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Topic 2: Prior Approval
Change Date: March 2, 2026
· Topic 2, section b, table 2, item 4, Purchase Agreement has been updated to include the buyer broker representation agreement consistent with Circular 26-24-14.
· Topic 2, section b, table 2 has been updated to include Verification of Rent or Mortgage as item 8. Subsequent items have been renumbered. This would have previously been included in other necessary documents but has been given its own item.
· Topic 2, section b, table 2, item 17 (formerly item 16) has been updated to include Child Care Statement.
· Topic 2, section d, table 4, item 5 has been updated to include the lender’s provision of invoices for itemized fees under Circular 26-24-19.
· The “Alive and Well” statement, included in tables 2, 3, and 4 under Other Necessary Documents, has been updated to “Alive and not Missing in Action” statement for consistency with VA Lenders Handbook 26-7 Chapter 9 Topic 8.
a. Background
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Lenders without authority to close loans on an automatic basis (commonly referred to as automatic authority) must submit all proposed purchase and cash-out refinance loans to VA for prior approval. All lenders, regardless of their authority to make VA loans, must also submit certain types of loans to VA for prior approval .
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As described in Chapter 5, before submitting a loan to VA for prior approval: the NOV must be issued, the loan must be completely underwritten, and active-duty Service members must have received counseling using VA Form 26-0592. The stacking order for requesting prior approval is provided in section b for purchase and cash-out refinance loans and section c for IRRRLs.
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The stacking order for reporting a closed prior approval loan is provided in section d.
The files should be uploaded as a single-file PDF into VA’s WebLGY or subsequent system to the correspondence section of the loan record as a ‘Prior Approval Loan Package’. If the single-file PDF size exceeds VA’s size limit, it is permissible to split the file, however, the PDF files should still follow the stacking order. Documents should not be uploaded individually and should be provided in as few uploads as possible.
Additional information on prior approval loans is available in Chapter 5.
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38 C.F.R. § 36.4352
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38 U.S.C. § 3702(d)
b. Prior Approval Request Stacking Order – Pre-close – Purchase/Cash-Out Refinance This stacking order is used to request prior approval for a purchase or cash-out refinance. Note that to complete the prior approval request, the lender must also complete the Loan Analysis in WebLGY. Instructions on how to complete the loan analysis are available here: https://www.benefits.va.gov/HOMELOANS/documents/docs/prior_approval_LP_lenders.pdf Table 2: Prior Approval Request Stacking Order: Purchase/Cash-Out Refinances
Order Document
1 Lender’s cover or transmittal letter, including the reason for submission, and
underwriter point of contact including email, and phone number.
2 VA Form 26-8937, Verification of VA Benefits (if applicable)
3 URLA
· Initial - fully executed by all borrower(s).
· Final – proposed at final terms of the loan (does not need to be signed). 4 (For Purchase Only) Purchase Agreement including all contract addendums, the
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buyer broker representation agreement, and the signed VA Escape Clause.
5 VA Form 26-8497, Request for Verification of Employment, and all other verifications of income such as pay stubs and tax returns. Include explanations of employment gaps greater than 30 days. Any income documentation obtained
during processing should be provided in the loan file.
6 Credit Alert Verification Report System (CAIVRS): borrower/co-borrower
7 All credit reports obtained in connection with the loan and any related documentation, such as, explanations for adverse credit if required.
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8 Verification of Rent or Mortgage . The borrower’s most recent 24-month rental history and any outstanding, assumed, or recently retired mortgages must be verified and rated.
9 VA Form 26-8497a, Request for Verification of Deposit, and other related asset documents such as gift letters (Alternative documentation: Original or certified true copies of last two bank statements). Any asset documentation obtained during processing should be provided in the loan file.
10 VA Form 26-6393, Loan Analysis, including any necessary explanations regarding the underwriter’s determination of creditworthiness. Note: As loans should be completely underwritten before submission to VA, this form should be completed and signed by the underwriter at the final terms of the loan.
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11 VA Form 26-0592, Counseling Checklist for Military Homebuyers , if the
Veteran is on active duty.
12 All Loan Estimates(s)
13 Documentation of the cost of energy efficiency improvements to be included in
the loan (if applicable).
14 (For Cash-out Refinances Only) if the loan being refinanced is a VA loan originated less than 12 months from the date of closing, a ledger balance or
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servicing statement to show at least six consecutive payments were made .
15 (For Cash-out Refinances Only) NTB disclosures, evidence that the lender provided the disclosures to the Veteran within three business days of application.
16 (For Cash-Out out Refinances Only) Evidence of the NTB that will be met. For example, if the NTB is an interest rate reduction, the most recent mortgage
statement or other document to show the current rate should be provided.
