The VA Loan Process From Eligibility to Closing Day
The VA loan process works best when you lock in financing before calling a real estate agent.
Buyers who call an agent first can lose a home to a better-prepared buyer who moves faster, or they can run into a cost nobody mentioned until the closing table.
Each stage of the VA loan process gives you the information you need for the next.
Your certificate of eligibility opens the door to lender quotes, your lender quotes lead to preapproval, and your preapproval puts you in a strong position to write an offer.
Below is the VA loan process step by step, from eligibility to closing day, along with the places veterans usually get tripped up.
💸 Why Financing Comes First
Having financing in place lets you move quickly when the right home comes up, before another buyer beats you to it.
Financing first also protects you from surprise costs, because comparing lenders before you choose a house gives you time to review fees and ask questions.
The financing stage of the VA loan process includes three steps:
- Get your certificate of eligibility.
- Compare at least two lenders.
- Get preapproved in writing.
Get Your Certificate of Eligibility
Your certificate of eligibility, or COE, proves you can use the VA home loan benefit.
Think of it as your ticket to the counter, since you need it before anyone starts talking numbers.
You can request your COE yourself through the VA’s online portal, or a lender can pull it for you.
Getting it is the official starting point of the VA loan process.
Compare at Least Two Lenders
Lenders don’t have to charge the same fees, so two lenders can quote completely different costs for the same VA loan.
Many surprises at the closing table trace back to buyers who talked to only one lender, usually the first one they called.
VA guidance names an origination fee of roughly 1% as typical, and part of that fee may be negotiable when you ask what it covers.
Shop lenders before you get attached to a house, while you still have time to compare quotes side by side.
When you compare lenders, ask each one about:
- The origination fee and what it covers
- Every other lender fee and what each one pays for
- Which fees, if any, are negotiable
- The rate-lock terms they offer
📝 Get Preapproved in Writing
After you compare lenders, get a written preapproval with the one you choose.
A written preapproval shows sellers your financing is ready and gives you a clear starting point for your home search.
Written preapproval completes the financing stage of the VA loan process and tells you it is time to bring in an agent.
Choose Your Agent
Meet with a couple of agents before you sign anything, and ask each one how they approach offers for VA buyers.
Read every agent agreement closely before you commit.
Some agreements lock you in longer than most buyers expect, so ask about any term you do not understand before you sign.
Your agent helps you write the offer, the next step in the VA loan process, and where your contract protections come in.
🛡️Protect Your Offer With the VA Escape Clause
Include the VA escape clause in your purchase agreement when you write your offer.
It gives you a built-in exit that lets you walk away with your earnest money intact if the home does not appraise at the price you agreed to pay.
Say you agree to pay $380,000 for a house, and the appraisal comes back at $365,000, leaving a $15,000 gap between the contract price and the appraised value.
Without the escape clause, you either cover the $15,000 in cash or walk away and lose your deposit.
With the escape clause in your contract, you have four options:
- Request a reconsideration of value using stronger comparable sales.
- Renegotiate the purchase price with the seller.
- Cover the gap yourself with your own funds.
- Walk away with your earnest money intact.
If you plan to cover the gap yourself, the money must come from your own funds.
A gift from a family member cannot cover an appraisal gap.
Once you are under contract, confirm the written agreement includes the escape clause and any inspection contingency you want.
Checking early keeps you from discovering the protection is missing after a low appraisal.
Schedule Your Own Inspection
The VA appraisal does not replace a home inspection, so schedule your own inspection separately once you are under contract.
The VA sends its own appraiser to the property, who checks the home against VA minimum property requirements and provides an opinion of value.
Your inspector checks the home’s condition for your own benefit, so the two reports answer different questions about the same house.
🏡 Appraisal and Underwriting
The appraisal and the paperwork that follows are where you finally see real numbers.
Once your appraisal clears, your lender’s underwriter finishes reviewing your file.
If the appraisal comes in low, this is when your escape-clause options apply.
When underwriting wraps up, your lender sends you the closing disclosure, the next major document in the VA loan process.
