Hi, I am unsure of the process involved with this. I have lived in my current house for 5 years with my current mortgage using a VA Loan, and I am now looking to move this year and sell my current house. I have read up on the CoE and understand I will have to sell, but I was curious if there is a way to get pre-approval for the new loan still because I won't be able to just move out of the house and hand over the keys to a new owner if I dont have a place to move into first, I guess I'm not really sure how the whole process works, any help is appreciated.
Here is what an expert had to say:
This is a common scenario and should not be a problem to work through. Often the sale of existing home and purchase of the new home happen the same day (not recommended) or within days of each other. This is called a simultaneous closing and the procedure to restore your VA entitlement is called subsequent restoration. Typically, you need to provide the lender with the final settlement statement (HUD1) from the sale of your home and they will take care of the rest. This should have no impact on your closing timeframe.
I hope this helps!