Valorwise Home

The steps, in order

1. Get your Certificate of Eligibility (COE). It proves you can use a VA loan. A lender can pull it in minutes, or you can request it on VA.gov.
2. Know your budget. Fill in your service profile and check a few homes here to see what a home really costs with your benefits.
3. Talk to two or three VA lenders and get preapproved. A preapproval letter shows sellers you can buy. It's not just banks: credit unions and mortgage companies make VA loans too. If you already have a real estate agent, they may recommend a lender they've worked with. That can be a good option, but compare them with at least one or two others. How to pick a lender
4. Choose a real estate agent who knows VA loans. What to look for
5. Find a home and make an offer. This is when you ask the seller for help with closing costs and other items. Negotiating with the seller
6. Get a home inspection, and the VA appraisal happens. They're different, and you want both. Inspections & due diligence
7. Close. You'll get a Closing Disclosure at least 3 business days before closing. Compare it to your Loan Estimate, do a final walkthrough, then sign.
8. Right after closing, apply for your property tax exemption. It isn't automatic. File with your county assessor or tax office, usually with your VA benefit letter, and check the deadline so you don't lose any savings.

Paperwork lenders usually ask for

• ID: driver's license or military ID
• COE, plus your DD-214 if you've separated, or a statement of service if you're still serving
• Pay stubs for the last 30 days, or LES if you're active duty
• W-2s or tax returns for the last 2 years (2 years of full returns if self-employed)
• VA award letter showing your disability pay, and your retirement pay statement if retired
• Bank statements for the last 2 months, with an explanation for any large deposits
• Debts: car loans, student loans, child support or alimony
• Sometimes: rental history, a divorce decree, or letters explaining credit issues

Track it in your Buyer checklist

Good to know

• The VA doesn't set a minimum credit score, but most lenders look for about 620 or higher. Some go lower.
• Preapproval isn't a promise. Avoid new credit cards, car loans or job changes until you close.
• Official info: VA home loans on VA.gov.

Where VA loans come from

• Banks and credit unions, including military-focused credit unions.
• Mortgage companies and online lenders, some of which make mostly VA loans.
• Your real estate agent may know a good lender who has closed VA loans with them before. It's fine to use them. Just get a quote from at least one other lender to compare.
• Not every local bank does many VA loans. Ask how many they made last year. Experience means fewer surprises.
• Valorwise Home isn't paid by any lender and doesn't rank them.

How to compare

1. Check today's averages. The CFPB's free Explore interest rates tool shows typical VA rates for your credit score and down payment.
2. Get a Loan Estimate from 3 lenders on the same day. Rates move daily, so same-day quotes are the only fair comparison. How to read a Loan Estimate.
3. Compare the rate, the points, and the lender fees (Section A on page 2), not just the rate. A low rate with high points can cost more.
4. Use the lowest offer to ask the others to match. Lenders often will.
5. Check the lender's license on NMLS Consumer Access.

Questions to ask every lender

• How many VA loans did you close last year?
• What rate and points can you offer me today, and how long can I lock it?
• What are your lender fees? (On VA loans, the origination fee is capped at 1%.)
• Do you offer lender credits toward closing costs?
• How long do your VA loans usually take to close?
• Will you keep servicing my loan, or sell it?

About the rates on this site

The starting rates in Loan settings are national averages. Once you have a real quote, type it in to see your true cost.

Look for an agent who

• Has closed VA loans recently, ideally several in the last year.
• Knows the VA appraisal rules and can spot homes that might need repairs before a VA loan can close.
• Writes strong VA offers. Some sellers wrongly think VA loans are slow or hard. A good agent explains why yours is solid.
• Asks the seller for concessions like closing costs, and knows the VA limits.
• Understands military life, like PCS timelines, nearby bases and buying from far away.
• Answers quickly and explains things in plain language.

Questions to ask before you hire them

• How many VA buyers have you helped in the last year?
• Have you had a VA appraisal come in low or require repairs? What did you do?
• Will you ask the seller to pay my closing costs?
• How are you paid, and is that negotiable?
• Which lenders and inspectors have you worked with, and do you get anything for referring me?

How agents get paid

• You'll sign a written agreement with your agent, usually before they show you homes. It says how they're paid. Read it and ask questions.
• The pay is negotiable, and you can ask the seller to cover it in your offer.
• VA buyers can now pay their own agent if needed. Ask your lender how that fits your loan.

Red flags

• Pushes you away from using your VA loan.
• Pressures you to skip a home inspection.
• Insists you use one specific lender or inspector.
• Doesn't explain what you're signing.

