do not necessarily disqualify you for a loan.
- Bank statements or investment statements – The lender will also want to know about your financial health in regard to how much money you have saved and any investments you may hold. This information would also include any real estate on which you hold the deed.
- Divorce and spouse/child support documents – Lenders generally also want information on divorce decrees and any support payments you are required to pay that could affect your ability to repay the loan.
Pre-qualification for a VA home loan can be an advantage that can help homebuyers get the best house for their needs at a price that is affordable. Consider getting pre-qualified when you begin to hunt for your new home.