VA Loan Checklist for First-Time Home Buyers
$0 down doesn’t mean $0 in costs. I’d start by confirming VA eligibility, requesting a Certificate of Eligibility (COE), and getting preapproved - with a budget for both monthly payments and cash to close.
Here’s the checklist I’d follow:
Prepare your loan file: Gather income and bank records, review all three credit reports, and confirm entitlement and funding-fee status.
Compare homes: In 92119, 92120, 92122, and 92121, check condition, taxes, insurance, HOA costs, permits, and any condo or solar requirements.
Protect your offer: Review contingencies, include the VA escape clause, and have your lender check seller credits. Seller concessions have a 4% cap based on VA reasonable value.
Check the property: Schedule an independent inspection and the VA appraisal. They serve different purposes. Resolve required repairs and any appraisal shortfall.
Finish and close: Meet lender deadlines, compare loan disclosures, verify wire instructions by phone, complete your walkthrough, and confirm recording and possession.
My rule: <u>eligibility isn’t loan approval</u>. Keep your payment, closing costs, and repair reserves within your budget - not just your preapproval amount.
The No BS First-Time Homebuyer VA Loan Guide (2026)
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Prepare for VA Loan Preapproval
Get your documents, credit, and budget in order before touring homes or making offers.
Confirm Eligibility and Request Your COE
Verify your qualifying service or surviving-spouse status and gather supporting records, such as a DD Form 214 for many Veterans. Request your Certificate of Eligibility (COE) through a VA-participating lender, VA online services, or VA Form 26-1880, then save it for your lender.
Also confirm your remaining entitlement, funding-fee exemption status, eligible property type, and primary-residence rules.[8][9][12]
Gather Income Records and Review Credit
Gather pay stubs, W-2s, bank statements, ID, employment history, tax returns, and any needed military or self-employment records. Keep everything in a secure folder.[10][15][18]
Review all three credit reports and dispute errors. Document your debts, large deposits, and gift funds, including student loans, alimony, and child support. Unresolved errors, debts you haven’t disclosed, or unexplained deposits can delay the lender’s review.[10][15][16][17][18]
Ask your lender about its credit thresholds and how it evaluates your debt-to-income ratio, reserves, and VA residual income. The VA has no universal minimum credit score, but lenders can set their own thresholds and stricter underwriting rules.[10][7][13][15]
Check what your preapproval covers: a preliminary or full underwriting review, home-price and loan limits, rate assumptions, expiration date, and any conditions you still need to meet.[15][5]
Set Your Monthly Budget and Cash-to-Close Limit
Set a monthly spending ceiling that includes principal, interest, property taxes, homeowners insurance, HOA dues, utilities, and maintenance. For homes in 92119, 92120, 92122, and 92121, check taxes, insurance, HOA dues, and special assessments for the specific address. Set your cash-to-close limit, too, and keep a separate reserve for move-in costs and repairs.[1][14]
Ask whether your entitlement and proposed loan require a down payment. When your Loan Estimate is available, review its funding-fee treatment, lender and settlement charges, prepaid items, escrow items, earnest money already paid, and seller credits. The lender generally must provide it within three business days of receiving the required application information.[5][14][19]
Until closing, avoid new debt, unexplained deposits, and undocumented transfers. Talk with your lender before making any job changes.[5][14][19]
Find a San Diego Home and Prepare Your Offer
Use your preapproval to set clear limits: your purchase price, monthly payment, cash to close, target timeline, and property type. The Richard Elias Team, with Compass Real Estate, can help you compare Greater San Diego homes, assess pricing, and prepare offer terms. Your lender still handles underwriting and the property review.
Before you tour or make an offer, use the ZIP-specific checks below to spot local risks.
Review Homes in 92119, 92120, 92122, and 92121
For each home, compare the total monthly cost, condition, commute, permits, parking, and expected upkeep.
ZIP code | Property-specific checks |
92119 | Review hillside and canyon conditions, drainage, retaining walls, slope stability, access roads, and vegetation management. Confirm that insurance is available. Wildfire, landslide, and drainage risks may affect coverage and deductibles. |
92120 | Check lot grading, drainage, mature trees, retaining structures, access, and permits for additions. Review HOA dues, pending assessments, insurance summaries, and rental or occupancy restrictions. |
92122 | For condos, verify parking and storage rights, monthly dues, special assessments, reserves, master-policy coverage, and building maintenance responsibilities. Confirm the project’s VA approval status with your lender before making an offer or promptly afterward.[22] |
92121 | Use public records to confirm that the home is legally permitted for your intended use. Review zoning, permits, occupancy status, and restrictions.[21] Check nearby commercial, industrial, laboratory, warehouse, airport, rail, freeway, or similar traffic sources that could affect noise, traffic, air quality, parking, or resale. |
If the home has solar panels, find out whether they’re owned, financed, leased, or covered by a power-purchase agreement. Request the contract, payoff or transfer requirements, payment history, equipment warranty, and lien information. Have your lender review the arrangement before you remove contingencies.
Set Offer Terms and VA Buyer Protections
Once a home fits your budget and risk tolerance, nail down the offer terms.
Review the price, earnest money, contingencies, appraisal terms, closing and possession dates, fixtures, repair duties, and HOA/solar deadlines. Include the required VA escape clause. It protects you from forfeiting earnest money or being forced to complete the purchase if the contract price exceeds the VA reasonable value.[5][20]
Before you submit, have your lender separate seller-paid closing costs from seller concessions. Seller concessions are capped at 4% of the home’s VA reasonable value.[3] Ask the lender to review credits, discount points, buydowns, and prepaid expenses individually. Put agreed repairs and credits in writing, and request an updated cash-to-close estimate based on the proposed terms.
