Let’s roger up with all Veterans out there talk about the top three VA loan mistakes Veterans make and, most importantly, how to avoid these.
Mistake #1: Not Having Your DD 214 (Certificate of Release or Discharge from Active Duty)
Often, Veterans will get under contract, get ready to buy a house and not have a copy of their DD 214. Your discharge paperwork and the reason why that form is so important is that it’s required on every single VA loan.
If you don’t have it, you’ll have to go to archives.gov and request a copy of it there, which could take two weeks, three weeks or even a month to get and could make your close of escrow delayed and cost you money. We want to avoid that mistake, so make sure that you get a copy of your DD 214 up front and deliver that to your mortgage lender.
There are actually 3 ways to get your DD 214:
- Free DD 214 Record Retrieval, which can take several weeks to several months
- Hire “Someone Else” to apply for your DD 214, which can take several weeks to several months
- Hire a research company to get your DD 214. Quality, speed, reliability, and business-reputation of firms vary. This can happen the same day, the next day, one week or longer.
Click here to get details on each of these methods to get your DD 214.
Mistake #2: Not Having Your Certificate of Eligibility (COE)
A lot of veterans don’t know how to get this form. There are several ways to do this. You can roger up with your mortgage lender, or you can get it from the eBenefits website, or you can even get it from VA.gov.
We recommend that you have it up front because if a Veteran may have had a VA loan in the past, or maybe has one right now, it’s essential for the lender to be able to do that calculation of the remaining entitlement. Your entitlement can impact on your ability to qualify for your VA loan. It’s always better to be safe than sorry, so make sure that you have a certificate of eligibility up front.
Mistake #3: Not Having A Real Estate Agent That Specializes In VA Loans
The third mistake that a lot of Veterans make is looking for homes with a real estate agent that does not specialize in VA loans. This mistake is easy to avoid. Simply roger up with a mortgage originator who specializes in VA loans so that they can set you up for success. Number one, they’ll ensure you have all of the required documentation that you’re going to need. And number two, get you pre-qualified/pre-approved for your upcoming home purchase, so that way when you go out to purchase a home, you’ll have the peace of knowing that you have been pre-qualified/pre-approved and you’re ready to go out there and make it happen.
Here’s a video quickly outlining these top three mistakes:
Source: Jimmy Vercellino