When to Get Qualified

When to Speak to a Mortgage Professional

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It is important to bring in your mortgage loan professional early — even before you've started to consider neighborhoods. What for? It might be difficult to fathom the ways in which we can help even before you start to negotiate.

We Will Help You Pre-Qualify

We will help you see how much of a mortgage you can afford, and the amount of money you may be able to borrow, by walking you through pre-qualifying. We accomplish this by considering your income and debts, your employment and housing circumstances, your funds available for down payment, required reserves, and some other things. It's quick and basic; We keep the paperwork to a minimum.


We'll give you a Pre-Qualification Letter once you qualify, that says that we're confident you will qualify for a specific amount of mortgage dollars.


Power in the Pre-Qual

Once you find a house that is right for you, and you decide to put together an offer, being pre-qualified for a loan will do several things. First, you have some general numbers in mind, as the amount you can borrow. More important to the current home owner, your pre-qualification is like your having walked into their front door with a suitcase full of money ready to make the deal! They need not wonder if that they are wasting their time if you do not be able to qualify for a big enough mortgage. The seller of the home won't wonder if he can count on you to qualify for your loan. Your qualifying for the necessary loan amount will not cause them concern. You have the capability to back up your offer.

We will help you Pre-Qualify

When we pre-qualify you, we help you figure out the amount you can afford in monthly payments you can fit in your budget, and the loan amount you can qualify for. This process takes you through your financial situation - your debt, income, employment, down payment money, among other things. It's a short, thorough process with minimal risks for papercuts.


One-on-One

It's important for you to sit down and meet with us, even though you are free to also try the helpful mortgage calculators on our site. That way, we will help you get your pre-qualification letter. Then, we will make sure we have selected the ideal mortgage loan program for your situation.

Are you
pre-qualified or pre-approved for a loan?

Before you begin to shop for a new home, you should set up a time to meet with me so we can figure out how much you can afford. This will put you in a better position as a buyer. That’s when it is important to understand the distinction between being pre-qualified for a loan and pre-approved for a loan. The difference between the two terms will be crucial when you decide to make an offer on a house.

Pre-Qualified

To get pre-qualified for a loan, I will collect information about your debt, income, and assets. We’ll look at your credit profile and assess goals for a down payment and get an idea of different loan programs that would work for you. I will issue you a pre-qualification letter indicating the amount you are pre-qualified to borrow.


It is important to understand that a pre-qualification letter is just an estimate of what you are eligible to borrow, not a commitment to lend. Getting pre-approved for a loan gives you competitive advantage when the time comes to bid on a home because you have been approved for a loan for a specified amount.

Pre-Approved

To get pre-approved, you will complete a mortgage application and provide me with various information verifying your employment, assets and financial status such as W-2 forms, bank records and credit card statements. We’ll review your mortgage options and submit your application to the lender that best meets your needs. Once the application process is complete you will receive a pre-approval letter indicating the amount your lender is willing to lend you for your home.


A pre-approval letter is not binding on the lender; it is subject to an appraisal of the home you wish to purchase and certain other conditions. If your financial situation changes (e.g. you lose your job), interest rates rise or a specified expiration date passes, your lender must review your situation and recalculate your mortgage amount accordingly.

Documents Needed for Pre-Approval

  1. Paycheck Stubs for the most recent 30 days.
  2. Bank Statements for all bank accounts for the past 60 days. Statements must include your full name and full account number. Send all pages even if some are blank or contain advertising.
  3. Most recent statements from all asset accounts (IRA, 401K, etc.).
  4. W-2's for the past 2 years for all borrowers, for all jobs.
  5. Pension Award letter (if applicable).
  6. Social Security Award letter (if applicable).
  7. Service Connected Disability Income Award letter (if applicable).
  8. Copy of DD-214
  9. Copy of driver's licenses for all borrowers. (Please set copier on "light" and enlarge the image so date of birth can be easily read and photo recognizable).
  10. Copy of current mortgage statement (if refinancing)
  11. Copy of your mortgage NOTE (if refinancing) (You received this when you closed on your current loan).
  12. Copy of divorce decree (if child support is paid or counted toward income).
  13. Federal tax returns, all pages and schedules.

