How to Prepare for a VA Loan

1. Get Your Certificate of Eligibility (COE)

The COE is the most important document in this process. It proves to lenders that you meet the military service requirements for a VA loan.

• •Through your lender: Most approved lenders can pull your COE instantly through the VA’s automated system.
• •Online: Log into your eBenefits portal on VA.gov.
• •By mail: Submit VA Form 26-1880 (takes longer).

2. Check Your Credit and Finances

While the VA doesn’t require a minimum credit score, private lenders who issue the loans usually look for a score of at least 620 (though some go lower).

• •Pull your free credit report from AnnualCreditReport.com and check for errors.
• •Don’t open new credit cards or take out auto loans before buying a home.
• •Calculate your Debt-to-Income (DTI) ratio. Lenders prefer your monthly debts to be under 41% of your gross monthly income.

3. Understand the Costs

“Zero down” does not mean “zero cost.” You still need to be prepared for some upfront expenses:

• VA Funding Fee A one-time fee (1.25% to 3.3%) paid to the VA. It can be rolled into the loan. Waived if you receive VA disability compensation.
• Closing Costs Expect to pay 1% to 5% of the loan amount for appraisal, title, and origination fees. Sellers can sometimes pay these.

Use our Cash-to-Close calculator to estimate what you’ll need.

4. Gather Your Documents

Lenders will need a complete picture of your financial life. Gather these early:

• •W-2 statements (last 2 years)
• •Pay stubs (last 30 days)
• •Bank statements (last 2 months)
• •Tax returns (last 2 years)
• •DD-214 (for veterans)
• •Statement of Service (active duty)