The costliest VA mistakes: skipping the funding fee exemption, believing the weak-offer myth, buying a home that fails MPRs, not shopping lenders (or CalVet), assuming VA is one-time-use, mishandling entitlement, and opening new credit mid-process. Every one is avoidable. See the overview, requirements, and process.
On this page
Mistakes before you apply
1. Not checking your funding fee exemption
The #1 VA mistake. Veterans with a 10%+ disability rating pay $0 funding fee — often thousands saved — yet many pay it because no one checked. Fix: confirm your rating (and DIC/Purple Heart status) before closing. We always verify it.
2. Believing VA offers are weak
The "sellers hate VA offers" myth makes some veterans skip their best loan. VA loans close at comparable rates to other financing. Fix: use a strong pre-approval and a knowledgeable agent to present a clean, competitive offer.
3. Assuming VA is one-time-use
The benefit is reusable — entitlement restores after you sell and pay off. Fix: don't rule out VA on a later purchase; check your restored entitlement. See Eligibility.
4. Not shopping lenders (or CalVet)
VA rates and overlays vary widely; the first quote is rarely the best. Fix: use a broker who shops multiple VA lenders and compares CalVet with one application.
5. Buying a home that fails MPRs
The VA appraisal checks condition, so an as-is or fixer home can fail on safety or soundness. Fix: screen homes before offering; ask us to flag likely issues.
Mistakes during the process
6. Opening new credit or big purchases
A new car loan or furniture on credit raises DTI and can drop your score mid-process. Fix: buy nothing on credit until you fund.
7. Changing jobs mid-process
An income or job change during underwriting can require re-verification or derail approval. Fix: if a change is coming, tell your loan officer first.
8. Making large undocumented deposits
Big unexplained deposits force underwriters to source funds and stall the file. Fix: keep money where it is; document anything large.
9. Ignoring a low appraisal plan
If the Notice of Value comes in below price, an unprepared buyer can lose the deal. Fix: know your options in advance — renegotiate, cover the gap, or dispute.
Cost & benefit mistakes
10. Mishandling entitlement
Second-tier and restored entitlement math is easy to get wrong, especially when keeping one home and buying another. Fix: have us read your COE and map your entitlement before you commit.
11. Financing (or paying) the funding fee without thinking
Rolling the fee in is convenient but adds interest over time; paying cash saves interest but raises cash-to-close. Fix: decide deliberately based on your cash and how long you'll keep the loan.
12. Not comparing VA to conventional at 20% down
If you happen to have 20% down, conventional (no PMI, no funding fee) occasionally edges out VA. Fix: compare both — it's the one narrow case where VA might not win. See Pros & Cons.
The avoid-these checklist
✕ Don't
- Pay a funding fee without checking exemption
- Skip VA over the weak-offer myth
- Assume the benefit is one-time-use
- Take the first lender quote
- Offer on a home likely to fail MPRs
- Open credit or change jobs mid-process
- Make undocumented deposits
- Ignore a low-appraisal plan
✓ Do
- Confirm your funding fee exemption first
- Present a strong, clean VA offer
- Check restored/second-tier entitlement
- Shop multiple lenders and CalVet
- Screen homes for MPR condition
- Keep finances stable until closing
- Document any large deposits
- Compare VA vs conventional at 20% down
VA common-mistake FAQs
What's the most common VA mistake?
Paying a funding fee you were exempt from. Veterans with a 10%+ disability rating pay $0 — always confirm your rating first.
Do veterans wrongly avoid VA?
Yes — over the weak-offer myth or the one-time-use myth. VA offers close fine and the benefit is reusable. Compare before ruling it out.
What should I avoid during the process?
New credit, big purchases, job changes, and large money moves. Keep finances stable from application to keys.
Is not shopping lenders a mistake?
Yes — VA rates and overlays vary. A broker shops many lenders and CalVet with one application.
Can a home fail the VA appraisal?
Yes — MPRs check condition, so as-is homes can fail. Screen before you offer. See Process.
Reviewed by the licensing team at Save Financial, a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766) founded in 2009 and serving all 58 counties from offices in Newport Beach and Marina del Rey.