A lot of homebuyers think the first step in buying a house is opening an app, scrolling through listings, and finding a home they like.
I understand why. Looking at homes is the exciting part.
But especially if you are a Veteran, active-duty service member, or eligible surviving spouse, the better first step is figuring out how you should finance the home—not simply how much someone is willing to lend you.
That distinction matters because a preapproval should be more than a letter with a purchase price at the top. It should be a review of your overall situation and a comparison of the loan programs available to you.
For an eligible Veteran, that means someone should specifically evaluate whether a VA loan makes sense before you begin shopping.
The Short Answer: Get Preapproved Before Looking at Homes
A mortgage preapproval gives you a realistic understanding of:
The price range you can comfortably consider
Your estimated monthly payment
The cash you may need at closing
The loan programs available to you
Potential qualification issues that should be addressed
Whether your Certificate of Eligibility and VA entitlement are available
How property taxes, insurance, HOA dues, and other expenses affect your purchasing power
A preapproval letter also tells a seller that a lender has reviewed your financial information and is tentatively willing to lend up to a certain amount. It is not a final loan approval, but sellers frequently want to see one before accepting an offer.
That is the practical reason to get preapproved.
The larger reason is that the right preapproval can keep you from overlooking a better financing option.
Being Approved for a Price Is Not the Same as Choosing the Right Loan
One of the questions homebuyers commonly ask is:
“How much am I approved for?”
That is a fair question, but it should not be the only question.
I believe a better conversation includes:
Which loan programs am I eligible to use?
What would the payment look like under each option?
How much money would I need to bring to closing?
Is a down payment necessary?
Will mortgage insurance be required?
What happens if I choose to preserve some of my savings?
Which option best fits my actual financial goals?
Two borrowers can be approved for the same purchase price while receiving very different financing.
A conventional loan may require a down payment and private mortgage insurance. An FHA loan may have different credit and mortgage-insurance considerations. An eligible VA buyer may be able to purchase without a down payment, subject to qualification and the property’s appraised value, while also avoiding monthly private mortgage insurance.
The highest approval amount does not automatically equal the best financial decision.
Veterans Can Miss Their VA Opportunity Before They Ever Make an Offer
This is where I think some VA opportunities are lost.
A buyer contacts an agent and says they have been approved for a certain amount. The agent understandably begins helping them find homes within that price range.
But what if nobody asks the next question?
“What type of loan were you approved to use?”
The buyer may have been issued a conventional or FHA preapproval without anyone checking military service, requesting a Certificate of Eligibility, reviewing remaining entitlement, or comparing that loan against VA financing.
By the time the buyer finds a house, the financing direction may already feel settled—even though the right comparison never happened.
That does not mean VA is automatically the best answer for every eligible borrower. There are situations where another program may fit the buyer or the property better. The important thing is that the VA option should be properly evaluated before it is dismissed or overlooked.
Current National Association of REALTORS® data illustrates why that conversation matters. Among people who purchased homes in 2025, 69% of active-duty buyers used VA financing, but only 55% of veteran buyers did. One-third of veteran buyers used conventional financing.
Some of those Veterans may have intentionally chosen conventional financing after comparing their options. Others may never have received a meaningful comparison.
Those are two very different situations.
A Certificate of Eligibility Is Important, but It Is Not a Preapproval
Your Certificate of Eligibility, commonly called a COE, confirms to a lender that your military service meets the basic eligibility requirements for the VA home loan benefit. It may also show how much entitlement you have available and whether you may be exempt from the VA funding fee.
A lender can often request the COE for you.
However, a COE does not mean the mortgage itself is approved. The VA explains that borrowers must also meet applicable credit, income, occupancy, and lender requirements.
A complete VA preapproval should therefore look at more than eligibility. It should review items such as:
Income and employment
Credit history
Current monthly obligations
Available assets
VA residual-income requirements
Occupancy plans
Entitlement availability
Funding-fee status
The estimated payment and cash-to-close
This is why receiving a quick number based on a short conversation is not the same as having your complete situation reviewed.
Prequalification and Preapproval Are Not Always the Same Thing
People often use “prequalification” and “preapproval” interchangeably, but there can be an important difference.
