The next step is the most exciting in the process. It’s time to head to the title company for closing. At closing you’ll sign your name more times than you ever have in your life. Once you and the seller have signed all the appropriate documents, the title company will send them back to the lender for review.
Once the lender finishes reviewing them to ensure all documents have been completed fully and correctly, they will give the title company authorization to disburse the funds provided by the mortgage loan you’ve just taken out. This process is called “funding”. Once your loan is officially funded, you will receive the keys to the property.
There are a handful of lenders that will table fund their loans. This means that they send the funds with the closing documents, and title companies have authority to disburse as soon as all of the documents are signed. This may not seem like a huge benefit, but it is.
If you are signing your documents late in the afternoon, there may not be enough time left in the business day for the lender to review them and still get the funds wired to title in time to fund that day. This is can be especially troublesome if you are closing on a Friday or the day before a banking holiday.
Having moving trucks in front of your new home without having the keys to get into the property can make for an incredibly stressful day (or days if banks will be closed for a long holiday weekend). I highly advise working only with lenders that table fund their loans.
You’ll notice that I never mentioned obtaining your Certificate of Eligibility (COE) from the VA. That’s because you don’t need to do this yourself. Lender’s that originate VA loans, have the ability to obtain your COE on your behalf. So there’s no need for you to go through the trouble.
Now that you have a basic overview of the VA loan process you may be asking what activities should I avoid when buying a house. For answers be sure to watch my video “What not to do while buying a home” where I’ll be explaining in detail what activities can jeopardize your closing, and should be avoided at all costs.