When it comes to buying a home, the VA Home Loan program offers numerous advantages compared to other types of mortgages. One of the best known advantages of a VA Home Loan is that qualified borrowers can apply for a VA loan with no money down. However, the other benefits of the VA Home Loan program may not be as widely known. One of those lesser-known advantages is the ability for borrowers to apply for pre-approval prior to selecting a home, which can save time and reduce headaches associated with the home-buying process.

A pre-approval is a process in which you submit an application to a lender and the lender reviews your financial files, including credit score and debt-to-income ratio. Once the review is complete, you’ll be provided with a letter of pre-approval. This document provides proof that you’ve established that you meet the income and credit requirements to qualify for a performed loan amount, which gives you a strong negotiating position during the home-buying process. It also saves you time by allowing you to shop for a home with confidence as you have a lender that is willing to finance your purchase.

Applying for a VA Home Loan pre-approval also gives potential buyers a competitive edge in a competitive housing market. Since the lender has already reviewed your financial information, there is less paperwork to complete at the time of the contract. This can expedite the loan process, and put you far ahead of potential buyers who have not yet completed the pre-approval process. Additionally, real estate agents are often interested in partnering with buyers who come to the table with pre-approval. This is because real estate agents may be able to close a deal more quickly when the buyer has already taken the steps in the mortgage process.

Also, getting pre-approved for a VA Home Loan can provide applicants valuable feedback on their credit score and other financial parameters. While the lender is working to ensure the borrower meets the criteria set for the loan, he or she can also provide advice as to how to improve the credit score or reduce the debt-to-income ratio. This can provide applicants with the guidance they need to take the necessary steps to secure loan approval and become equipped to handle the responsibilities that come along with homeownership.

Ultimately, pre-approving for a VA Home Loan provides numerous advantages when buying a home. It gives borrowers the proof they need that their financial information has been approved, which often provides a negotiating edge when working with real estate agents. It saves valuable time and makes the home-buying process much easier for those looking to financing their purchase with a VA Home loan.