17 Other necessary documents (for example – but not limited to, Child Care Statement, Adjustable Rate Mortgage/Hybrid Adjustable Rate Mortgage disclosure, Power of Attorney and Alive and not Missing in Action statement if used, Buydown Agreement, Lenders Loan Quality Certification, Escrow Agreement)
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38 C.F.R. § 36.4303(k)(4)
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38 C.F.R. § 36.4340(g)(10)
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38 C.F.R. § 36.4340(f)(2)(iii)
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38 C.F.R. §§ 36.4306(b)-(c)
10 Chapter 9 Topic 8
c. Prior Approval Request Stacking Order – Pre-close – IRRRLs
This stacking order is used to request prior approval for an IRRRL.
Table 3: Prior Approval Request Stacking Order: IRRRL
Order Document
1 Lender’s cover or transmittal letter, including the reason for submission, and
specific point of contact, email, and phone number.
2 VA Form 26-8937, Verification of VA Benefits (if applicable)
3 URLA
· Initial - fully executed by all borrower(s).
· Final – proposed at final terms of the loan (does not need to be signed). 4 The initial disclosures reflecting the (NTB and recoupment, and evidence that the lender provided the disclosure to the Veteran within three business days of application.
5 VA Form 26-8923, Interest Rate Reduction Refinancing Loan Worksheet
6 CAIVRS: borrower/co-borrower
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7 VA Form 26-0592, Counseling Checklist for Military Homebuyers , if the -
Veteran is on active duty.
8 Documentation to verify that the cause of the delinquency has been corrected.
9 All credit reports obtained in connection with the loan and any related
documentation such as explanations for adverse credit if required.
10 Loan Payoff Statement.
11 Copy of the modification agreement if the loan to be paid off is a modified loan.
12 Evidence the loan meets seasoning for example, a ledger balance to show at least
six consecutive payments were made.
13 Evidence of the obligors on the loan being refinanced (Example: copy of the
mortgage/note for existing loan).
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14 A copy of the most recent mortgage statement. The statement should be reflective
of the current terms of the loan (i.e. interest rate and current payment amount).
15 All Loan Estimates
16 Documentation of the cost of energy efficiency improvements to be included in
the loan (if applicable).
17 Other necessary documents (for example – but not limited to, Child Care Statement, Adjustable Rate Mortgage/Hybrid Adjustable Rate Mortgage disclosure, Power of Attorney and Alive and not Missing in Action statement if used, Buydown Agreement, Escrow Agreement)
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38 C.F.R. 36.4340(f)(2)(iii)
11 Chapter 9 Topic 8
Prior Approval Guaranty Reporting Stacking Order – Post-close
This stacking order is used to report the closing of a prior approval loan and request issuance of the LGC. Table 4: Prior Approval Guaranty Reporting Stacking Order
Order Document
1 Lender’s cover or transmittal letter, including a specific point of contact with email and phone number.
2 If a loan is submitted more than 60 days after loan closing, a statement signed by a corporate officer of the lender which identifies the loan, provides the specific reasons for late reporting, and certifies that the loan is current. This statement must be submitted with any late request for issuance of a LGC .
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3 (For Purchase and Cash-Out Refinances Only) Evidence of compliance with NOV requirements, such as, final compliance inspection.
If an escrow of funds is necessary to complete unfinished repairs, provide the escrow holdback agreement. Once the repairs are complete the lender must provide evidence of completion. Refer to Chapter 9 for additional information.
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4 URLA
Fully executed by the borrower(s) at final terms of the loan.
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5 Closing Disclosure Statement and invoices for itemized fees under Circular 26-24-19.
6 VA Form 26-1820, Report and Certification of Loan Disbursement
7 Copies of the fully executed Note and Mortgage/Deed-of-Trust
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8 Lenders Loan Quality Certification , signed by an officer of the company
9 Evidence that any principal reductions were applied to the loan, this includes principal reductions for overcharges or those required to cure.
10 (For Cash-Out Refinance Only) NTB disclosures, evidence that the lender provided the disclosures to the Veteran at closing.
11 (For IRRRLs Only) The final disclosure reflecting the NTB and recoupment, and evidence that the lender provided the disclosures to the Veteran at closing.
If applicable, the Veteran’s statement may be combined with the lender’s certification that the Veteran qualifies for the new monthly payment which exceeds the previous payment by 20% or more. 12 Other necessary documents (for example – but not limited to, Power of Attorney and Alive and not Missing in Action , if used, and any documentation necessary
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to satisfy all conditions listed on the commitment)
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38 C.F.R. § 36.4303(f)
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12 C.F.R. § 1026.38
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38 C.F.R. § 36.4340(k)
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Chapter 9 Topic 8