Yes, that is right. You did not meet the requirements
Of course. That document may well serve you as proof before your lender that you qualify for a Veterans home loan benefit.
Something else regarding Veterans home loan benefit, what are the next steps  for getting a VA direct or VA-backed home loan?
You guessed right on that last one. Doing the application is just the first step. Next ones will be determined by loan type and lender you have, whether this be a private bank or a mortgage company.