[VA Loan] VA Loan Requirements | VA loan process (Home Loan) VA Loans (Mortgage)



hey this is Krista mortgage Pro I'm gonna introduce you to what is a VA loan how does it work and 20 things you must know about a VA loan now any time through the video please like share and comment because I answer every question personally and thank you for your service number one if you have an honorable discharge or a general discharge a general discharge basically is somebody sometimes the military for one reason or another just lets you go early you didn't do anything wrong but with a general discharge you can also get a VA loan if you have a less than honorable discharge you would not be entitled number two dd-214 I need your dd-214 and what I'm gonna do is I'm gonna take that send it to the VA and I'm gonna get what's called your Certificate of Eligibility that's gonna tell us how much you're entitled to for a VA loan number three people often think I can only have one VA loan at a time well that's not true either if the VA loan that you might currently have is for a small amount you have an added eligibility you're not going to be able to buy too expensive homes with the VA but very often I see people with two VA loans at the same time number for maximum loan amount well first of all you can get a loan for a million dollars with a VA loan how does that work aren't there limits well kind of what happens is the VA is going to guarantee 25% of the loan now if the limit is four hundred and fifty three thousand one hundred that's what it is right here in San Bernardino County California if you want a house a hundred thousand dollars more five hundred and fifty three thousand one hundred you'd be required to put as a downpayment twenty-five percent of that amount so 25 percent over a hundred thousand you put a twenty five thousand dollars now if you want a million-dollar home you just put 25 percent of the amount over the four hundred and fifty three thousand one hundred now in every county in the country the loan amounts are different the limits are different so you'd have to check with you a county or you can reach out to me and I'd be happy to figure out wherever you are in the country and tell you exactly what the limit is number five down payment now I just mentioned in the last one if you go over the limit you have to put 25% of the amount over the limit for your County down otherwise it is a zero down payment loan that's a big deal where else you gonna get a zero down payment loan with the lowest interest rate number six a funding fee now how a VA loan works is there is a funding fee the first time you use it it's two point one five percent of the purchase price so as an example a two hundred thousand dollar loan two point one five percent is forty three hundred dollars if you use it for the first time they're gonna add forty three hundred dollars to the loan amount if you do it the second time we're looking at three point three percent so that would be sixty six hundred dollars added to your loan amount now there is one gotya one stipulation here one thing that's really really great is if you are a disabled vet what happens is that funding fee is a hundred percent waived doesn't exist you don't pay it number seven FICO score FICO stands for fair Isaac's corporation basically it's your credit score now with a VA loan some lenders all have different numbers I do as low as a 554 in order to help you get approved with zero down now the higher the FICO score the more you save and fees and on interest rate so we always want to take a look and see if we can raise your score easily and quickly in order to save you that extra money however very often with a 555 go score I could get people approved number eight if we know what the FICO score is and we know what we have to do we know what the approximate purchase price is we know what the approximate payment is we're gonna do what's called a pre-approval now many people hear of it it's not a pre-qualification a pre-qualification says you told me the information verbally over the phone and I've been doing this for so long I know if you've been approved or not but that's just a pre-qualification a pre-approval requires me looking at all your documentation and I'm going to talk about the documentation a minute or two but I'm gonna look at all your documentation I'm gonna make sure your income is there I'm gonna make sure your assets are there your FICO score is there your dd-214 all the pieces the Certificate of Eligibility we're gonna put all those pieces together we're gonna evaluate them now after all these years I could pretty much do it standing on my head I know exactly what we need to do but I take it to the next step what I'm actually gonna do is I'm gonna take those documents and I'm gonna number one I'm gonna computerize them I'm gonna put them into the system I'm gonna let the computer run your numbers and what's gonna happen is we hope to get an approval and basically it'll come back saying approve eligible that means you're approved you're eligible we do have to verify every little dot every I and cross every T now once in a while it doesn't come back approve eligible it may say refer eligible and that's usually when the income is either a little tighter or the credit score is lower on the five fifty five eighty and under range so it happens all the time and what we do that point is we are allowed to do what's called a manual on the right instead of the computer underwriting we can send it to an underwriter who's gonna evaluate all the numbers crunch the numbers and say does this meet VA