Review Your Closing Disclosure
The closing disclosure is a federally required form that locks in:
- Your loan amount
- Your interest rate
- Your monthly payment
- Every fee attached to the loan
By law, your lender must give you the closing disclosure at least three business days before closing, which gives you time to review the real numbers before you pick up a pen.
Compare the closing disclosure against your original loan estimate, and flag anything that moved.
Fixing a problem three days before closing is far easier than fixing it after you sign.
Your early lender comparison pays off at this stage of the VA loan process because you know what each fee covers and can spot a charge that doesn’t belong.
Rushing through a signature you’ve waited months for is how people miss a fee that shouldn’t be there.” — Wade Betz, Winning With Wade | Mortgage Education and Strategy
🔍 What Happens on Closing Day
By the time you reach the closing table, you and your lender have settled every number, and your signature makes it official.
This final appointment is shorter than the rest of the VA loan process feels.
You sign at a title company, an escrow office, or an attorney’s office, depending on where you buy.
Your agent usually attends, and your lender’s closing team sometimes joins as well.
On closing day, make sure you:
- Bring a valid photo ID.
- Read every document before you sign it.
- Ask about any fee or figure that does not match your closing disclosure.
- Take your time with each signature, even after months of waiting.
Never trust wiring instructions that arrive by email.
Wire fraud is a big problem in real estate, so confirm any funds you wire directly with the title company ahead of time using a telephone number you know is correct.
Once you sign, the house is yours.
Keep the Order on Your Side
Following the VA loan process in order keeps you in control from your first lender call to your final signature.
Confirm eligibility and compare lenders before you shop, get preapproved before you make an offer, and read every agreement before you sign it.
The best time to know where you stand is early, before you talk to an agent or write an offer, while every option is still on the table.
✅ VA Loan Process Checklist
- Request your certificate of eligibility through the VA’s portal or through a lender.
- Compare at least two lenders on fees and rate-lock terms.
- Ask what each fee covers and whether any part is negotiable.
- Get preapproved in writing before you contact an agent.
- Meet with a couple of agents and read every agreement before you sign.
- Confirm the VA escape clause and any inspection contingency appear in your purchase agreement.
- Schedule your own home inspection separately from the VA appraisal.
- Compare your closing disclosure against your loan estimate and flag anything that moved.
- Confirm wiring instructions with the title company by phone using a known number.
- Bring a valid photo ID to closing and read every document before you sign.
Frequently Asked Questions (FAQs)
What is the first step in the VA loan process?
The first step is getting your certificate of eligibility, which proves you can use the VA home loan benefit. You can request it through the VA’s online portal, or a lender can pull it for you.
Should I talk to a lender or an agent first in the VA loan process?
Talk to a lender first, so your financing is in place before you start shopping. A written preapproval helps you move quickly when you find the right home and keeps surprise costs from showing up at closing.
Do all VA lenders charge the same fees?
Lenders do not have to charge the same fees, so two quotes on the same VA loan can look very different. Compare at least two lenders on fees and rate-lock terms, and ask what each fee covers.
What happens if a VA appraisal comes in low?
If your contract includes the VA escape clause, you can request a reconsideration of value, renegotiate the price, cover the gap yourself, or walk away with your earnest money intact. Without the clause, you either cover the gap in cash or risk losing your deposit.
Can gift funds cover a low appraisal gap?
The money to cover an appraisal gap must come from your own funds. A gift from a family member cannot cover the difference.
Is a VA appraisal the same as a home inspection?
The VA appraisal checks the home against VA minimum property requirements and gives an opinion of value. A home inspection checks the home’s condition for your benefit, so schedule one separately.
When do I receive my closing disclosure in the VA loan process?
Your lender must give you the closing disclosure at least three business days before closing. Use that time to compare it against your loan estimate and flag anything that changed.
How do I protect my closing funds from wire fraud?
Never trust wiring instructions that arrive by email. Call the title company at a phone number you know is correct and confirm the details before you send any funds.
Wade Betz
Wade has been a stalwart in the mortgage industry since 2006, dedicating himself to helping thousands of families navigate the complexities of home financing. With so much experience, he stands out as a leading mortgage originator in the Dallas-Fort Worth area.
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