Do you have to use a realtor with a VA loan?

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.

Do Realtors dislike VA loans?

It certainly is, local real estate agents say. VA loans come with red tape, appraisal delays and fees borne by sellers instead of buyers — all reasons offers are being rejected, agents say. In addition, real estate agents and veterans say, some sellers reject offers because of misconceptions about the VA program.

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 would a home seller not accept a VA loan?

Before it guarantees mortgages, the VA wants to ensure homes that eligible veterans buy are safe and secure as well as worth their sale price. … 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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Does the buyer pay closing costs on 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.

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.

What will fail a VA home inspection?

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.

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.
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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.

How often do VA loans fall through?

For example, some whisper that transactions using VA loans are more likely to fall through. In truth, 74.3 percent of VA loans for purchases close. In comparison, 74.1 percent of all mortgages close.