Veterans and Military families have earned a lot of benefits, but the VA loan may be doing them a disservice on the market. But what is it that makes some sellers turn down these qualified offers? and why now?
Many sellers and real estate agents have a negative misconception about this loan and how the housing market is performing. As interest rates are steadily rising, VA offers become less enticing to sellers in this buyers market here in Santa Clarita. While a VA loan is the safest bet when it comes to funding, a lot of sellers won’t go with a VA offer.
There are actually quite a lot of reasons to consider a VA loan but let’s start with their closing success rate…
Do VA Loans Close???
As mentioned before, part of accepting an offer is that the buyer has the money to close the loan. VA buyers on average are the strongest in this current lending climate. VA shoppers are more likely to get to closing day, at least on average, than any other buyer. This statistic has been repeated time and again in recent years, as can be seen in our previous article on VA loans.
There are certainly other considerations, but at the end of the day, the seller wants a buyer who can get through to closing day without a hiccup. Nobody does it better than VA buyers.
Turn Times On a VA Loan
Over the years the VA loan program has invested heavily in technology to help VA loans keep pace with other loan products on the market. The enduring misconception was that VA mortgages are riddled with red tape and long closing time, but obviously isn’t true.
Of course, every buyer’s situation is unique, but on average there is little difference in closing time between VA and conventional loans.
The average being a conventional purchase loan closing just three days faster than a VA loan.
Getting Appraised For a VA Loan
A VA appraisal starts with a valuation and broad assessment of the property conditions, known as the Minimum Property Requirements (MPR’s). Depending on where you live it could take longer to get approved but here in Santa Clarita, it should come back in just under 10 days.
For sellers, your home does not have to be in perfect condition to pass a valuation. If the appraiser does not report any problems with the condition of the property, the buyer can obtain an exemption from the VA. If the exemption is granted, the seller of the home will not have to pay repair costs, but it is possible that they will do so to advance the deal.
The VA limits closing costs, which is a huge benefit for those who serve our country. Sellers are not required to pay the closing costs on behalf of the VA or the buyer, including any fees. Payment of the closing costs is always a matter of negotiation between buyer and seller. The seller is never forced to pay towards the VA or the buyer’s bottom line.
Get Pre-approved Now (Get a VA Loan in Santa Clarita In Under 25 Days!)
As a seller you have the last say during the sale, we hope you recognize when it makes sense to go VA borrower. We feel the least we could do for our VA borrowers is to give them a great opportunity on the home of their dreams.
Don’t fall victim to misconceptions about VA loans, if you have any questions don’t hesitate to contact us. Or if you’re ready to start your homeownership journey, fill out our online application to get pre-approved! Pre-approval increases your chances of closing on the home of your dreams.