guidelines for a VA loan and very very often we still get you approved number nine we have you approved the next step is an agent real estate agent is gonna take you out and show you properties maybe you've already seen a property maybe you haven't maybe you have an agent if you don't I know all the top-notch aides in the area who are gonna help you take it to the next level show you the houses show you what you are interested in you're gonna tell them you know I'm looking for this many bedrooms this many bathrooms in this area this is what I'm the School District I want I want to pull whatever it is their job is to find that house and represent you number 10 we get an offer accept that means the real estate agent who listed the house has presented your offer your price and your firms to the seller and the seller has accepted the terms now we're gonna do what we call opening up escrow we're ready to start the ball moving number eleven disclosures we are going to disclose all the financial numbers to you sometimes this takes a day or two because there's a lot of numbers every fee every everything has to be covered we have to figure out where is this coming from how much is it gonna cost you maybe nothing so we're gonna talk about that later too number twelve the appraisal we're not allowed to order the appraisal until the disclosures that I just talked about are signed once they're signed we have to order the appraisal on a VA loan through the VA portal and the VA is going to assign an appraiser they randomly will pick an appraiser we're not allowed to call them up hey Harry I want you to go do John's afraid it doesn't work that way we have to do this randomly and through the VA portal they're gonna order the appraisal which takes usually about a week or so they're gonna go visit the property they're gonna look at every little instance every little thing they're gonna take pictures of the house make sure it's safe they're gonna look at all different things to make sure and value they're gonna show us what the value that they figure is they're gonna say okay here's a comparable home three blocks away here's another comparable home a half a mile away that sold three months ago and here's one right down the block well this was the square footage here this is the square footage on this house and they're gonna compare they're gonna crunch all the numbers we don't get involved in that but it's gonna come back and say this is the value of the house we do that to ensure a couple of things one the lender wants to be sure that they're lending you money for a house that's worth what they're lending you number two we also want to protect you because what if you offer $300,000 for a house but it's only worth 275 that wouldn't make any sense for you so it's there to protect you and there to protect the lender number 13 income we need documental provable income if you can't prove it on paper it doesn't exist if you started working job last week a second job just because he did that doesn't mean we can use the income we can use one job and all the income or two jobs if he'd been working that job for two years so a lot of people try and buy a house so they just we started three months ago well that's great that you save some extra money but we can't use that income now how do we determine income super important are you paid how early are you paid salary salary is easy you could pay $5,000 a month you $5,000 a month but if you get paid twenty dollars an hour okay how many hours do you work a 40-hour workweek or do you work a fifty hour work week well we're gonna use the 40-hour work week and the rest is going to be overtime how we use over time is we average it over the last two years because if you started working overtime six weeks ago we can't use that also bonuses and Commission we have to average those also see it can't be brand new income with no history they need to see a history to determine can you really afford this if you're a disabled vet and you receive disability income from the VA what happens is we can gross that up 25% let me explain if you are let's say a 50% disabled then you're getting roughly $1,000 a month we get to add 25% of that so it's one thousand two hundred and fifty dollars as your income why can we do that well you don't pay taxes on that money so that's a big deal we evaluate your income taxes the family not just yours if if your wife or a husband is going on the loan with you we can use both incomes but only a husband and wife can go on the same va loan or to veterans as an example you cannot have a fiance and and the veteran it just doesn't work that way they must be married or both of them would have to be veterans true story I once went to a wedding where I did a loan for my friends they wanted to buy this house but they weren't married yet so what I did was I told them you have to be married if you're going to this house cuz you need both incomes I went to their weddings six months later and my wife and I were the only people there who knew they've been married for six months number fourteen documentation super important you know but most people it's pretty straightforward if it's a VA loan we always start the most important documents to start with is we need your dd-214 we start there we're gonna order your Certificate of Eligibility so you don't have to next we're gonna look at your income we need one month's pay stubs if your spouse is also on the loan one month obviously for both if you have jobs we also need two years of income taxes and two years of w-2s very often when we run the approval it will not