Options

• As a veteran, you may use the VA loan program but are not required to. You may choose to use one of the other many loan programs available to anyone who is not a veteran. VA loans are good for helping veterans buy a home with very little or no down payment. Talk with several mortgage lenders and explain your situation and goals. Obtain several quotes. VA offers a special refinance program only available to veterans who currently have a VA mortgage.
  
  

Determining Eligibility

• Once you decide you want to refinance into another VA loan, you must provide your lender with some documentation. Your DD214 documents your service and discharge from the military. Send this document along with a VA Form 26-1880 to the VA eligibility Center at P.O. Box 20729, Winston-Salem, NC 27120. They review your documentation and issue a Certificate of Eligibility for each person eligible for a VA loan.
  
  

Lender-Required Documentation

• The lender requires proof of your income, assets, expenses and eligibility. Your lender likely will request pay stubs, W-2s or tax returns depending on what type of income you have. VA loans qualify differently than most other loan programs. The loan program requires a certain amount of disposable income based on family size to remain after all expenses are paid. If you have children in daycare, you may have to document their daycare costs along with household electric and water bills. The lender obtains a credit report and reviews it for credit worthiness.
  
  

Home Appraisal

• The lender orders an appraisal of the home to determine its estimated value. The appraisal is compared to the loan amount to ensure the property's value can support the requested loan amount. The appraiser researches sold homes in the subject's area and compares them to the subject home. Using these homes as a base and making adjustments for specific differences, the appraiser estimates the home's value.
  
  

Loan Approval

• Once the loan's documentation has been approved and eligibility is confirmed, the lender approves the loan. Once the lender approves the loan, it is scheduled to close and the title company executes the closing. The title company returns the signed documents to the lender and the refinanced loan is funded after the mandatory three-day right of recession is observed.