Many veterans who are looking to qualify for a VA Loan often confuse eligibility and pre-qualification. It is important to keep in mind that not every veteran who is eligible for a VA Loan can secure a loan. Just because you are eligible for a VA Loan does not give a guaranteed approval. There are certain underwriting guidelines that need fulfilling before anyone is pre-qualified for a loan. There is a step that goes a little further than pre-qualification, which is outright pre-approval. When you are pre-approved, you are basically guaranteed that you qualify for one or more VA Loan Programs.
The Difference Between Pre-Qualification and Pre-Approval in Action
Based on the amount of credit information you provide the lender who provides a VA Loan, they are able to pre-qualify you in the form of an estimate that shows how much you can receive from a VA Loan. Eligibility means you meet the initial qualifications for a specific type of VA Loan, but again it is not a guarantee of approval. Pre-approval assures that the bank is ready to offer you some type of VA financing. The financing is often used for a new home purchase or refinance of an existing VA Loan. The difference between each term is quite simple and helps guide you through the VA Loan process.
Using MortgageDepot for your VA Mortgage
If you are struggling with the entire process, then we can help. We have a team of mortgage specialists who work exclusively with VA and FHA loans in the New York State area. We guide you throughout the entire process which requires very little effort on your part. If you want to simplify the process as much as possible, then you certainly need to contact us.