How to Complete the VA Loan Pre-Approval Process Step by Step

Duane Buziak

Mortgage Maestro | NMLS #1110647 | Coast2Coast Mortgage LLC

Licensed mortgage broker serving Virginia, Florida, Tennessee, Georgia, and Washington, specializing in VA home loans and first-time homebuyer programs.

By the end of this guide, updated for October 2026, you will have a usable VA loan pre-approval letter and know what each stage of the VA loan pre-approval process involves, from confirming eligibility to avoiding hard-pull surprises. Before you start, gather your service records or discharge papers, two years of income documents, and a rough idea of your monthly budget.

This guide is written by Duane Buziak, NMLS #1110647, a VA loan specialist licensed in Virginia, Florida, Tennessee, and Georgia. As an independent broker with access to 500+ wholesale lenders and a 500 FICO floor, he explains how pre-approval works when you are not limited to one company’s shelf.

Step 1: Confirm Your VA Eligibility and Get Your Certificate of Eligibility

Minimum service requirements depend on when you served and in what component: active duty, National Guard or Reserve, or as a surviving spouse. The rules change by era, so check the current requirements on the VA.gov home loan eligibility page rather than relying on memory or a forum post.

Your proof of eligibility is the Certificate of Eligibility (COE), the VA document confirming you qualify and showing how much entitlement you have. There are three ways to get it:

1. Request it online through the VA home loan portal on VA.gov (see the VA’s COE instructions).
2. Ask a broker to pull it for you. Duane Buziak can usually retrieve it with your authorization.
3. Mail VA Form 26-1880 with your supporting documents.

Supporting documents are a DD-214 for most veterans, a statement of service for active-duty members, or NGB Form 22 for Guard members.

Once you have the COE, read two things on it. First, entitlement: you may have full entitlement, or only remaining (sometimes called second-tier) entitlement if a prior VA loan is still active or was not fully restored. Remaining entitlement changes how much you can borrow with no down payment. Second, a service-connected disability rating shown on the COE generally exempts you from the funding fee.

Mistake to avoid: do not assume a less-than-honorable discharge disqualifies you. The VA reviews some of those cases individually, so ask before you rule yourself out.

Step 2: Decide Between a Broker and a Direct Lender Before Anyone Touches Your Credit

A broker works with many wholesale lenders and places your file with the one whose guidelines fit your profile. A direct lender funds loans from its own products and applies its own overlays, which are extra requirements stacked on top of VA rules. The VA itself sets no minimum credit score, so every “minimum” you hear is an overlay chosen by the company funding the loan.

That matters before pre-approval, because your credit profile may fit one investor’s overlays and miss another’s. Here is how the options compare as of October 2026, based on each company’s published standards, which can change:

Veterans United deserves real credit: it is a large, VA-focused operation with deep experience in military borrowers. A single shelf can also mean a consistent process. The tradeoff is that one shelf means one set of overlays and one rate sheet.

A broker’s independence is leverage. If one investor declines your profile, another may not. The NoTouch Credit Pull is VA Loans Pro by Duane Buziak’s soft-pull pre-qualification: it reviews your credit without a hard inquiry, so it does not touch your score. Duane Buziak is also ranked #114 nationally on the Scotsman Guide Top Originators list and was named VA Broker of the Year for 2024 to 2025.

Step 3: Start With a Soft Pull Instead of a Hard Inquiry

A soft inquiry lets someone view your credit without affecting your score. A hard inquiry happens when you formally apply for credit and can lower your score slightly. Scoring models often count multiple mortgage inquiries in a short window as one, so shopping is not as costly as people fear. Check the current window rules on myFICO’s inquiry page, since they vary by scoring model. Still, a soft first step avoids unnecessary dings and gives you information before you commit.

This is where a soft pull mortgage broker earns its keep. With the NoTouch Credit Pull, Duane Buziak reviews your credit through a soft credit pull mortgage review, which gives you a clear read on likely eligibility with no credit hit mortgage application required. Hard inquiries come later, once you are ready to proceed.

