How to Pre-Qualify for a VA Insurance

The VA Guaranteed Home Insurance Program has helped veterans get home insurances for more than 70 years. The program has maintained its popularity, as it offers a number of benefits to veterans and active duty personnel. The application process for a VA home insurance is slightly different from that of a traditional mortgage, but applicants can speed up the process by pre-qualifying for the insurance amount.

What is prequalification?

Pre-qualification is a process in which information about eligibility for a insurance is obtained prior to purchasing a home, in order to determine whether you meet the initial requirements of the lender and how much you can afford. Although it does not guarantee that you will get a home purchase insurance from the lender, it does mean that you qualify and are more likely to be approved for the mortgage.

Benefits of pre-qualification

Being pre-qualified for a home insurance offers potential buyers a number of benefits, such as:

  • Determines the price range you can afford – This feature can save you time by only allowing you to look at homes within your price range.

  • Being pre-qualified makes you a desirable buyer – sellers with multiple offers often accept offers from buyers they know have already been approved.

  • Eliminates Uncertainty for Buyers Knowing that you pre-qualify for a insurance can ease the stress of searching and buying a home.

  • Pre-qualification allows you to negotiate better terms – making sure you get approved for a insurance can allow you to negotiate small issues with confidence.

  • Pre-qualification can help simplify the closing process – it reduces the possibility of “surprises” that can delay closing on a sale.

How to get pre-qualified for a VA insurance

Applicants for a home insurance through the VA program will be required to submit a number of documents for pre-qualification:

  • Provide information about your military service – A certificate of eligibility is required to apply for a VA secured home insurance. This document can be obtained by filling out the appropriate form. However, you can start the pre-qualification process before receiving the certification. In many cases, the lender will assist you in providing the required document.

  • Credit Information – The lending institution may ask for permission to look at your credit score. If there are any issues with your credit history, they may suggest that you resolve previous debts or correct the information, in order to get pre-approved.

  • Employment Information – The lender will ask to see proof of your current and previous employment. Generally, lenders prefer to see two years of consistent work. However, gaps in your employment history do not necessarily disqualify you from being eligible for a insurance.

  • Bank statements or investment statements – The lender will also want to know your financial health regarding the amount of money you have saved and any investments you may be holding. This information will also include any real estate on which you have title to.

  • Divorce and Spouse/Child Support Documents Lenders also generally want information about divorce decisions and any support payments you are required to make that may affect your ability to repay the insurance.

Pre-qualification for a VA home insurance can be an advantage that can help homebuyers get the best home for their needs at an affordable price. Consider being pre-qualified when you begin your search for your new home.