Eligible borrowers should prequalify for a VA loan to get an idea of how much house they can afford.
Prequalifying for a VA loan is recommended for all eligible borrowers before they start shopping for a home. The prequalifying process provides potential borrowers with an estimate of how much monthly mortgage payment they can afford. Having a price range for house hunting can narrow down the prospects and save you time. There’s no sense in looking at a home you can’t afford.
VA home loan prequalifying requires some documentation
To prequalify for a VA home loan, an experienced loan professional will ask you questions about your income and credit history and may even run a quick credit report with your permission. You may also be asked for proof of military service and your Certificate of Eligibility (COE) at this time to be certain that you are eligible for a VA home loan. Be prepared to gather up other documentation such as:
- Pay Stubs
- Tax Returns
- Other Proof of Income
Prequalifying doesn’t replace the VA mortgage underwriting process
Prequalifying doesn’t guarantee that you will actually qualify for a VA loan, but it does give you a good idea of how much you can borrow if you do end up being approved. It can also help you identify potential problems with your credit or income before you commit to the actual VA loan application process. The only way to know if you qualify for sure is to apply for the loan and go through the VA mortgage underwriting process.
When all is said and done, prequalifying for a VA loan can be a good idea for all eligible borrowers who want to estimate their loan amount or reduce potential surprises in the approval process.