When you are looking at the prospect of securing a VA-guaranteed loan, it may be helpful for you to break down this process into four distinct steps. Each one represents a different point in your progress along with necessary elements that carry you forward to the next step.

First, you need a contract to purchase. At this point, the veteran should find a home and discuss the purchase of the property with the seller or associated agent. Then he will sign the purchase contract once a VA loan has been approved.

Second, you should fill out a loan application. The borrower must choose a lender, present a Certificate of Eligibility, and fill out a loan application. Then the lender will process the credit information and contact the VA about assigning an appraiser to find out the reasonable value of the home.

Third, a decision must be made about the loan. Once a value has been accepted by everyone involved, the lender qualifies the borrower and the loan can be approved. It is the lender’s responsibility to make this decision.

Fourth, the loan is closed. Now, the veteran can deal with the closing of the loan. At this point, the mortgage and not should be signed, as well as any other finalizing paperwork. All of the terms and conditions of the loan including payment schedule will be outlined by the lender or closing attorney.