VA Loans in Colorado – 5 Easy Steps

Tiffany Hughes of KC Mortgage LLC is a Certified Military Housing Specialist:

What Does that Mean?

Not only do we know VA Loans, we have been certified to have a clear understanding of how to work with military personnel.  We understand the unique circumstances associated with military service, in regards to military pay, allowances, and other special compensation applicable to active duty and veterans.  Additionally, we adhere to specific Standards of Practice, representing a commitment to provide the skilled level of service military borrowers deserve.   USA Cares provides so much more than military housing advocacy.  For more info on this program and listing of participating lenders, go to www.usacares.org.

 

WHY A VA LOAN? (As outlined by Veterans Administration here)

The more you know about our home loan program, the more you will realize how little “red tape” there really is in getting a VA loan. These loans are often made without any downpayment at all. Aside from the veteran’s certificate of eligibility and the fact that the appraiser is assigned by VA, the application process is not much different than any other type of mortgage loan. And if the lender is approved for automatic processing and the Lender Appraisal Processing Program (LAPP), as more and more lenders are now, a buyer’s loan can be processed and closed by the lender without waiting for VA’s approval of the credit application or for VA to review the appraisal.

Lenders are also able to use VA recognized automated underwriting systems, such as Loan Prospector and Desktop Underwriter, to facilitate the underwriting process.

FIVE EASY STEPS TO A VA LOAN

1.  Apply for a Certificate of Eligibility (COE).

While several options exist to obtain a COE, we certainly encourage Veterans to receive their COE online at: http://www.ebenefits.va.gov/.  Once at the eBenefits portal, click the My eBenefits tab towards the top, on the left side, which will open a page with several benefit areas.  On the bottom right of the screen is the Housing tab.  You will need login credentials to request a Certificate of Eligibility (COE).  If you already have them, enter your Username and Password, if you need to request login credentials, you can simply click on the “Request/Activate a DoD Self-Service Logon” link which is shown below the area where you logon.

Alternatively, Veterans can obtain their COE by completing VA Form 26-1880, Request for a Certificate of Eligibility, and mailing it, along with proof of military service, to the Eligibility Center (you will find the Eligibility Center’s address on VA Form 26-1880). Also, Veterans who have already begun the loan application process with a lender may request the lender’s assistance obtaining a COE.

2.  Decide on a home to buy and sign a purchase agreement.

3.  Order an appraisal from VA. (Usually this is done by the lender.)

Ordering an appraisal can be done via the Internet using TAS (The Appraisal System). This is a centralized system that allows lenders easy and quick access to order an appraisal.

4.  Apply to a mortgage lender for the loan.

While the appraisal is being done, the lender can be gathering credit and income information. If the lender is authorized by VA to process loans on the automatic basis (and approx. 99 percent of all VA loans are processed this way), the loan can be approved and closed upon receipt of the appraised value determination without waiting for a VA review of the credit application. VA has also approved the use of several automated underwriting systems for lenders to use in connection with VA loans. The two main systems are Loan Prospector and Desktop Underwriter. For loans that must be approved by VA, lenders send the credit package to VA. VA staff will then review it and notify the lender of the decision.

5.  Close the loan and move in.