How to get preapproved for a VA home loan

Quick insights

• Getting preapproved for a VA loan may help your offer be taken more seriously by sellers. It can also help you determine how much home you can afford based on your current financial situation.
• To get preapproved for a VA loan, you’ll need to provide your lenders with a Certificate of Eligibility (COE) and documentation related to your employment, income, credit and assets.va-loan-requirements-experian-24
• Avoiding sudden changes in employment or taking out new loans can help make the preapproval process easier.

For eligible veterans and their surviving spouses, the U.S. Department of Veterans Affairs’ (VA’s) loan program can offer a powerful pathway to homeownership. One of the first steps in getting a VA home loan is the VA preapproval process. 

Getting preapproved for a VA loan may strengthen your buying position and provide you with information that could help you execute a more effective home search. Learn more about how the VA loan preapproval works, what you’ll need to qualify and how to set yourself up for a less stressful homebuying process.

What is VA loan preapproval?

VA loan preapproval is the process of a VA-approved lender reviewing your application to determine if you’re eligible for a VA loan. If approved, the lender will also explain how much you’ll be able to borrow. Once the lender preapproves you, they can provide a preapproval letter, which you can share with sellers when making an offer on a home or other property.

A preapproval letter has two key benefits. First, it shows sellers and their agents that a lender has reviewed your information and is willing to trust you with a mortgage loan. This can give you an advantage over buyers who haven’t been preapproved. 

Preapproval also gives you a better understanding of what you can afford based on your finances. This helps you and your real estate agent to find homes that are in your price range and fit your budget.

How to get your VA loan preapproval letter

Before you can get preapproved for a VA loan, you’ll need to meet the minimum requirements set by the VA.

1. Provide a Certificate of Eligibility (COE)

Your Certificate of Eligibility (COE) provides the lender with proof of your service and confirms you’re eligible to receive a VA loan. The COE will usually include information about your term of service and current status as a veteran or the surviving spouse of a veteran.va-home-loan-coe-24

You can usually obtain a COE through the VA’s website, your lender or by mailing in VA Form 26-1880. Your lender can often retrieve your COE in minutes if your eligibility is already in the system.va-home-loan-coe-24

2. Meet the financial requirements

Before applying for a VA loan, you’ll want to check your financial situation. This includes looking at the following:

• Debt-to-income (DTI) ratio: This is your fixed monthly expenses divided by your gross monthly income. For VA home loans, lenders prefer a DTI of 41% or lower.va-loan-requirements-experian-24
• Credit score: While the VA doesn’t set a minimum credit score requirement, many lenders prefer a score of at least 620.va-loan-requirements-experian-24
• Closing costs: This is the money you’ll need to pay upfront for your mortgage. While VA home loans allow you to buy a home with as little as 0% down, you may need money to cover origination fees, title fees and other expenses.va-borrower-fees-and-charges-24 These often range from 2-5% of the loan’s value.fannie-mae-closing-cost-calc-25 Additionally, the VA does limit the amount of closing costs a lender can charge a veteran.

If you have high-interest debt, like credit card balances, try to pay them down as much as possible before you apply for a VA home loan. This can help improve your debt-to-income ratio and credit score.

3. Gather your preapproval documents

In addition to your COE, you’ll want to have the following documents ready to share with your lender.

• Proof of identity: This may include a valid passport, driver’s license and a Social Security card.
• Proof of income and employment: Lenders will also want to verify that you have a stable, reliable income to ensure you’ll be able to cover your mortgage payments and any other debts. Required documents can vary by lender. They may include paystubs, W-2s, 1099s, recent tax returns, disability or pension documentation or bank statements.
• Other financial statements: This may include asset statements, gift letters from family members or retirement account statements.

4. Get qualified with a VA-approved lender

Once you find a VA-approved lender that you want to work with, you’ll need to provide them with the requested documentation and fill out a standard loan application. Once you’ve done that, your lender will review your information and determine whether to preapprove you for a VA loan and how much they will be willing to lend.

Make sure any information you provide your lender is as accurate as possible. This helps the lender ensure your eligibility and allows them to more accurately determine how much you can borrow. If your lender asks for additional information, be as responsive as possible to avoid delays.

Also, you don’t have to stick with the lender who provides you with your preapproval. Don’t be afraid to shop around for a better offer.

5. Put your preapproval letter to work

Based on your information, your lender will provide you with a preapproval letter. You and your real estate agent can include this as a part of any offers you make on potential homes. The preapproval shows sellers that you’re a serious buyer and can help strengthen your buying position.

In summary

As a qualified veteran, getting preapproved for a VA loan can get you started on the path to homeownership. Understanding the preapproval requirements and preparing your documentation ahead of time can make the process easier to navigate. If you’re not sure what you need to do to start the preapproval process, talk to a home lending expert. They can provide you with the guidance you need to get started.

VA loan preapproval FAQs

What is the difference between VA loan preapproval and VA loan prequalification?

Prequalification is an estimate of how much you might be able to borrow, based only on information you provide to the lender. It’s a good first step, but the more complete credit and income checks that come with preapproval are a stronger indication to a seller that you’re a serious homebuyer who can qualify for a VA loan. Chase does not offer loan prequalification.

How long is a VA loan preapproval good for?

A VA loan preapproval is typically valid for 60–90 days, depending on the lender. If it expires before you find a home, you’ll want to renew your preapproval with your lender. You can usually do this by updating your financial documents and getting a new credit check.how-long-mortgage-preapproval-25

Is a VA loan better than a conventional loan?

For eligible borrowers, a VA loan may offer more benefits compared to a conventional loan, including no down payment or mortgage insurance requirements and more flexible credit requirements. However, borrowers may find that a conventional loan offers greater flexibility, especially if you’re planning to buy an investment property rather than a primary residence.