Posted on: 29 August 2017
Looking to sell your home? If so, then you and your real estate agent will likely sit down at some point before you list and decide on the types of payments you'll be willing to accept on your home. This can include anything from a conventional mortgage or FHA loan to cold, hard cash. One type of loan you won't want to overlook, however, is a Veterans Administration (VA) loan. These loans are exclusively available to military veterans, and are becoming increasingly popular among buyers.
If you end up getting an offer on your home from a VA borrower, though, there are just a few things to keep in mind that may differ slightly than working with a "conventional" buyer!
You Might Incur a Few Extra Costs
There are some loan costs that the VA will not allow a veteran to incur, so these may be passed on to you or the lender may decide to pay for them. This will vary from one lender to the next. Usually, these costs include the loan origination fees and some underwriting fees. If you're asked to pay these by a VA buyer, remember that you can always negotiate.
VA Buyers Are Easy to Work With
The great thing about working with a VA buyer is that these loans are very secure and tend to be efficient in terms of closing on time. Furthermore, VA borrowers rarely run into issues in getting approved for their mortgages because there are very little requirements in place regarding down payments (there is no down payment required for a VA loan) and credit minimums.
An Inspection Will Be Optional
Your VA buyer will have the right to order an independent inspection of your property before closing, although it's not a requirement as it tends to be with other types of loans. Most VA buyers will exercise this right, but they will pay for the inspection out of their own pockets, so you don't incur any additional cost.
A VA Appraisal is Required
Unlike an inspection, an appraisal is required with a VA loan. The purpose of a VA appraisal is to make sure the home is worth at least what the buyer is paying for it and that the home meets basic living requirements (having functioning heating, electricity, etc.). This is another expense your buyer should pay for.
Selling to a VA buyer can be a smooth process if you know what to expect. Furthermore, you'll get to help someone who has served the country get into a new home. Contact a lender, like Green Path Funding, for more information.Share