After you get approved for a VA home loan, the excitement of owning your dream home begins to set in. However, it is important to understand the subsequent steps to ensure a smooth transition from approval to closing. Below is a comprehensive guide on what happens after you secure that coveted VA loan approval.
1. Find a Real Estate Agent
Once you have your VA loan approval, the next step is to find a qualified real estate agent. Look for someone experienced in working with VA loans and familiar with the local housing market. A knowledgeable agent will assist you in locating properties that meet your needs and are eligible for VA financing.
2. Start House Hunting
With your real estate agent, start touring homes. Make a list of your priorities—such as the number of bedrooms, bathrooms, and proximity to schools or workplaces. Keep in mind that VA loans have specific property requirements, including safety, sanitation, and livability standards.
3. Make an Offer
After finding a home you love, work with your real estate agent to make an offer. Your agent will help you determine a fair price based on market conditions and comparable sales. The seller may accept your offer, reject it, or negotiate terms before reaching a final agreement.
4. Home Inspection
Once your offer is accepted, it’s crucial to schedule a home inspection—an essential step in the buying process. The inspection will identify any potential issues with the home. You might choose to request repairs or negotiate the price based on the inspector's findings.
5. Appraisal Process
With a VA loan, the next step is to arrange for a VA appraisal. This appraisal is required to confirm the home’s value aligns with the purchase price. An appraisal ensures that your investment is protected and that the property meets VA standards. If the appraisal comes in lower than the purchase price, you may need to negotiate with the seller or provide a larger down payment.
6. Finalize Your Loan
After successfully completing the home inspection and appraisal, you’ll finalize your VA loan. Your lender will require additional documentation, such as proof of employment, income verification, and more. Be prepared to provide any requested information promptly to avoid delays.
7. Prepare for Closing
Prior to closing, review the closing disclosure form, which outlines all the loan details, including closing costs, loan terms, and monthly payments. Ensure everything is accurate and ask your lender any questions you may have.
8. Closing Day
On the closing day, you’ll meet with the seller, real estate agent, and possibly a closing agent or attorney. You’ll review and sign the necessary paperwork, including the deed of trust and loan agreement. After signing, you’ll pay any closing costs that are due (though many costs can be rolled into the loan or covered by the seller).
9. Move Into Your New Home
Once the closing is complete and funds have been disbursed, you’ll receive the keys to your new home. Congratulations! You’re now a homeowner utilizing the benefits of a VA loan.
10. Post-Closing Responsibilities
After you’ve moved in, remember to maintain your home and keep track of your mortgage payments. Protect your investment through regular maintenance and consider refinancing options in the future if interest rates change.
Understanding the steps that follow your VA home loan approval can help streamline your home-buying experience. With proper planning and guidance, your journey to homeownership can be straightforward and rewarding.
