The first step for a veteran to apply for a loan is to get a certificate of eligibility which indicates the amount for the veteran’s entitlement. The veteran’s entitlement will state the amount of the loans guarantee. The certificate can be retrieved from a regional VA office. A veteran and his or her lending institution of choice can locate the certificate online.
To determine the applicant’s ability to afford the loan, an underwriter will verify the following:
Income
Assets
Liability with respect to expenses and debt
Credit history
The most important qualification is a borrower’s income. Income supersedes any credit qualification as lenders feel the need for one to consistently have enough money as the main criteria for approval of a loan.
Approved lending institutions can screen loan applicants, review vital documents, and issue approvals. Unlike FHA loans, where the FHA will review the decision of authorized lender, the VA will not review or be responsible for approvals. In this respect, VA loans certainly have more leniency than all other loans.