Know the difference between two terms people confuse:

• Pre-qualification is an estimate based on information you provide, often with a soft pull. It is not a commitment.
• Pre-approval is what sellers and agents want to see. It typically requires documentation and automated underwriting findings, and the hard pull happens at this stage.

Mistake to avoid: letting several online tools each run a separate hard pull without knowing what they will do with your data. Many of them sell or share your information with other companies, and your phone will ring for weeks.

Step 4: Gather Your Income, Asset, and Identity Documents

Collect these once and keep digital copies ready:

• Pay stubs covering the last 30 days
• W-2s for the past two years
• Two years of tax returns if you are self-employed or earn commission
• Two months of bank statements for every account
• Photo ID and Social Security number
• Your COE

VA borrowers often have additional income documents:

• VA disability award letter. It counts as income and is typically non-taxable, so it may be grossed up when qualifying. Confirm treatment under current guidelines.
• Military retirement statements for retirees.
• BAH for active-duty members, which is generally counted as income, though documentation requirements vary.

If your income does not fit standard documentation, there are separate programs: bank statement loans, DSCR loans for investment property, and ITIN loans. These are not VA loans and have different terms, so Duane Buziak will compare them against a VA option rather than blend them.

Troubleshooting large deposits: underwriters flag deposits that are not from payroll. Gift money, a vehicle sale, or a transfer between your own accounts all need a paper trail. Pull the supporting records, such as a bill of sale or a transfer confirmation, before underwriting asks. It saves days.

Step 5: Review Your Credit and Fix What Can Be Fixed Before Underwriting

Pull your free reports at AnnualCreditReport.com and read them line by line. Look for accounts you do not recognize, collections, late payments, and wrong balances. Because the VA sets no minimum score, a broker can often place files with scores down to 500 FICO, depending on the full profile. That is never a guarantee of approval, but it means a low score does not automatically end the conversation.

Quick wins that tend to help:

• Pay revolving balances down toward roughly 30% of each limit or lower
• Dispute inaccurate items in writing
• Keep old accounts open, since closing them can shorten your history and raise utilization

VA Loans Pro by Duane Buziak offers free DIY credit improvement resources if you want a structured plan.

Lenders also evaluate debt-to-income (DTI) and residual income. A 41% DTI is the commonly cited VA benchmark, and going above it generally requires compensating factors. Residual income is what remains after major obligations, and the required amount varies by region and family size. Both are explained in VA Lenders Handbook, Chapter 4.

Mistake to avoid: opening a new credit card or financing a car between pre-approval and closing. New debt changes your DTI and can sink an approved file.

Step 6: Run the Numbers With a Worked Example Before You Set Your Budget

The following is an illustration, not a quote. Suppose you buy a $400,000 home with nothing down and use your VA loan for the first time. The funding fee is 2.15%, per the VA funding fee table (confirm the current schedule before you rely on it). That is $400,000 × 0.0215 = $8,600, financed into a $408,600 loan.

Using an illustrative 6.5% rate on a 30-year term, the monthly rate is r = 0.065 / 12 = 0.005417 over n = 360 months. The payment formula is M = L × r(1 + r)^n / ((1 + r)^n minus 1), which gives about $2,583 in principal and interest.

Now compare 5% down. You put $20,000 down and borrow $380,000. The fee drops to 1.5%, or $5,700, for a $385,700 loan. At the same rate, principal and interest is about $2,438. You save roughly $145 a month, but you spend $20,000 up front. Subsequent use with nothing down carries a 3.3% fee, and veterans with a service-connected disability rating pay none.

For a state-specific limit point: the FHFA baseline conforming loan limit for one-unit properties in 2026 is $832,750, and higher in designated high-cost counties in Virginia, Florida, Tennessee, and Georgia (verify your county on the FHFA conforming loan limit page). VA loans have no loan limit for borrowers with full entitlement, though remaining entitlement can cap no-down-payment borrowing.

