Some Things You Might Not Know About VA Loans

Military borrowers dub VA loans as the most powerful loan program on the market because of their flexibility and lack of down payment. This lending program has helped more than 24 million service members to purchase or build their own homes. 

VA loans are given by private lenders and are backed or guaranteed by the Department of Veterans Affairs (VA). Once you are approved, you can use the money to buy a primary residence or refinance your existing mortgage. 

How Do VA Loans Work?

This lending program works a bit differently than usual mortgage loans, but the process of acquiring it is pretty similar. Like getting a house mortgage, applying for a VA loan means you need to go through several steps. 

Don’t worry, here’s a quick guide. Keep on reading to learn the five steps to process a VA loan.


Prequalifying your application is the first and most essential step in getting a VA loan. You need to find a VA lender then determine how much you can afford to borrow based on several factors. Your income, credit score, and other financial components will be accounted for to identify the price of the house you can afford. 

Pre Approval 

After pre-qualifying, the lender will verify your income and financial information. This process will let them understand your purchasing power. Once done, you will get a preapproval letter.


Align with your agent because the next step is looking for the best home approved by the VA loan. The agent will then make the offer, and you will negotiate the contract with the seller of the house. Make sure you look for a VA agent that is highly knowledgeable about how VA loans work.

VA Appraisal and Underwriting

The VA requires an appraisal to ensure that the property you are going to buy meets a fair market value and property requirements. This step is also where underwriters will examine your income and other financial documents with the finalized appraisal. 


Lastly, you have to sign all the paperwork and get the legal documents that secures the loan. You finally get to buy the home using the VA loan, get the keys, and move in!

Things VA Borrowers Do Not Know

While VA loans are popular, there are still misconceptions and secrets about them that are unknown to most borrowers.

VA Loans Are Reusable 

The VA entitlement has no limit—you can use it again and again. Of course, you have to pay off the loan every time you avail of it.

VA Loans Are Conditional 

You cannot use the VA loan to get any house you want. The loan is only to get properties like condos, modular housing, and single-family homes.

VA Loans Are Government Guaranteed

It is a common misconception that the Department of Veterans Affairs provides the VA loan, but the truth is it is not. The VA itself is not concerned with issuing home loans. Instead, they back or guarantee it partially, which gives lenders the confidence to offer them to borrowers.

Final Thoughts

Getting a VA loan is truly a blessing for service members that want to own homes as soon as possible. Those who can gain access to this loan shouldn’t miss the opportunity and enjoy its unique offerings. After all, there’s no better feeling than coming home to a house that’s truly yours.

If you are looking for home loans in Sacramento, CA, contact Hawkins Home Loans to get an expert agent to assist you. We offer fixed-rate loans, adjustable-rate loans, FHA loans, and VA loans. Book an appointment today, and let’s talk about the options available for you!