source:
  type: guide
  id: va-m26-7-ch05-t01
  authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 5, Topic 1 — Processing
    Procedures
  description: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 5, Topic 1 — Processing
    Procedures.
  coverage_tier: operative
obligations:
- id: va-m26-7-ch05-t01-full
  canonical_id: va-m26-7-ch05-t01-full
  section: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 5, Topic 1 — Processing
    Procedures
  type: do
  tags:
  - regulator-direct
  - va
  - va-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 5, Topic 1 — Processing
      Procedures
    source_class: va-handbook
    source_url: https://www.benefits.va.gov/warms/pam26_7.asp
    snapshot_id: 13ca1f98805e1a58
    fetched_at: '2026-05-23T01:53:53Z'
    content_hash: sha256:90ed18e04de81cd5072c187243efc82c729509a4244a5ab176844838f090b134
    paragraph_quote: '1. Processing Procedures Change Date April 1, 2019 • This chapter
      has been revised in its entirety. a. Order of Completion The procedures discussed
      in this topic must be initiated and may be completed in any feasible order,
      with the exception of the Certificate of Eligibility (COE), as long as they
      are all completed prior to loan closing. The COE must be obtained prior to ordering
      an appraisal. These procedures apply to both prior approval loans and loans
      closed automatically (except the procedure which specifically refers to prior
      approval loans). To avoid delays in closing, it is recommended that the lender
      take the following actions in the very early stages of loan processing: • obtain
      a COE (see subsection b of this chapter), • request an appraisal assignment
      in VA’s web-based loan guaranty system (WebLGY), (see Chapter 10 of this handbook
      for the steps to order an appraisal), • initiate the Credit Alert Verification
      Report System (CAIVRS) and, if applicable, a complete VA Form 26-8937, Verification
      of VA Benefits, (see Topic 6, Chapter 4 of the Lender’s Handbook), • request
      a credit report and verifications (see Topic 7, Chapter 4 of this handbook).
      b. How to Obtain a Certificate of Eligibility Verify the Veteran’s or surviving
      spouse’s eligibility for home loan benefits and amount of available entitlement
      by obtaining a COE in WebLGY. It is highly suggested that lenders obtain a COE
      online through WebLGY for the most efficient processing times. Veterans may
      also apply online through eBenefits. A COE obtained by the borrower in eBenefits
      will be in WebLGY. This COE can be accessed by the lender using at least two
      of the requested data points in the system, for example the reference number
      and Veteran’s social security number. An additional or updated COE does not
      need to be obtained or updated unless a change needs to be made to the COE.
      Please examine and understand the conditions of the COE. Failure to comply with
      the COE conditions may result in an ineligible loan (see Chapter 2 of this handbook).
      Continued on next page VA Pamphlet 26-7, Revised Chapter 5: How to Process VA
      Loans and Submit them to VA 5-3 1. Processing Procedures, continued c. Establish
      Reasonable Value of the Property After ordering an appraisal in WebLGY, the
      appraisal report is uploaded into WebLGY. The Staff Appraisal Reviewer will
      review the appraisal and issue the Notice of Value (NOV). A copy of the NOV
      will be available in WebLGY. The lender must obtain evidence of compliance with
      any NOV requirements. d. Determine if VA’s Occupancy Requirement is Met Determine
      whether the Veteran meets VA’s occupancy requirement. The loan cannot be closed
      as a VA loan unless the requirement is met (see Chapter 3 of this handbook for
      occupancy requirements). e. Underwrite the Loan Complete the procedures, verifications,
      and VA Form 26-6393, Loan Analysis, described in Chapter 4 of this handbook.
      Compare information received from different sources and resolve any discrepancies.
      Examples may include, but not limited to: • resolving differences in the number
      of dependents, and • resolving the amount or status of monthly obligation(s).
      The final signed Uniform Residential Loan Application (URLA), VA Form 26-6393,
      Loan Analysis, and final Automated System Feedback, should all reflect the same
      information. Continued on next page VA Pamphlet 26-7, Revised Chapter 5: How
      to Process VA Loans and Submit them to VA 5-4 1. Processing Procedures, continued
      f. Requirements for Active Duty Servicemembers Ensure every active duty Servicemember
      who applies for a loan is counseled through the use of VA Form 26-0592, Counseling
      Checklist for Military Homebuyers, as early as possible in the transaction.
      The active duty Veteran’s and lender’s signature on the form signifies counseling
      has been completed. Ensure the Veteran, eligible as an active duty member, is
      still on active duty at the time of closing if the COE indicates: “Valid unless
      discharged or released subsequent to date of this certificate. A certification
      of continuous active duty as of the date of note is required.” If the lender
      becomes aware that the applicant is no longer on active duty, the loan may not
      be closed unless VA re-establishes the Veteran’s eligibility as follows: • A
      Veteran released from active duty must have a DD214 Form (member copy 4) with
      time served, Character of Service Discharge, and reason for the discharge listed.
      It must be uploaded into WebLGY for the issuance of a new COE. • A Veteran released
      from the National Guard or Reserves must have evidence of time served and an
      Honorable discharge. This must be uploaded into WebLGY for the issuance of a
      new COE. • If a COE was issued based upon active duty service and the Veteran
      has been separated, eligibility must be re-determined based upon their length
      of service and character of service. g. Obtain a Certificate of Commitment on
      Prior Approval Loans Upload to WebLGY all prior approval loans for review (see
      Topic 4 of this chapter). Once approved by VA, the Regional Loan Center (RLC)
      will issue a VA Certificate of Commitment. Ensure compliance with any conditions
      listed on the Certificate of Commitment before closing the loan. To obtain the
      loan guaranty certificate, the closing package must be uploaded into WebLGY,
      for the RLC’s final review. VA Pamphlet 26-7, Revised Chapter 5: How to Process
      VA Loans and Submit them to VA 5-5'
  judgment: false