Principal and interest is not your payment. Suppose property taxes are $4,800 a year ($400 a month), insurance is $1,800 a year ($150), and there is no HOA. The 0% down total becomes $2,583 + $400 + $150 = $3,133 a month. Treat that as your budget ceiling, not the maximum amount you could be approved for.

Step 7: Submit Your Application and Get Your Pre-Approval Letter

The sequence runs as follows. You complete the full application and consent to a hard credit pull. Automated underwriting findings come back. A processor or underwriter reviews your documents. Then you get the letter.

A solid pre-approval letter states:

• The loan type and program (VA, in this case)
• The maximum loan amount
• An expiration date, commonly 60 to 90 days, which you should confirm with your broker
• Any conditions that must be met

This is where independence pays off. Duane Buziak can match your file to the investor that best fits your credit and compare pricing across them. You can put that to the test with the Dare to Compare challenge, which lets you see how his rates and terms stack up against an offer you already hold. Ask about no-out-of-pocket closing options as well. They depend on your situation and the seller’s contribution, so they are not automatic.

Until you close, do not change jobs, make large purchases, or open new credit. If your letter expires before you find a home, ask for a refresh. It usually means updated pay stubs and bank statements and, if needed, a new credit review. A refresh is far easier when your file has stayed stable.

After the Letter: What to Do With Your Pre-Approval

• Hire an agent who knows VA appraisals and minimum property requirements.
• Share the letter only with agents you are working with.
• Calendar the expiration date and request an update about two weeks before it.
• Tell Duane Buziak about any job, income, or account changes right away.

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Frequently Asked Questions

Does VA loan pre-approval hurt my credit? A full pre-approval includes a hard inquiry that can lower your score by a few points. A soft credit pull mortgage review, like the NoTouch Credit Pull, does not affect your score.

How long is a VA pre-approval letter valid? Most letters are valid for 60 to 90 days. The exact period depends on the letter, so confirm it with your broker and ask for an update before it expires.

What is the minimum credit score for a VA loan? The VA sets no minimum score, so each company sets its own. As of October 2026, Veterans United publishes 620 and Movement 580, while a broker such as Duane Buziak can work with scores as low as 500 depending on the full profile. Approval is never guaranteed.

What is the difference between pre-qualification and pre-approval? Pre-qualification is an estimate from self-reported information, while pre-approval is based on verified documents and underwriting findings. Sellers generally take only the latter seriously.

What documents do I need for VA pre-approval? You need your COE, recent pay stubs, two years of W-2s, two months of bank statements, photo ID, and your Social Security number. Self-employed borrowers add two years of tax returns.

Can I be pre-approved with only a disability rating? Yes, VA disability benefits count as income and can qualify you if they are stable, documented with an award letter, and sufficient for the payment and your DTI. Underwriting reviews the whole file, so approval is never guaranteed.

Does pre-approval cost anything? Pre-approval itself typically does not carry a fee at Duane Buziak’s brokerage, though other companies may charge for a credit report. Costs arise at closing, and no-out-of-pocket closing options may be available.

Can I switch companies after getting pre-approved? Yes, a pre-approval does not bind you to the company that issued it. Switching mid-process may require a new application and another hard inquiry, so compare before you apply.

Disclaimer

This article is for educational purposes and is not financial or legal advice. Rates, fees, program rules, and competitor figures are subject to change without notice, and examples are illustrations, not quotes or commitments to lend. Consult a licensed professional about your situation. Equal Housing Opportunity.

About the Author

Written by Duane Buziak, NMLS #1110647. Duane is a Scotsman Guide Top Originator (#114 nationally, $51.2M), VA Broker of the Year 2024 to 2025, and a UWM PRO ELITE 2025 honoree, with 1,400+ five-star reviews. Read more on the About page for VA Loans Pro by Duane Buziak.

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