A prequalification may be an initial estimate based largely on information the borrower provides. A more complete preapproval generally includes a review of credit, income, assets, debts, and supporting documents.
Terminology and review standards can vary between lenders, so the most useful question is not simply what the letter is called.
Ask what was actually reviewed.
For a serious home search, I would rather identify an income, credit, entitlement, or residual-income issue before you become emotionally invested in a property. Finding it after your offer has been accepted puts unnecessary pressure on everyone.
Your Monthly Comfort Level Matters More Than Your Maximum Approval
Another mistake buyers make is treating their maximum approval as their target price.
Those are not necessarily the same number.
A lender may determine that you qualify for a particular loan amount, but only you can decide whether the corresponding payment fits comfortably with the rest of your life.
Before shopping, I like to discuss the complete estimated payment, including:
Principal and interest
Property taxes
Homeowners insurance
HOA dues, when applicable
Any applicable mortgage insurance
Other property-specific expenses
That conversation may lead you to shop below your maximum qualification. It may also reveal that the price range you expected is more comfortable than you thought.
Either way, you are making an informed decision instead of discovering the payment after finding the house.
Preapproval Helps Your Real Estate Agent Work More Effectively
The purpose of getting preapproved is not to replace your real estate agent. It gives your agent better information.
When the lender and agent communicate early, the agent can better understand:
Your realistic price range
Your intended loan program
Any property requirements that may affect the search
Your estimated cash-to-close
How the offer should be presented
Whether seller-paid costs could be helpful
How quickly the financing team can move
A strong homebuying team should understand both the property and the financing strategy. The earlier those two pieces come together, the fewer avoidable surprises you are likely to encounter.
A VA Preapproval Should Not Be Treated Like a Generic Approval
VA loans have considerations that do not apply in exactly the same way to every other mortgage program.
For example, an experienced VA review may include:
Whether you have full or remaining entitlement
Whether you currently have another VA loan
Whether you are exempt from the funding fee
How tax-free income may be treated
Whether VA residual-income requirements are satisfied
Whether a particular property type is eligible
Whether seller contributions could support your financing plan
Whether zero down is available and whether using it fits your goals
Residual income, in particular, is sometimes misunderstood. It is not simply another name for debt-to-income ratio. It looks at the money expected to remain after major obligations and estimated living expenses.
A residual-income question is not automatically a deal killer. Sometimes the file simply needs to be reviewed and structured correctly.
What Should You Do Before Touring Homes?
Before you start scheduling showings, take these steps:
Speak with a lender who understands all of the programs you may be eligible to use.
Disclose your military service so your VA eligibility can be evaluated.
Have the lender obtain or review your Certificate of Eligibility.
Submit the requested income, asset, credit, and identification documents.
Compare VA financing with any reasonable alternatives.
Review the estimated payment and cash-to-close—not only the approval amount.
Give your real estate agent a clear understanding of the financing strategy.
You are not committing yourself to a specific house simply by getting preapproved. You are giving yourself the information needed to shop responsibly.
The Bottom Line
Getting preapproved before looking at houses is not about putting an obstacle between you and the fun part of buying a home.
It is about making sure you begin the process with accurate information.
For eligible Veterans and service members, it is also an opportunity to determine whether the VA home loan benefit can improve the way the purchase is structured. That conversation should happen before you fall in love with a house—not after an offer has already been written.
I do not believe every Veteran should automatically use a VA loan. I do believe every eligible Veteran deserves to understand the option before choosing something else.
The goal is not just to learn what you can buy.
The goal is to understand how you can buy it, what it will cost, and which financing option makes the most sense for your circumstances.
Get Your VA Loan Snapshot
If you are planning to buy a home in Utah and want to know how your VA benefit may fit into the process, request your personalized VA Loan Snapshot.
We will review your eligibility, entitlement, estimated payment, cash-to-close, and available financing options so you can begin looking at homes with a clear plan.
Mikell Brown
VA Loan Advisor
Christian Roberts Mortgage
NMLS #185611 | Company NMLS #3138
MikellBrown.com
No comments yet. Be the first to share your thoughts!