How to Get a Preapproval That Actually Means Something (Especially with a VA Loan)

Not all “preapprovals” are created equal. Some lenders hand them out like candy. No documents reviewed, no credit pulled, no underwriter in sight.

That’s not a preapproval. That’s a pre-problem. That is one of the top reasons deals fall apart.

What a Real Preapproval Includes

A legit VA preapproval should mean the lender has:

• Pulled your credit
• Reviewed your income docs (pay stubs, LES, tax returns, etc.)
• Verified your Certificate of Eligibility (COE)
• Calculated your debt-to-income (DTI) ratio
• Accounted for the VA loan funding fee and exemptions
• Verified your bank statements for ability to pay closing costs as well as for undisclosed debt and large deposits.

Bonus points if they run it through an Automated Underwriting System (AUS) like DU or LP. That gives you a conditional green light before even finding a house.

What a Fake Preapproval Looks Like

You filled out an app. Maybe someone glanced at your credit.

No docs uploaded. No review. Just a generic letter saying “you’re good.” Until you’re under contract…

And suddenly, they realize you don’t qualify for what they said.

Now you’re either scrambling to fix it or backing out of the deal completely.

Why It Matters More with VA Loans 

VA loans have a few moving parts:

• Entitlement must be confirmed
• Your income might include BAH, BAS, or disability pay 
• There are specific DTI and residual income guidelines
• If you are active duty we need to verify you will continue to be in the military at least 1 year post closing on the home to be able to use your income.

If your lender doesn’t dig into that upfront, your “approval” means nothing when it’s time to submit an offer or worse, when it hits underwriting.

Protecting Yourself (and Your Offer)

Here’s what I do differently:

• I collect and review full docs before issuing anything
• I talk to you about budget, not just max approval
• I give you real numbers so you’re not surprised by closing costs
• I prep you for what underwriters will care about
• We talk about strategies to limit your out of pocket (such as seller concessions) or lowering your monthly payment (such as rate buy downs or seller financed buy downs)

That way, when you write an offer, you can walk in with confidence and knowing the loan actually works for you and your goals.

If you’ve got a preapproval letter but no one’s asked for your pay stubs yet… you don’t have a preapproval. You’ve got a time bomb.