A Checklist of VA Loan Documents and Related Requirements

VA loans are appealing and easily available options for veterans and service personnel. This appealing lending offer enables you to obtain a house with a low down payment and interest rates.  

To obtain a VA loan, you must show a certain set of paperwork proving your eligibility and financial position. As a result, this thorough guide will go over a needed checklist of regularly asked VA loan paperwork as well as applicants’ relevant criteria.

Checklist of VA Loan Document Requirements 

In order to qualify for a VA loan, you need to provide your lending institution with certain real estate VA loan documents. Although, for the most part, all lenders require the same type of VA loan documents from borrowers. 

Here’s a checklist of standard VA loan documents: 

1. Certificate of Eligibility (COE): Veterans and service members must provide documentation that they are qualified for the home loan benefit. This documentation is provided by the Department of Veterans Affairs in the form of a formal document known as the Certificate of Eligibility.  

You do not need these formal VA papers to begin the loan procedure. In fact, once the process begins, lenders are frequently able to get this paperwork on your behalf. However, in rare situations, you may be required to produce extra evidence concerning your service history in order to get the Certificate of Eligibility.   

You can talk to your loan officer if you don’t have your COE or need one to qualify. 

2. Identity Verification: When applying for a VA mortgage, you must provide these documents. Prepare to produce a copy or image of your driver’s license, state identification card, or other government-issued ID. If you don’t have a scanner, don’t be concerned; photos of your ID are frequently acceptable. Just make sure it’s easy to grasp. 

3. Income Verification: W-2 documents, pay stubs, and tax returns can help determine your financial stability and ability to repay the loan. Almost all mortgage loans, including the VA loan program, need income-related documents. 

4. DD-214 Form: A DD-214 form, also called a Certificate of Release or Discharge from Active Duty, is a document you obtain after leaving the military. You might need it to get the Certificate of Eligibility.  

National Guard and Reserve Veterans might not have a DD-214 due to the nature of their service. In this instance, Veterans may need to get both the NGB Form 22 and their retirement points statement. 

5. Bank Statements: Lenders need to know your monthly spending habits; therefore, you will be required to provide bank statements. VA lenders must assess your assets to guarantee that you can afford to finance a mortgage and its related expenses.   

Print or scan all of the pages from your most recent bank statement. Some lenders may need many months of statements, so be prepared to provide a few months’ worth. 

6. Employment Verification: VA loan lenders may request employment verification to validate your work status and stability. This verification can be done via pay stubs, employment verification letters, or contacting your company. The job verification procedure varies amongst mortgage lenders. 

7. Credit Report: VA loan lenders utilize this document to evaluate your credit history, which affects loan approval and interest rates. But you do not need to worry about providing this document. The lender will request it directly from Equifax, Experian, and TransUnion. 

8. Debt Information: When applying for a VA loan, you may also be required to supply information about your current debts, such as vehicle loans, student loans, or credit cards. This provides lenders with a comprehensive overview of your financial responsibilities and aids in determining your debt-to-income ratio. 

9. Home Purchase Contract: This agreement describes the terms and circumstances of the house purchase, such as the purchase price, closing date, and contingencies. You can apply for a VA loan without a purchase contract, but you will need one later during the underwriting process. 

10. Property Appraisal: This document determines the fair market value of the property you’re purchasing and confirms that it fulfills the VA’s minimal property standards. The house appraiser will provide this report directly to the mortgage lender, leaving little for the buyer to do. However, you should still be aware of it. 

11. Homeowners Insurance Policy: This insurance protects your property from fire, theft, and other insured dangers. Most lenders need it as security for the loan. Most VA loan circumstances require the borrower to produce the policy binder (or other proof of insurance) for the final closing. 

12. Divorce Decrees or Child Support: If relevant, these papers might be required to demonstrate financial responsibilities like alimony, child support, or other legal or financial commitments. This information allows lenders to better understand your financial condition and assess your capacity to make mortgage payments. 

13. Other Documents: This checklist includes some of the most typical paperwork needed for a VA-guaranteed mortgage loan. Depending on your circumstances, you may be required to supply other papers that are not specified above.  

How to Submit Your ‘Loan Docs’ 

In recent years, many banks and mortgage lenders have transitioned to accepting electronic documents for the VA loan approval process due to their convenience and efficiency. The COVID-19 pandemic accelerated this trend by limiting face-to-face contact. 

But you don’t have to submit your VA loan documents electronically. Most mortgage lenders offer several different options when it comes to document submission. 

Here are the common steps to get a VA loan by submitting the required documents for loan application: 

• Electronic Submission: Most lenders accept electronic copies of papers via email or Internet platforms. You can photograph or scan your papers before securely uploading them to the lender’s website or sending them over encrypted email.  
• Fax: Although faxes are less prevalent now, certain organizations still accept them. To maintain secrecy, always utilize a secure fax line.  
• Postal Mail: Hardcopies can be delivered via regular mail; however, this method is becoming less popular owing to lengthier processing periods.  
• In-Person Delivery: Some borrowers prefer to hand-deliver documents to the lender’s office or meet with a loan officer to confirm receipt. 

The internet-based submission of VA loan documentation has grown in popularity owing to its speed, convenience, and security. However, your lender should provide you with clear instructions on this matter. They may have special standards or secure platforms to upload papers.

Different Avenues to Enjoy VA Loan Benefits 

Here are some of the VA loan benefits that you can avail of through various avenues: 

• Purchase Loans: This option helps you purchase a home at a competitive interest rate, often without putting a downpayment or private mortgage insurance.  
• Native American Direct Loan (NADL) Program: The program helps eligible Native American Veterans in finance matters concerning the purchase, construction, or home improvement on Federal Trust Land or reduce the interest rate on your VA loans.  
• Adapted Housing Grants: This grant aids veterans with a permanent and complete service-connected impairment to purchase, construct an acquired home, or modify an existing property to account for their disability.   
• Foreclosure Avoidance Assistance: VA loans provide financial counseling to aid veterans in avoiding foreclosure during times of financial crisis. 
• State Resources: Many U.S. states offer resources to Veterans, including property tax compensations to certain Veterans.
• VA Loan Overview Podcast: Listen to a podcast about the benefits of the VA Home Loan program and helpful tips about owning a home.

How to Facilitate the Process

If you’re like most VA loan borrowers, you’ll be eager to keep the VA home loan process on track and reach the finish line without any major delays. With that in mind, here are some things you can do to streamline the VA loan underwriting process and close on time:

1. Organize Your Documents

Having easy access to your financial information might save you time and effort when presenting paperwork. Gather your pay stubs, bank statements, tax returns, and other important papers beforehand. At the very least, figure out how to get them so you will be prepared when the time comes.

2. Respond Promptly to Lender Requests 

Mortgage lenders and underwriters frequently want more information or clarification during the application process. Responding quickly to such requests will keep the process running smoothly, which is what everyone wants.

3. Provide Accurate and Complete Information 

Ensure that any information you provide is correct and up to date. Incomplete or erroneous VA loan documentation might cause delays or extra requests for information.

4. Stay in Touch 

Continue to communicate with your mortgage broker, loan officer, or other point of contact. If your financial status changes or you anticipate difficulty in submitting particular documents, contact them right away.

5. Be Patient and Understanding 

The VA loan application procedure might take some time, and extra information or paperwork may be requested. Be patient with the process, and know your lender is working hard to achieve a good closure.

While the VA loan application process may appear complicated, it must not be daunting. Selecting an experienced lender and keeping open communication throughout the process may greatly impact your application.