Hi, it’s Dave Holland with Veterans National Mortgage.
Let’s talk about finding a lender or realtor that specializes in VA, and what questions you should ask. The most important part of knowing whether a lender or realtor specializes in VA is asking the right questions so that you can get a good lender that knows the VA loan product.
So the question that you should ask your lender, the very first one is pretty simple, is What experience do you have with the VA loan? And you should not be afraid to ask this, this is a very important purchase for you and your family. It’s okay to ask, hey, how much experience do you have doing this? And, you know, how are you going to benefit my family in purchasing this home?
It’s very important that you find a lender that knows what the different rules are for the VA loan so that you don’t get caught in a transaction. Where if the lender is charging a 1% origination fee, and the veteran can’t pay for certain things, that they don’t have to stop your loan and restart everything all over again, they need to know about the appraisal.
The VA appraisal is very unique, in that they use what’s called MPRS or minimum property requirements. The VA appraiser not only appraises the value of the property, but they will go through and make sure that the property is safe and sound for the veteran.
“And you should not be afraid to ask this, this is a very important purchase for you and your family. “
What does that mean? Well, what safe and sound means for the veteran is that there’s no peeling paint, or toasters in the bathtub, or, you know, cracks in the sidewalk that you’re going to trip and fall on. They want to make sure that those things are fixed and corrected before moving forward with the purchase.
Conventional loans and other types of loans don’t have that same requirement. Also for VA appraisal, it’s very unique in the fact that they have what’s called a Tidewater. And this on a VA purchase, the appraiser will actually give the lender and the real estate agents a chance.
They have a 48-hour window, that they can request an adjustment of the value if the appraisal comes in low and give comps on that property to see if they can get the value raised. There’s no other product that’s like that. Some other questions that you’re going to ask the lender are about entitlement or my certificate of eligibility, the most terrible thing in the world that you can do is have a lender that does not pull your certificate of eligibility upfront. And then something goes on down the line where you might lose that house because they did not do their due diligence when looking at that certificate. A very simple correction can be made if you catch things upfront.
“For VA appraisal, it’s very unique in the fact that they have what’s called a Tidewater. “
But that is the very first that certificate will show how much eligibility you have on that property. It’ll show if you are entitled to an exemption for the VA funding fee or not. If it’s a first-time use a second-time use, it’s going to have your name on there, everything has to match that certificate of eligibility. So you want to make sure that that is all correct.
Also, before you even get started, the loan officer needs to get your dd 214 and other important documents that you may need. In case you can’t get that certificate of eligibility ordered automatically. Sometimes you will need what’s called a statement of service if you’re still active duty. This is a statement from your CEO or commanding officer that says that you are in going to you are eligible to continue service for a certain amount of time to or to re-enlist these are all very important.
The dd 214 if you cannot get the certificate of eligibility, the DD 214 needs to be submitted as well as an authorization and you have to send that into the VA which could take time so you want to make sure that these things are done upfront versus waiting until your loan is halfway through. And the loan officer doesn’t have your certificate yet. That’s very important. Make sure that they do all of these things upfront.
We’ll also help you throughout the process because you want to make sure that the person that you’re in contact with has the ability to answer those questions for you as they arise. Just as you want to know how much experience the loan officer has for VA loans, you want to make sure that your real estate agent has that same experience.
“In case you can’t get that certificate of eligibility ordered automatically. “
There are documents that are needed in the real estate side of the transaction that the real estate agent needs to know of as well. So both sides have to work together and have that same expertise so that you guys can have a smooth transaction. So again, make sure that you have all of your documentation in order.
Your loan officer and your real estate agent know what that documentation is, and they know how to properly facilitate your VA loan.
Our team is excited to help you with your dream home.
Or you can call us directly at (888) 922-2022
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