VA Loan Pre-Loan Frequently Asked Questions

General Questions About VA Loans That May Arise BEFORE You Get One

  • Q: What is a VA Guaranteed Home Loan?

    A: VA guaranteed loans are made by private lenders, such as banks, savings & loans, or mortgage companies to eligible veterans for the purchase of a home which must be for their own personal occupancy. The guaranty means the lender is protected against loss if you or a later owner fail to repay the loan. The guaranty replaces the protection the lender normally receives by requiring a down payment allowing you to obtain favorable financing terms.

  • Q: Does my entitlement guarantee that I will get a home loan?

    A: No, VA cannot compel a lender to make a loan that would violate their lender policies. Lenders must also comply with VA income and credit standards. If a lender is unwilling to make a loan to you, we can only suggest that you try other lenders.

  • Q: How much is my entitlement?

    A: Your basic entitlement is $36,000. For loans in excess of $144,000 to purchase or construct a home, additional entitlement up to an amount equal to 25 percent of the Freddie Mac conforming loan limit for a single-family home may be available. This loan limit can change yearly. The conforming loan limit for 2008 is $417,000 ($625,500 for Hawaii, Alaska, Guam, and the U.S. Virgin Islands). This means that qualified veterans could get a no-down payment purchase loan for those amounts.

  • Q: How do I get a Certificate of Eligibility?

    A:  VALoansMN can establish eligibility and issue an online Certificate of Eligibility in a matter of seconds.  However, if the VA has insufficient data in their records, and your Certificate of Eligibility cannot be issued online, go to our Home page and click on "Request Certificate of Eligibility".

  • Q: How do I obtain a VA Home Loan?

    A: Here are the steps:


    • Select a home and discuss the purchase with VALoansMN.
    • Sign a purchase contract conditioned on approval of your VA home loan.
    • VALoansMN will collect all credit and income information. We will also request the VA to assign a licensed appraiser to determine the reasonable value for the property. A Certificate of Reasonable Value will be issued. Note: You may be required to pay for the credit report and appraisal unless the seller agrees to pay.
    • We will let you know the decision on the loan. You should be approved if the established value and your credit and income are acceptable.
    • You (and spouse, if applicable) attend the loan closing. The closing agent will explain the loan terms and requirements as well as where and how to make the monthly payments. Sign the note, mortgage, and other related papers.
    • The loan is sent to VA for guaranty. Your Certificate of Eligibility is annotated to reflect the use of entitlement and returned to you.
  • Q: What are the benefits of a VA home loan?

    A: There are many benefits of a VA Home loan:


    • Equal opportunity.
    • No down payment (unless required by the lender or the purchase price is more than the reasonable value of the property).
    • Buyer informed of reasonable value.
    • Ability to finance the VA funding fee (plus reduced funding fees with a down payment of at least 5% and exemption for veterans receiving VA compensation).
    • Closing costs are comparable with other financing types (and may be lower).
    • No mortgage insurance premiums.
    • An assumable mortgage.
    • Right to prepay without penalty.
    • For homes inspected by VA during construction, a warranty from the builder and assistance from VA to obtain the cooperation of the builder.
    • VA assistance to veteran borrowers in default due to temporary financial difficulty.
  • Q: What can VA not do?

    A: Guarantee that a home is free of defects. VA guarantees only the loan. It is your responsibility to ensure that you are satisfied with the property being purchased. The VA appraisal is not intended to be an "inspection" of the property. You should seek expert advice (a qualified residential inspection service), as necessary, BEFORE legally committing to a purchase agreement.


    If you have a home built, VA cannot compel the builder to correct construction defects although VA does have the authority to suspend a builder from further participation in the home loan program.


