Buying A Home

VA Loan Preapproval: The Military Buyer’s Guide

February 10, 2026
VA Loan Preapproval: The Military Buyer’s Guide

Quick brief: A VA loan preapproval is a lender’s documented review of your eligibility, income, credit, and key numbers—so you can make serious offers with confidence. It’s stronger than a prequalification and essential when you’re buying on a PCS clock.

What VA Loan Preapproval Is (and Isn’t)

Preapproval is a lender-verified green light that confirms you’re qualified up to a certain amount under the VA program. It’s based on documents and a credit check.
Prequalification is an unverified estimate—useful for early budgeting, not for writing competitive offers.

Why preapproval matters for military moves:

  • Stronger offers: Listing agents prefer buyers whose finances are already reviewed.
  • Faster timelines: Crucial for tight report-by dates, HHG delivery, and TLE/TLA windows.
  • Clear budget: Aligns your home search with a realistic monthly payment—before you tour.

VA vs. Conventional at a Glance

  • VA loan (for eligible borrowers): Potential $0 down, no monthly PMI, VA Funding Fee (with exemptions for certain disabled Veterans), VA appraisal + VA Minimum Property Requirements (MPRs).
  • Conventional: Often requires a down payment and PMI under 20% down; property condition standards differ from VA.

If you’re VA-eligible, ask your lender to compare scenarios; property type, appraisal, and your longer-term plans can influence the best path.

The Military-Tuned Preapproval Checklist

Gather and upload through your lender’s secure portal (avoid emailing PII):

1) Identity & Service

  • Government-issued photo ID
  • Certificate of Eligibility (COE) — proves VA entitlement (your lender can often pull this)
  • Active-duty/Guard/Reserve: Current LES or Statement of Service
  • Veterans: DD214 (Member-4)
  • PCS Orders (if applicable) — helps lenders model timing and occupancy

2) Income

  • Last 30–60 days of pay stubs/LES
  • W-2s (typically last 2 years); 1099s if applicable
  • Documentation for other income you plan to use (VA disability, retirement, drill pay, spouse income)

3) Assets & Debts

  • Last 1–2 months of bank statements
  • Statements for reserves (TSP/IRA) if needed
  • List of monthly obligations (auto/student loans, child support, credit cards)

4) Housing History

  • 24 months of addresses
  • Landlord contact or mortgage statements if you own

PPM/DITY note: Reimbursements typically arrive after the move. Don’t count them as funds-to-close unless already deposited and fully documented.

How VA Lenders Evaluate 

  • COE (Certificate of Eligibility): Shows you’re eligible; it’s not an approval.
  • Credit profile: The VA doesn’t set a minimum score, but lenders do.
  • DTI (Debt-to-Income): Monthly debts ÷ gross monthly income. Lower is generally better, but it’s only one factor.
  • Residual Income (RI): Unique to VA—after major expenses, do you have enough cash flow left by region/family size? This safeguard often matters more than DTI.
  • Employment stability: LES and continuity help; spouse employment in the gaining market may be counted (ask about offer-letter requirements).
  • Occupancy: VA loans are for primary residences. You generally intend to occupy within a reasonable time (deployment/PCS nuances exist—discuss early).

Preapproval Timeline 

T–90 to –75 days (or as soon as orders drop):

  • Pick a VA-experienced lender and military-savvy agent.
  • Lender pulls your COE (or guide you to obtain it).
  • Upload docs via secure portal; lender reviews credit and income.

T–75 to –45 days:

  • Receive your preapproval letter (amount, assumptions, expiration).
  • Align price targets using the DTMO BAH calculator (ZIP, paygrade, dependents).
  • Begin house tours (virtual if OCONUS or tight window). Prep for sight-unseen offers with a strong inspection plan.

T–45 to –30 days:

  • Make an offer in your preapproved range.
  • Lender orders the VA appraisal (through VA’s system).
  • You schedule an independent home inspection (different from appraisal).