Complete the Steps From Accepted Offer to Closing
Once your offer is accepted, follow the contract timeline from contingencies through closing. Track contract deadlines, VA repairs, lender conditions, and disclosure deadlines separately. Confirm inspection, repair-request, contingency, closing, and possession dates with your agent, lender, and escrow holder. If you need more time, request an extension before the deadline passes.
Schedule Inspections and the VA Appraisal
Use the hillside, drainage, condo, and zoning concerns from your San Diego home search to decide which specialty inspections and document reviews to request.
Review | Purpose | Who arranges it | Timing | Effect on purchase |
Independent home inspection | Identify defects, safety issues, and maintenance needs | Buyer, with agent’s help | Early in the inspection period | Supports repair negotiations or cancellation under an inspection contingency |
Specialty evaluations | Check roof, sewer, pest, drainage, or structural concerns | Buyer, with professional recommendations | Before the contract deadline | Provides repair estimates and identifies risks |
VA appraisal | Assess market value and observable VA Minimum Property Requirements (MPRs) | Lender orders it | After acceptance, subject to scheduling | May identify required repairs or a value shortfall |
Repair verification | Confirm required work is complete | Lender, appraiser, or approved professional | Before final approval or closing, as required | Unresolved conditions may delay closing |
The VA appraisal is not a full inspection. Order an independent home inspection and any needed specialty evaluations right away.[4]
Address hillside, drainage, and retaining-wall findings before your inspection deadline. Keep VA-required repairs separate from ordinary repair requests, and ask your lender what evidence it needs to confirm completed work. Don’t assume a seller credit will satisfy repair requirements.
If the appraised value comes in low, options may include renegotiating, requesting a documented reconsideration of value through the lender, bringing additional cash if permitted, or using your contract protections.[25][24]
Finish Underwriting and Review Closing Documents
Keep your loan file moving while you work through the remaining contingencies. Submit updated income records, bank statements, and deposit explanations through your lender’s secure portal. Document gift funds and earnest money, too.
Arrange homeowners insurance early, and confirm coverage, deductibles, and the effective date. Ask for a written list of remaining loan conditions, who handles each one, and their deadlines. Check with your lender before changing jobs, opening credit, or moving large amounts of money. Clear to close does not mean every contract step is complete.
Review point | Loan Estimate | Closing Disclosure |
Timing | Generally within three business days after receipt of required application information - not offer acceptance | Generally received at least three business days before closing |
Contents | Estimated terms, payment, costs, and cash to close | Final terms, projected payments, charges, credits, and cash to close |
Buyer action | Check whether it fits your budget | Compare with the Loan Estimate; resolve unexplained changes before signing |
Confirm your rate-lock status and how the VA funding fee will be handled. Ask whether a corrected disclosure requires a new waiting period. Have your lender confirm the dates using each document’s business-day rules.[11][23] Also review your appraisal copy and title or escrow documents.
Verify Funds, Walk Through the Home, and Confirm Possession
Before you receive the keys, verify funds, check the home, and confirm when you can take possession.
Verify wire instructions by phone using a known escrow number - not a number from an email. Confirm the account details, amount, delivery deadline, and receipt of funds. Check identification and signing requirements as well.
Bring the repair agreement to your final walkthrough. Check completed repairs and included fixtures, test systems with the utilities running, and photograph unresolved issues.
After signing, have escrow confirm funding and recording. Your contract determines when you receive keys and can move in, including any rent-back or delayed occupancy.
Save your closing documents, inspection reports, appraisal, repair receipts, and insurance records. Arrange utilities for possession, update your address, and confirm your first mortgage payment date and payment method.
Conclusion: Check Your Readiness to Close
After your final walkthrough, run through this last check before closing.
Make sure your lender has reviewed your COE, accepted your income, assets, and credit, confirmed your remaining entitlement, and verified that the home will be your primary residence.[6][4][2]
Treat your preapproval amount as your ceiling - not your spending target. Keep your payment, cash to close, and reserves within your budget.
Before signing, get written confirmation that all lender and property conditions have been cleared.
If you’re buying in San Diego, the Richard Elias Team can coordinate your home search and closing timeline. Ask your lender about loans and underwriting. For VA eligibility questions, contact your lender or the VA.
FAQs
Can I get a VA loan with limited credit history?
Yes, you may qualify for a VA loan with limited credit history. The VA doesn’t require a minimum credit score, but lenders set their own standards. A score of 620 is generally considered ideal.
Before applying, focus on paying your bills on time and avoiding new credit inquiries. A local lender who knows VA guidelines can help you work through the qualification process.
What if a seller refuses VA-required repairs?
If a seller won’t make VA-required repairs, ask for a repair credit instead. Seller concessions may let you complete the work after closing, provided the arrangement meets safety and lender requirements. This could also help keep your closing timeline on track.
But a credit may not be enough if the VA, through the lender or appraiser, requires repairs before loan approval. In that case, treat the repairs as a condition of closing and renegotiate with the seller.
How can HOA assessments affect my VA loan approval?
HOA assessments can affect your VA loan approval and budget. Lenders count monthly HOA fees in your debt-to-income (DTI) ratio. They generally use 41% as a benchmark for VA loans - not a strict cap - though lender requirements vary. Pending special assessments for major repairs or replacements are future costs lenders may also consider.
Review HOA budgets and reserve studies early to check whether these costs fit your loan terms and total cost of ownership.
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