VA appraisal vs. home inspection

• VA appraisal (required): checks the home's value and basic safety and livability. It's a quick look, not a deep one.
• Home inspection (your choice, and worth it): a detailed look at the roof, systems, structure and more. The VA doesn't require it, but it protects you.
• Put an inspection period in your offer (often 7–10 days), so you can ask for repairs or walk away if something big turns up.

Choosing a good inspector

• Check their license if your state requires one, and whether they belong to a group like ASHI or InterNACHI.
• Ask for a sample report. Good ones have clear photos and explanations, not just checkboxes.
• Read reviews and ask how long they've been inspecting. Don't just use whoever is suggested without checking.
• Go to the inspection. Ask questions and ask what they didn't check.
• Ask if they carry insurance for errors they miss.

Extra inspections to consider

• Termite / wood-destroying insects: the VA requires this in some areas; smart almost everywhere.
• Sewer line camera: older homes or big trees near the yard.
• Roof: if it's older than about 15 years or looks worn.
• Heating and air: older units can cost thousands to replace.
• Foundation or structural engineer: cracks, sloping floors or sticking doors.
• Radon and mold: especially basements and humid areas.
• Well and septic: water testing and a septic check if not on city services.
• Pool, chimney and electrical in older homes.

Due diligence checklist

• Flood zone: look up the address on the FEMA flood map. Flood insurance can be expensive.
• Homeowners insurance quote early, especially in Florida, California and coastal areas.
• HOA documents: fees, rules, budget, and any planned special assessments.
• Permits: ask the city if additions, garages or remodels were permitted.
• Property taxes after you buy: they may go up once the home is reassessed.
• Utility costs: ask the seller for a year of bills.
• Visit at night and on a weekend to check noise, traffic and parking.

After the inspection

• Ask for repairs, a credit, or a lower price. Negotiating with the seller
• Repairs the VA appraiser requires usually must be finished before closing.
• Do a final walkthrough right before closing to make sure repairs were done and nothing changed.

What the seller is allowed to pay

• All of your normal closing costs. Lender fees, appraisal, title, recording and similar costs. The VA doesn't limit these.
• Plus up to 4% of the home's value in extras (the VA calls these "concessions"): your VA funding fee, prepaid property taxes and homeowners insurance, and paying off debts like a credit card or collection to help you qualify.

Source: VA.gov, funding fee and closing costs. Your lender will confirm what counts toward the 4%.

How to ask, step by step

1. Know your number first. Ask your lender for a Loan Estimate. It lists your real closing costs and prepaids. Valorwise gives you a starting estimate.
2. Put it in your offer. Your agent writes the request into your written offer as a dollar amount, like "Seller to pay $9,500 toward buyer's closing costs." A specific number is clearer than "all closing costs."
3. Read the market. You have more room to ask when the home has sat for a while, the price has been cut, or there are few other offers. In a hot market, asking for less, or nothing, can make your offer stronger.
4. Consider a slightly higher price with a credit back. For example, offer $5,000 more and ask for $5,000 toward closing costs. The seller nets about the same, and you bring less cash. This only works if the home appraises for the higher price.
5. Ask again after the inspection if needed. If the inspection finds problems, you can ask for repairs or a price change. Repairs the VA appraiser requires usually have to be finished before closing, not handled as a credit.
6. Check it in writing. The final contract and your Closing Disclosure should both show the seller credit.

Sample wording for your agent

"Seller to contribute $[amount] toward Buyer's closing costs, prepaid items and VA funding fee, not to exceed the amount allowed by VA."

Seller credit or lower price?

Other things you can ask the seller for

• Repairs found in your inspection, or a credit or lower price instead.
• A home warranty for the first year, which covers many appliance and system breakdowns.
• Appliances or items to stay, like the washer, dryer, fridge or window coverings. Put them in writing.
• Paying your VA funding fee or paying down your interest rate (a rate buydown).
• Covering your agent's pay.
• A closing date that works for you, like one that lines up with PCS orders.

Some of these count toward the VA's 4% limit on extras. Your lender will confirm.

Good to know

• Don't ask for more than your costs. A credit bigger than your actual closing costs and prepaids can't be paid to you as cash, so the extra is lost.
• Your lender can't charge you certain fees. On VA loans, the lender's origination fee is capped at 1%, and some fees can't be charged to veterans at all.
• Every deal is different. Your agent and lender know your market and your loan. Use this guide to start the conversation.