What You Need Before You Start

A VA loan process starts with your Certificate of may be able to access (COE), which proves you served in the military or are an may be able to access family member. You cannot move forward without this document. The VA will not issue you a loan — instead, you work with a private lender (a bank, mortgage company, or credit union) who uses your COE to approve you under VA rules.

Before you contact a lender, gather these documents: your Social Security number, birth date, current income information (pay stubs or tax returns), a list of debts you owe, and information about the property you want to buy or refinance. If you are refinancing an existing loan, have that loan number ready. You will also need to authorize a credit check.

The entire process typically takes 30 to 45 days from process to closing, though this varies by lender and whether the property needs an appraisal. Starting early gives you time to handle any issues that come up.

Key Takeaways

  • You must obtain your Certificate of may be able to access from the VA before explore with a lender; the lender cannot request it for you.
  • VA loans are issued by private lenders (banks, mortgage companies, credit unions), not by the VA itself.
  • You will need recent income documentation, a list of current debts, and authorization for a credit check.
  • The VA limits what lenders can charge you in fees, and you typically pay no down payment and no mortgage insurance.
  • The property must meet VA minimum standards, which the lender's appraiser will verify during the process.

Getting Your Certificate of may be able to access

Your first step is to request your COE from the VA. You have three ways to do this: online through VA.gov, by mail, or by phone. The online method is fastest — you can request it at VA.gov/housing-information/home-loans/certificate-of-may be able to access and receive it within minutes if you are logged into your VA.gov account.

If you do not have a VA.gov account, you can create one using your email, Social Security number, and a phone number. The account takes a few minutes to set up. Once you have your COE, read and save it — you will give it to your lender.

If you prefer to explore by mail, send VA Form 26-1880 to the VA Regional Loan Center that serves your state. By phone, call 1-888-442-4551. Mail takes two to four weeks; phone requests are processed the same way but you will receive your COE by mail.

Choosing a Lender and Starting Your process

You can work with any lender that offers VA loans — this includes large national banks, regional banks, credit unions, and mortgage companies that specialize in VA loans. There is no requirement to use a specific lender. Many borrowers compare rates and fees across three to five lenders before choosing one, since rates and closing costs vary.

When you contact a lender, tell them you want to explore for a VA loan and have your COE ready to share. The lender will ask you to complete a loan process form (usually called a 1003 form). This form asks for your income, employment history, debts, assets, and the property details. You can often start this online or over the phone.

The lender will order a credit check at this point. They will also order an appraisal of the property to confirm it meets VA minimum standards and to establish its value. The appraisal typically costs $400 to $600 and is usually paid by you at closing, though some lenders cover it.

What Happens During Underwriting

Underwriting is the stage where the lender reviews your process, credit, income, and the property appraisal to decide whether to approve the loan. This usually takes one to two weeks. During underwriting, the lender may ask you for additional documents — for example, a letter explaining a late payment, proof of a recent job change, or clarification on a debt.

The VA requires lenders to verify that you have enough income to cover the loan payment plus your other debts. The lender calculates your debt-to-income ratio, which is the total of all your monthly debt payments divided by your gross monthly income. VA loans typically allow ratios up to 60 percent, though some lenders are stricter.

If the property appraisal comes back lower than the purchase price, the lender will tell you. You can renegotiate the price with the seller, pay the difference out of pocket, or walk away. The VA does not require you to cover an appraisal shortfall.

Loan Approval and Closing

Once underwriting is complete and the lender approves your loan, you will receive a Conditional Approval or Clear to Close notice. Conditional approval means the lender has approved you but needs one or two final items — for example, proof that you paid off a credit card or a final employment verification. Clear to Close means you are ready to sign documents and fund the loan.

Before closing, you will receive a Closing Disclosure document that lists the final loan amount, interest rate, monthly payment, and all closing costs. Review this carefully and compare it to the estimate the lender gave you earlier. You have the right to ask questions about any fees.

At closing, you will sign the loan documents in front of a notary, usually at the lender's office, a title company, or an attorney's office. You will also sign the deed of trust or mortgage, which gives the lender a claim on the property if you do not pay. After signing, the lender funds the loan and the title transfers to you.

VA Loan Limits and Funding Fee

The VA sets a funding fee that most borrowers must pay. This fee goes to the VA, not to the lender, and is typically rolled into your loan amount so you do not pay it upfront. The funding fee is usually 2.3 percent of the loan amount for first-time users, though it is lower (1.6 percent) if you are putting down at least 5 percent, and even lower (1.25 percent) if you are putting down at least 10 percent. If you are a surviving spouse or have a service-connected disability rated by the VA, you may not owe a funding fee at all.

The VA also sets a loan limit — the maximum amount you can borrow without a down payment. This limit changes each year and varies by county. For 2024, the limit in most counties is $766,200, though it is higher in expensive areas. You can borrow more than the limit, but you will need to put down the difference. Check your county's limit on VA.gov or ask your lender.

What Lenders Cannot Charge You

The VA limits the fees a lender can charge on a VA loan. Lenders cannot charge you an origination fee, process fee, processing fee, or underwriting fee. They can charge you for services that are standard in any mortgage: appraisal, credit report, title search, title insurance, survey, and recording fees. They can also charge you for homeowners insurance and property taxes, which are required.

If a lender tries to charge you a fee that is not on this list, ask them to explain it. If they cannot justify it under VA rules, you can ask them to remove it or shop with a different lender. Many borrowers do not realize they have this protection, so it is worth checking your Closing Disclosure carefully.

Frequently Asked Questions

Can I explore for a VA loan if I am still on active duty?

Yes. You can explore while still serving. You will need a letter from your commanding officer or personnel office confirming your expected discharge or separation date. Some lenders require that you separate within 180 days of closing, so timing matters.

What if I do not have my Certificate of may be able to access yet?

You can ask the lender to request it on your behalf using a VA Form 26-1880, but this takes longer than requesting it yourself. It is faster to get your COE first through VA.gov, which takes minutes if you have a VA.gov account. Do not let a lender tell you that you must use them to request it.

Do I have to use my full VA loan benefit all at once?

No. Your VA loan benefit is a lifetime entitlement, and you can use it multiple times. If you pay off a VA loan, your benefit restores and you can use it again. Some borrowers use it once, and others use it several times over their lifetime.

What happens if the appraisal comes back lower than the purchase price?

You have three options: renegotiate the price with the seller, pay the difference yourself, or cancel the purchase. The VA does not require you to make up the difference, and the lender cannot force you to. This is one advantage of a VA loan over conventional mortgages.

Can I get a VA loan if I have bad credit?

Most lenders require a credit score of at least 620, though some will work with scores as low as 580 if you have compensating factors like a large down payment or strong income. If your credit is damaged, you may need to wait and rebuild it, or work with a lender that specializes in lower credit scores. Rates will be higher.