Quick Answer: Does VA loan require Realtor?

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Do you need a realtor for a VA loan?

If you’re getting a VA loan, make sure you work with a real estate agent who understands the VA home loan process. “I see a lot of people go with an agent who doesn’t understand the VA system,” says Katie Fraser, a Realtor® with Trident Realty Group Northwest in Seattle. “The VA won’t underwrite [just] any house.

Who pays the Realtor with a VA loan?

Here’s a breakdown of who pays which closing costs in a California VA loan transaction. The seller typically pays: Real estate agent commissions. Real estate brokerage fee.

Can a realtor help with VA loan?

Real estate professionals help Servicemembers, Veterans, and their families find suitable housing. They can help find local lenders who provide VA loans and advise prospective homeowners about obtaining a VA Home Loan based on their professional experience.

Why do Realtors not like VA loans?

In some cases, home sellers won’t accept purchase offers backed by VA-guaranteed mortgages for fear of low appraisal value. … Because VA appraisals may increase their repair costs, home sellers sometimes refuse to accept purchase offers backed by the agency’s mortgages.

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Why are VA loans bad?

The lower interest rates on VA loans are deceptive.

Both will end up costing you much more in interest over the life of the loan than their 15-year counterparts. Plus, you’re more likely to get a lower interest rate on a 15-year fixed-rate conventional loan than on a 15-year VA loan.

Does VA have to pay closing cost?

One of the big benefits of VA loans is that sellers can pay all of your loan-related closing costs. Again, they’re not required to pay any of them, so this will always be a product of negotiation between buyer and seller.

Do I have to pay closing cost with a VA loan?

When using a VA loan, the buyer, seller, and lender each pay different parts of the closing costs. The seller cannot pay more than 4% of the total home loan in closing costs. … As the buyer, you’ll have to pay the VA funding fee, loan origination fee, loan discount points, the VA appraisal fee, title insurance, and more.

How can I avoid closing costs with a VA loan?

Now, you know there are closing costs on VA loans, but what if you don’t want to or cannot bring those costs to closing? The most common way to overcome bringing these funds to closing is by seller paid closing costs and VA sales concessions. Remember, the seller is NOT required to pay the buyer’s closing costs.

What will fail a VA appraisal?

What Will Fail a VA Appraisal? In general, any visible health or safety concerns will pose an issue on a VA appraisal report. You won’t be able to close on a home until these issues are resolved. In some cases, sellers are willing to cover the cost of essential repairs rather than lose the sale.

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Can I buy my first home with a VA loan?

How can I buy a home with a VA-backed loan?

  1. Apply for your VA-backed home loan Certificate of Eligibility (COE) You’ll need to show your COE to your lender as proof that you qualify for the home loan benefit. …
  2. Look at your current finances. …
  3. Choose a lender. …
  4. Choose a real estate agent. …
  5. Shop for a home.

How often do VA loans get denied?

Overall, about 15 percent of applications are denied, but some may be able to reapply.

What are the disadvantages of a VA loan?

5 Potential Disadvantages of a VA Loan

  • You May Have Less Equity in Your Home. …
  • VA Loans Cannot be Used to Purchase Vacation Homes or Investment Property. …
  • Seller Resistance to VA Financing. …
  • The Funding Fee is Higher for Subsequent Use. …
  • Not All Lenders Offer – or Understand – VA Loans.

How strict is a VA home inspection?

VA appraisal guidelines can be strict and can eliminate fixer-uppers from contention. Many of the guidelines can be frustrating for military buyers who are considering older homes in need of renovation. If a home fails to meet the MPRs the buyer will have to decide how they want to proceed.

Is it harder to buy a house with a VA loan?

Should you be worried? The short answer is “no.” It’s true VA loans were once harder to close — but that’s ancient history. Today, you’re likely to have roughly the same issues with a buyer who has this sort of mortgage as any other. And VA’s flexible guidelines may be the only reason your buyer can purchase your home.

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