Attention Veterans

[TommyT]

I need your help.

We have a contract on our home in Georgia and the family is going through the Veterans Administration for their loan. I've never dealt with the V.A. on any home we've every sold and don't know how this works or what to expect.

My questions are;
How long of a process is this ?
What must I do on my side to help move this forward ?
How long does it take for the buyer to get either approval or denied ?

Any other help would be greatly appreciated.

TIA

[kb8tpw]

The VA process is not the fastest one on the block, but would depend on a lot of factors. Their inspection process is a bit more stringent than on a conventional mortgage. Your realtor should be very aware of local "norms" for VA. In the past 25-30 years I personally found that conventional was the preferred method for me, rather than VA, but it is a fairly localized thing and the mortgage company they deal with will be a large determinate. Good luck ! If they have been pre-qualified, etc it will be quicker too.

[TommyT]

Your realtor should be very aware of local "norms" for VA.

Thanks for the info... let me add, we are not using a realtor. They heard we were getting our home ready to put on the market and contacted us. So as for now we are dealing as a FSBO (Forsale by Owner).

[Skybo]

I've used my VA loan benefits a couple of times in years past and if I recall correctly, the main concern was always the appraisal. They tend to appraise lower.

[Figmo Bohica]

Get a lawyer to help you.

[Trish Crocker]

Don't be concerned with the VA process, it's actually quite easy and painless. I have sold many homes using FHA and a few VA (I'm a realtor) and they are not much more complicated than a conventional mortgage. There is typically a home inspection but they are just looking for hazards (no GFI's in the kitchen or bath, stuff like that). Your realtor can tell you if there would be any problems. I wouldn't worry at all if I were you. You'll be in TV very soon! As to getting a lawyer to help, I would never tell someone not to use the services of an attorney, but you do have to understand, everything in the entire process, every form you sign, is drawn up by attorneys to protect the seller, purchaser, realtor and lender. The whole thing is quite standard. Talk to your broker, they can explain everything to you, that is what you are paying for. Remember, the broker is working for you, and that means the broker's legal department. Using a lawyer may not be necessary and will end up costing you a lot of money for nothing. The whole VA thing is just a way for your buyer to utilize the benefits he has earned, allowing him to buy a home with typically less money out of his pocket, that's all it is. The lender just wants to make sure the home is up to their standards and is worth the money being loaned. Good luck! Oops...just read your post about selling it yourself.......hmmm...maybe you should call the attorney....just hope his services are less than the money you are saving by not using a realtor.

[TommyT]

I would not go through this without the services of an attorney. I have more sense than that. The buyer is working with his mortgage firm to get a V.A. type loan and will have a closing in an attorney's office I'm sure. Will I have an attorney on my side, you bet your bottom dollar.

My original question, since we never had a chance to list this home and deal or pay a realtor was simple, what can I expect and how long will this process take to get to closing, on the average ???

Thanks for all the responses. :thumbup:

[wendyquat]

After being a real estate broker for 30 years I can tell you that you might not even realize a difference in VA and other mortgages. All of it depends on the actual processor of the mortgage.

Conventional mortgages might seem to be more favorable but one needs to realize that MANY buyers NEED the 100% financing to even think of buying a home! This is the main purpose of VA loans and the veterans have earned this perc and more! The inspection might be a little more stringent but nothing that shouldn't be dealt with anyway.

There is NO way to tell you how long the process will take but it should not take any longer than FHA or conventional mortgages. As I've said it pretty much depends on who is originating the mortgage and the buyers ability to get the requested information in on a timely manner.

Relax and take it one step at a time and you'll be here before you know it!

Best of luck to you!

[TommyT]

Wendy, I appreciate that information. :BigApplause:

[wendyquat]

Just to add -- we sold our house in NC to a couple getting a 97% FHA loan. Thinking it would take awhile, we set the closing date as being towards the end of May. Everything fell in place and we actually closed 4/12 and had to get out about a month earlier than we anticipated! It was hectic but in this market, when they say close, you CLOSE! We found ourselves homeless for 2 weeks but it as a GOOD homeless!

[Gerald]

On average today a VA loan takes about 8 to 12 weeks from start to finish. If there is anything that is found durning inspection you can add on another 2 to 3 weeks. You do need an attorney to protect yourself. There are some things that can make it faster. Like having all your home information available for the attorney's on both sides. Like land and house drawings, C.O.'s etc. anything you do not have may have been recorded by your town. See them for copies.