    VA cannot guarantee that you are making a good investment. VA cannot provide you with legal services.

  • Q: Is a guaranteed loan a gift?

    A: No, it must be repaid, just as you must repay any money you borrow. If you fail to make the payments you agreed to make, you may lose your home through foreclosure.

  • Q: Can I get a loan for a home outside of the United States?

    A: Unfortunately, the law only allows VA to guarantee loans on property in the United States, its territories, or possessions.

  • Q: Can I get a VA loan if I have had a bankruptcy in the last few years?

    A: The fact you and/or your spouse have been adjudicated bankrupt does not in itself disqualify you for a VA home loan. The following rules apply:


    • If the bankruptcy was discharged more than 2 years ago, it may be disregarded
    • If the bankruptcy was discharged within the last 1 to 2 years, it is probably not possible to determine that you and/or your spouse are a satisfactory credit risk unless both of the following requirements are met:
    1. you and/or your spouse have reestablished satisfactory credit, and
    2. the bankruptcy was caused by circumstances beyond your and/or your spouse's control (such as unemployment, medical bills, etc.)
    • If the bankruptcy was discharged within the past 12 months, it will not generally be possible to determine that you and/or your spouse are satisfactory credit risks.
    • Please do not assume that you cannot get a loan if you have experienced bankruptcy.  We will do all that we can to help you get a loan.
  • Q: Why do I have to pay a fee for a VA home loan? Since I paid a fee for my first loan, why is there a larger fee for my second loan?

    A: The VA funding fee is required by law. The fee is intended to enable the veteran who obtains a VA home loan to contribute toward the cost of this benefit, and thereby reduce the cost to taxpayers. The funding fee for second-time users who do not make a down payment is slightly higher. The idea of a higher fee for second-time use is based on the fact that these veterans have already had a chance to use the benefit once, and also that prior users have had time to accumulate equity or save money towards a down payment. Second-time users who make a down payment of at least 5 percent pay a reduced funding fee of 1.5 percent, the same as first-time users making the same down payment. For a 10 percent down payment, the fee drops to 1.25 percent. The effect of the funding fee on a veteran's financial situation is minimized since the fee may be financed in the loan. National Guard and Reservist veterans pay a slightly higher funding fee percentage.

  • Q: I want to buy a house with a VA loan. Do I need to occupy the property?

    A: The law requires that you certify that you intend to occupy the property as your home. This requirement is considered satisfied if you actually intend to occupy the property as your home and in fact so occupy it when the loan is closed or within a reasonable time afterward.

  • Q: I am a single veteran stationed overseas and want to buy a home in my home town. My friends who are married can do this with their spouses occupying the property in their place, but VA says I can't do this with my parents or other relatives occupying on my behalf. Isn't this discrimination against single veterans?

    A: The law specifically provides that occupancy by the veteran's spouse satisfies the personal occupancy requirement. The law makes no provision for occupancy by any other relatives as a substitute for personal occupancy by the veteran.

  • Q: May a veteran join with a non veteran who is not his or her spouse in obtaining a VA loan?

    A: Yes, but the guaranty is based only on the veteran's portion of the loan. The guaranty cannot cover the nonveteran's part of the loan. Consult lenders to determine whether they would be willing to accept applications for joint loans of this type. Lenders that are willing to make these types of loans will likely require a down payment to cover risk on the unguaranteed, nonveteran portion of the loan. Unlike other loans, the lender must submit joint loans to VA for approval before they are made.


    Both incomes can be used to qualify for the loan. However, the veteran's income must be sufficient to repay at least that portion of the loan related to the veteran's interest in (a portion of) the property, and the nonveteran's income must be adequate to cover the rest.

  • Q: If a veteran dies before the loan is paid off, will the VA guaranty pay off the balance of the loan?

    A: No. The surviving spouse or other co-borrower must continue to make the payments. If there is no CO-borrower, the loan becomes the obligation of the veteran's estate. Mortgage life insurance is available but must be purchased from private insurance sources.

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