require income taxes but we do ask for them upfront because in most cases it will we're also going to ask you for two months of bank statements every single page please don't blacken everything out they won't accept that we need two months of bank statements we need a social security card and a driver's license now if you have a 401k or you have some kind of other income or documentation for savings of some kind whether it's retirement savings or whatever it just makes you a case stronger so give us that too if you've had a bankruptcy in the recent past we're gonna need bankruptcy documentation also so these things change with everybody everybody like a fingerprint has a little bit of a different situation so we stop there and then the underwriter is gonna ask for a little bit more a little bit more to prove little things sometimes a little can of worms opened up with a deposit that you made or something so they're always gonna ask for more get used to it that's how it works number fifteen termite report you know with an FHA loan conventional loans other types of loans we very often do not need a termite report on a VA loan it is mandatory every single time they are meant to protect you as the consumer you as the veteran who's buying this home they want to make sure you don't have a ton of termite damage or even a little termite damage that we don't want you to be responsible for now 4:16 it's starting to get exciting now you're finding the house that you're looking for we've gone through the pre-approval process we ordered the appraisal we ordered the termite it goes to the underwriter and the underwriter reviews all the documents and we get the approval and that is one of the most exciting things we're at the stage where we have the approval now what happens is they're always going to say I need this other piece of documentation or that piece of documentation that is very normal stuff but at least we know this is exactly what we need to get you in your own home number 17 you meet those conditions the conditions that the underwriter asked for he may say let me see the homeowners insurance or I don't like this or I don't like that let me just prove that you give us all those conditions hopefully you gave it to us very quickly because the quicker you give us the documents the quicker we close your loan number 18 closing disclosures these are the final numbers that is going to be used for the closing it's gonna say this is your interest rate this is what this cost this is what that cost there's a lot of different ways to do this but these are the final numbers if you have to come in with any money and we're still going to talk about if you do or not this is how it works they're gonna give you the final numbers number 19 along the way there were a couple of things that have happened one is you know that you had usually a zero down payment loan with the VA however there are still closing costs now there are three ways to pay closing costs one is we ask the seller to pay and sometimes we do get them to pay and sometimes you ask them for $8,000 for closing costs and they say we're gonna pay 3,000 so it's a negotiation back and forth sometimes you pay you can pay the rest or sometimes I can raise the interest rate up just a little bit and by doing that I get what's called the lender credit and we could apply that to closing costs now sometimes the seller says I'll pay three we raise the interest rate a little bit we get $3,000 in the lender it and you pay two thousand dollars out of your pocket see could be any combination of those things but this is how a VA loan works yes zero down payment but somebody's still got to pay those closing costs number twenty you sign the documents you sign the documents you and whoever is on title your spouse or whoever it is you sign the documents and then usually sometimes the same day if it's done real early or the next day we fund the loan that means the money has been wired to pay off your the other loan to pay off the purchase and now the house is yours with one small exception the county has to record it once they put their stamp of approval it is recorded with the county you have successfully after 20 steps fired your landlord

Author Since: Mar 11, 2019

  1. Hey, this is Chris the mortgage Pro. I'm gonna introduce you to what is a VA loan, how does it work, how to use your Veteran status and 20 things you must know about a VA loan. Thank you for your service. Please comment below if you have questions because I answer all questions personally.

  2. Using a va loan, so you think it would be better to pull half the money down for a home and make extra payments toward the principal to buy the home off faster or do you think it’s better to just get a loan no money down and pay toward peincipal every month? I don’t want to be almost broke to put a down payment on the home but I want a low monthly payment and it paid off early.

  3. Thanks for the video but I have a question what is the probability of buying a multi-family home with a VA loan

  4. Great videos! My father is a 100% disabled Vietnam veteran. Can we buy a home together with his va loan?

  5. I'm a Loan Officer outta NY and prior svc. I really enjoyed your vid, you know your sh*t.
    Best of luck and Semper Fi

  6. If this video provides any value please like and subscribe to the page! I happily answer all questions and comments personally so please feel free to comment here or just give me a call and I'm always happy to help you, and…Thanks again for your service!
    310-350-2546

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