Want To Buy A VA Home? Here's What Your Realtor Should Be Able To Do For You

Posted on

Are you looking to buy a new home using a VA loan? Here are a couple of important things your realtor should be able to do for you:

Find a Suitable Lender for You

Not all banks and lenders participate in the VA program, so it's important to find one that does before you even start the process of buying a new VA home. Finding a lender to work with beforehand will save you time and help keep stress levels down throughout the purchasing process.

Once you find a home you want to buy, you'll know exactly where to go to get a loan approval and move forward with the purchase. Luckily, you can count on your VA real estate agent to find a suitable lender for you based on things like your VA status and your budget.

Help You Get Prequalified

After finding a lender for you, your real estate agent will work with the lender to get you prequalified for your loan. By doing so, you'll know exactly how much the VA is willing to loan you which will make it easy to set a clear budget to stick with when deciding which home on the market you want to purchase.

If you don't get prequalified for your loan, you won't know how much you can spend before you'll face out-of-pocket expenses. So if you want to avoid spending thousands of dollars out-of-pocket or having your loan denied altogether, it's in your best interest to be patient and have your realtor take the extra time to get you prequalified.

Ensure a VA Loan Escape Clause is Included

When a VA approved evaluator appraises the home you want to buy, they'll provide the VA with an appraisal value of the home. And if it's determined that the home is appraised for less than the sales price, the VA won't pay for the entire home. You'll have to pay the difference yourself.

For example, if the home you want to buy is appraised at $130,000 but the sales price if $142,000, you can still get a loan for the $130,000 but you will be responsible for paying the $12,000 difference out-of-pocket. Luckily, the VA requires that a loan escape clause is included in the sales contract of any home they'll be financing.

The clause will allow you to back out of the deal if you can't or don't want to pay any money out of pocket that wouldn't be covered by your loan. But don't rely on the seller to include a clause. By having your real estate agent create the clause for inclusion in the sales contract, you'll avoid having to deal with delays due to inconsistencies or incorrect information.

Your VA real estate agent will also walk you through the closing and escrow process and ensure that you get the keys to your new home before they're done serving you.

For more information, contact a company like Willis Allen Real Estate.