Whether it is a VA loan or a conventional mortgage, many people have their home loan applications denied because of missing documents or unsigned paperwork. In fact, missing documents and unsigned paperwork are two of the biggest reasons veterans have delays in the VA loan process.
It is important to ensure you have all the required documents accessible and ready to be handed over to prevent this from happening. While the mortgage process does involve a lot of paperwork, at Reichert Mortgage Team, a mortgage broker in Colorado Springs, we want to make this process as easy as possible for you to receive a VA loan. That is why we have prepared a list of all the documents you need to apply for a VA loan.
What is a VA Loan?
For those who are not aware, a VA loan is a mortgage loan only available to veterans, service members, and their surviving spouses. This enables these individuals to purchase a home with little to no down payment, no private mortgage insurance, and to get a competitive interest rate.
This program was created by the Department of Veteran Affairs to help veterans, families of veterans, and service members be able to purchase a home. At the Reichert Mortgage Team, we provide VA loans to the southern Colorado area. We want veterans to be able to have a safe and reliable home. That is why we have put together a list of documents you need to be approved for a VA loan.
- An Identification Card
When you apply for a VA loan, you must provide proof of your identity. Your driver’s license, state-issued identification, and other government-issued identification are all examples that can be used to prove your identity to be approved for a VA loan. Be prepared to send a picture or a copy of one of these identification documents. If you do not have access to a scanner, most places accept a picture of your identification card, as long as the picture is clearly visible, in color, easy to read, and on a plain background.
- Verification of Employment
When you apply for a VA loan, you need income documentation or proof of employment. You must verify all your sources of income and either a written or verbal statement of employment. Depending on your financial situation, these are some documents that can be counted as a verification of your employment:
- Verification of liquid assets
- 2 years of W-2 statements
- Most recent pay stubs
- VA disability award letters
- Social security award letter verifying income
- Most recent bank statements
- Retirement / investment accounts
- Divorce decree verifying proof of child support or alimony
If you are self-employed, these are some forms of documents you may need to have on hand:
- Commission income
- Income from rental properties
- 2 years of federal tax returns
- Certificate of Eligibility
Veterans and those who have served need proof that they are eligible for the home loan benefit. The Certificate of Eligibility is a formal document issued by the Department of Veteran Affairs that provides this proof.
While you do not need this documentation to start the VA loan process, it is important that you are prepared to attain this documentation later in the mortgage process.
In rare cases, you might be asked to provide additional documentation about your service history in order to secure the Certificate of Eligibility. For instance, veterans discharged from service may need a DD-214, and those on active duty may need to provide a Statement of Service (provided by their commanding officer), while a National Guard member will need to provide their point statement.
However, the Certificate of Eligibility varies, so it is important to get in touch with your loan officer to be certain of what documentation you need to provide.
- General Information
When applying for a VA loan, you will need to provide your current address, along with a valid phone number, and email address. You may have to provide some of your past addresses depending on how much you have moved around in the past couple of years. If you rented at any of your previous places, then make sure you have your proof of payment and residency ready to give over to your loan officer.
Usually, your loan officer will ask you for these later in the VA loan process, but we want you to be as prepared as possible, so you are able to get approved for your VA loan.
- VA Loan Refinance Checklist
When you get approved for a VA loan, you get access to beneficial mortgage refinance programs. The VA Streamline Refinance, also known as the Interest Rate Reduction Refinance Loan (IRRRL), is one of the most effective ways to lower a veteran’s monthly payment and interest rate.
Most individuals prefer this program as a way to streamline refinancing with less documentation. For example, if you already provided your DD-214 and COE with your VA loan, you might not have to provide those other documents.
Perhaps the most attractive benefit of an IRRRL is the documents that you are not required to provide for your VA loan, including:
- Credit reports
- Employment verification
- Home appraisal
- Income documents
While the VA loan might not require this of you with an IRRRL, it is important to note that your lender might. Documentation guidelines vary depending on the loan officer. So it is important to ask your lender about any other forms of documentation you may need to provide during the VA loan process.
Buy the Home of Your Dreams With a VA Loan from the Reichert Mortgage Team
Buying a home is an overwhelming and stressful process. Many forms of documentation must be provided before closing on a home and receiving a VA loan. A VA loan is a great way for veterans to finance their homes, however, the process is lengthy and tiring.
At the Reichert Mortgage Team, we want to make this process as seamless as possible for you. We are proud to serve Colorado Springs as the best mortgage broker. We work alongside our clients to help answer any questions about VA loans, FHA loans, home appraisals, and any other questions you may have about buying a home. To learn if you qualify for a VA loan, or if you have any other questions about home mortgages, contact the Reichert Mortgage Team today!