What You Should Know About a VA Loan

As many know, there are multiple types of loans you can take out when purchasing a home. If you are military, there is one extra option for you, which is called a VA loan. These flexible, no-downpayment loans have helped over 20 million military personnel become homeowners since 1944. Let’s take a look at how VA loans work…


Get preapproved: Becoming preapproved is a major part of home buying. Lenders will verify income and financial information to get a sense of what you can afford as a buyer. Once this process is completed, you will receive a preapproval letter, which shows real estate agents and sellers that you are financially able and serious about the offer you are putting in.

Put in an offer: Like any loan, you must first make an offer. Once you find your perfect home, craft an offer and negotiate terms with the seller. It is important to have a realtor that understands VA loans, so do your research!

VA appraisal: Once a contract is in place, a VA appraisal will be ordered on the property. From there, an underwriter will evaluate income, financial documents, and the finalized appraisal. If everything is cleared to close, you may move on to closing.


Until your VA loan is closed and funding, avoid the following:

-Opening new credit accounts

-Making large cash deposits

-Closing credit accounts

-Getting a personal loan

-Letting lenders pull your credit

-Transferring money between accounts

-Co-signing on any loan



  1. No down payment- One of the most valuable aspects of a VA loan is not being required to make a down payment. Down payments can be anywhere from 3% to 20%, which is due at the time of closing. The down payment can be one of the biggest obstacles of buying a home- a VA loan can completely eliminate that.
  2. More lenient loan requirements- The required credit score for a VA loan can ultimately be lower than that of a conventional loan. A VA loan credit score can be around 620, compared to a range of 650 to 700 for other loan types.
  3. Limited closing costs- As mentioned earlier, with no down payment requirement, the closing costs are significantly lower with a VA loan. Legally, veterans are required to pay the following closing costs: Appraisal, credit report, origination fee, title insurance, recording fee, survey.

With any home buying process, it is important to have a realtor you can trust and is knowledgeable. If you are unsure how to proceed with your VA loan, please do not hesitate to contact your Hometown Experts- we are here to help! Give us a call any time at 865-693-SOLD (7653).

Ryan Coleman

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About the Author
Ryan Coleman
Ryan is from Richmond Virginia and attended college here in Knoxville Tennessee. He is married to his beautiful wife April, they have one daughter and one son who reside in Knoxville. Ryan is a highly trained, knowledgeable Real Estate Broker and Investor (owning both Residential Investment & Commercial Real Estate). For over 20 years, Ryan has spent much of his time helping buyers and sellers find their perfect dream home, devoting his personal attention during the entire transaction until and beyond closing.