T–30 to close:

  • Clear loan conditions (updated LES, statements, letters of explanation).
  • Review Closing Disclosure; sign final docs.
  • Coordinate HHG/PPM delivery, TLE/TLA dates, and POV timing with keys-in-hand.

Occupancy reality check: If you’ll arrive after closing due to training or deployment, discuss Power of Attorney (POA) and occupancy plans with your lender and agent up front.

Preapproval Letter: What It Should Show

  • Borrower name(s) and lender contact
  • Loan type: VA
  • Max purchase price/loan amount used for underwriting
  • Key assumptions (estimated taxes/insurance; any down payment)
  • Expiration window (commonly 60–90 days)
  • Notes on property type or occupancy if relevant

Offer tactic: Ask your agent for customized letters for each offer price so you’re not broadcasting your max.

VA Appraisal vs. Home Inspection 

  • VA Appraisal: Confirms value and checks MPRs (safety, soundness, sanitation).
  • Home Inspection: Optional but strongly recommended; evaluates overall condition and maintenance items.
  • Negotiations: Inspection findings can lead to repair requests or credits—coordinate strategy with your agent and lender.

Common Myths—Debunked

  • “Preapproval = guaranteed loan.”
    It’s conditional; final approval depends on the property, your updated docs, and underwriting.
  • “Zero down = zero cash needed.”
    Even with potential $0 down, plan for closing costs, escrows, and inspections. Seller credits can offset some costs—negotiate early.
  • “BAH alone decides my budget.”
    BAH is a planning tool. Lenders evaluate your full profile, including residual income.
  • “Appraisal replaces inspection.”
    Appraisal checks value/eligibility; inspection protects you as a homeowner.

Fast Ways to Strengthen Your File

  • Lower credit utilization (pay down revolving balances before credit is pulled).
  • Paper trail discipline: Source and season large deposits; avoid unexplained transfers.
  • Proactive communication: Orders change, deployment, spouse job start—tell your lender early.
  • Smart rate/loan shopping: Multiple mortgage inquiries within a short window generally count as one for scoring.
  • Property-type planning: VA allows many condos (must be VA-approved) and some manufactured homes; ask about requirements early.

Budgeting with BAH—Without Guessing

  1. Use the official DTMO BAH calculator for your gaining ZIP, paygrade, and dependency status.
  2. Add estimated utilities, commute costs (gate traffic counts, tolls), and a maintenance reserve.
  3. Match your comfort payment to your preapproval range to avoid “payment shock.”

FAQs

Q: How long does a VA preapproval last?
A: Typically 60–90 days; lenders can update with refreshed docs (new LES, statements) if you need more time.

Q: Do I need my COE first?
A: Your lender can often retrieve it. If not, you can request it directly through VA.

Q: Can BAH/BAS count as income?
A: Often yes, with documentation. Policies vary by lender.

Q: What if orders or report date shift?
A: Notify your lender immediately; they may refresh documents and re-verify occupancy plans.

Q: Is there a minimum credit score for VA?
A: The VA doesn’t set a minimum, but lenders do. Stronger profiles tend to move more smoothly.

Your Next Steps

  1. Secure preapproval with a VA-experienced lender.
  2. Set your BAH-based budget and wish list by installation/ZIP.
  3. Tour homes (virtual or in person) and prep for a sight-unseen offer plan if needed.
  4. Coordinate closing + HHG/TLE/TLA timing with your Compass Military agent so you’re not living out of duffels longer than necessary.

Work with Compass Military

We’re here to help. Connect with a Compass Military agent near your gaining installation to align preapproval, home search, and move-in—including POA and remote closing workflows when you’re OCONUS or in training.

Disclaimer: This article is educational and not legal, tax, medical, or financial advice. Eligibility, underwriting, and outcomes vary by borrower and lender. Use the official resources below and consult trusted professionals for specifics.

Official Resources

VA Home Loans

PCS / Entitlements / Regulations

BAH & Pay

Health Coverage (Orientation)

Terminology & Ranks