I have yet to see a real estate contract folder that is less than a couple inches thick. While the sales contract may only run from 1 to a dozen pages, there are plenty of trees required to fill the rest of the folder for disclosure forms, mortgage application, addenda, notification forms, et.al.

If you're applying for a government-insured loan, such as financing backed by the FHA, VA, or the Rural Housing Service -- then the file gets even thicker. Nevertheless, much of the paperwork can save you money, especially for those who qualify for VA financing.

The VA program is a great benefit to those borrowers with qualifying federal service. Pretty much, the loan allows a buyer to purchase a house with no money out of his or her pocket.

Before you can even apply for a VA loan, a borrower must first prove to the lender that he or she is eligible for such a loan by supplying a "Certificate of Eligibility." This certificate is available through VA.

To start the process, a veteran or active military personnel must fill out VA Form 26-1880 (Request For A Certificate of Eligibility For Home Loan Benefits) and submit it to one of VA's Eligibility Centers. There are two such centers: The Los Angeles office serves the West side of the country and the eastern side of the country goes through Winston-Salem, N.C. For the dividing lines, press here.

Part of the eligibility process requires acceptable proof of federal service, which involves several other forms, depending on when you were discharged. Get your pencils handy:

For those in REGULAR ACTIVE DUTY: Discharged after Jan. 1, 1950: send a copy of DD Form 214, Certificate of Release or Discharge From Active Duty (submit one of these with VA Form 26-1880).

Discharged After Oct. 1, 1979: send a copy of DD Form 214 copy 4. Currently active duty: send an ORIGINAL statement of service signed by, or by direction of, the adjutant, personnel officer or commander of your unit or higher headquarters.

For veterans discharged from SELECTED RESERVES OR NATIONAL GUARD:

You need to show at least 6 years of honorable service. For Army or Air Force National Guard, submit NGB Form 22 (Report of Separation and Record of Service) or NGB Form 23 (Retirement Points Accounting).

Veterans who have been out of the military for a while may want to consider searching for military records through yet another form: Standard Form 180, Request Pertaining to Military Records.

Although not widely known, the VA program is also available to individuals with something other than service in the Army, Navy, Marines or Air Force. For instance, officers in the Public Health Service, cadets and midshipmen at service academies, and officers of National Oceanic and Atmospheric Administration also qualify for VA loans.

For a complete list of those currently eligible under the VA program, press here.

The VA loan guarantee is not free. While loan qualification standards are liberal when compared with traditional conventional requirements, VA loan rates are at market levels and there is a "funding fee" equal to 2 percent of the loan for a new mortgage with less than 5 percent down, 3 percent for a second loan to a vet, and an additional .75 percent premium for National Guard and Reserve personnel who use the program. This money must be paid or financed at closing, but there is no monthly premium thereafter -- a big savings when compared with FHA mortgages or loans backed with private mortgage insurance (PMI).

Keep in mind, the VA loan stays with the property. If a buyer assumes a VA loan, then the original borrower may not obtain another VA loan until that original mortgage is paid off or a veteran buyer substitutes his or her available eligibility for that of the original veteran. If a veteran pays off a loan, and hangs onto the property and attempts to purchase another property with another VA loan, eligibility for VA benefit may be restored one-time only. Just provide proof that the first VA loan has been retired to prevent delays in the new financing.

One final note. A surviving spouse of a veteran who died on active duty or as the result of a service-connected disability is still eligible to use the VA loan benefit so long as the surviving spouse has not remarried. If the surviving spouse obtained the loan with the veteran prior to the veteran's death, the spouse may qualify for a VA guaranteed interest rate reduction refinance loan. Contact one of the Eligibility Centers for details.

M. Anthony Carr is a Washington-based author who has written about real estate issues for more than a decade.