View Full Version : VA Home Loan - Tips and Timeline?
Lease at current house is up in May, right around when my wife is due with our second child. I'm at a point in my career I feel comfortable with buying a home, and don't mind paying rent+mortgage for a month or two if it keeps us from having to move right before or after baby arrives. Current rent is $1500, so looking to stay at or below for mortgage cost per month. Looking to do a VA Home Loan and was wondering what others' experiences have been as far as proper timeline for:
1) Getting the "yes, you are qualified to get a VA Home Loan" letter
2) Beginning the search
3) ID'ing home and beginning that process
4) etc.
Also, any home buying tips? Extra costs to be aware of both in the buying process and in actual owning? Fairly handy, and can do most repairs if needed -- I don't mess with electrical but have a few sparky friends, don't mind some fixer upping but not into a complete remodel as I will have to do anything after work/on weekends.
Would most likely be looking for a place out east of Springs w/ 40 acres or so (more if price isn't insane). Ellicott, Calhan, etc. Preference would be something where the property butts up against a hill for shooting potential.
Don't rule out moving west of the Springs where we have trees, large game animals, and plenty of backstops.
Get a good inspector and ask for everything to be fixed before buying. All they can say is, "No."
Don't offer full price. Low-ball the buyer and let them counter-offer. All they can say is, "No."
VA is the cheapest/easiest loan to close on.
You can get a nice place for your $1500 out east or west.
Even if you had the time, good luck convincing your wife to have a newborn living in a construction project.
HBARleatherneck
12-07-2016, 23:35
to get the letter all you have to do is go to
https://www.ebenefits.va.gov/ebenefits/homepage
if you dont already have an account, sign up. you can then print you letters anytime you need them. VA loan is fast and easy, I have done multiple home purchases that way. I have one now.
VA home loans are an excellent way to go about getting a house. When you select your bank or credit union, be sure to get pre-qualified, so you know what you can afford. Make sure your buyer's agent (and DO get a buyer's agent; you pay them nothing- they get their commission from the seller) knows your absolute limit, and stick to those guns.
You and you wife should sit down and make a list of what you require in a home, and a second list of things that you'd like (but aren't deal breakers.) Think twice about buying a house with the intention of living in a construction zone while you tweak what you want. That is the best way for Murphy's Law to kick in and you suddenly get swamped with work or you have unexpected relatives staying with you, or something else that puts a halt to your plans.
Plan on spending a few hundred dollars for a good housing inspector. Make sure to do your due diligence in selecting one that is qualified, one that will tell you EVERYTHING they find, and will put it in a report...and most importantly, one that does not live in the same town as where you are buying. I'd even go so far as to stalk them on Facebook and make sure they aren't friends with the seller. We eliminated two housing inspectors based on that alone.
The homeowner may lie his/her ass off as far as known problems of the house. The buyer's agent certainly will; it's in their best interest to say, "not to my knowledge," so they can unload the house as quickly as possible. That's why I write a list of questions to be given to the homeowner: when was the roof last replaced? Have there been permits pulled for construction or improvements? Is there a homeowner's association? Are there covenants associated with the property? Are there easements you need to be aware of? Are you in a location that allows you to discharge a gun? Don't go by what the seller says; find out through the sheriff's department.
When we went home-shopping, I brought a kit with me that I put together myself. I brought a level, to see if the walls and windowsills were plumb. I carried a lighter and would hold the flame near the windows to see if there were any drafts. I took a million photos, and would print them out and put them in an envelope with the listing information and any questions that I had. I brought a 50' tape measure, to measure the rooms and to see if our furniture would fit. Our buyer's agent once made a somewhat-disparaging remark about my questions and my kit and the following day I started to work him like a bitch. This is the biggest investment you'll make. Don't forget who holds the checkbook in this case.
Do not forget the moving costs, the hook-up fees for internet/cable/gas/etc, the fact that you will need time to move in and you'll want to watch the weather- you don't want to move during blizzard season!
Visit the place during different times of the day. You'll want to see if the morning rush hour is so bad that you'll have trouble backing out of your driveway. Will you be near a school? A church? Ask the neighbors if there are noises or activities you should be aware of? (For instance, there is often illegal street racing that takes place in the next-door neighborhood. It's a source of vast irritation to anybody trying to sleep at night along that street.)
A few years ago, I would say not to bid what the seller is asking, but in this market, I would rethink that in specific cities.
Remember you will be responsible for paying mortgage insurance, on top of your mortgage. Also remember as a homeowner, you are responsible for bills that you are not- sewer, water, streetlight fees, taxes, maintenance, etc.
Because of this, I would HIGHLY suggest a homeowner's warranty for the first year. Within a month of us buying our home, our refrigerator and our wall oven died. Three weeks after that, the microwave's circuit board crapped out. Our homeowner's warranty covered all of it.
That's all I can think of for now, although I know there is a lot more. I apologize for the length of the ramble, and wish you luck! :)
Thanks for the replies so far, especially detailed ones!
Gonna put all these in OneNote for viewing with the wife.
We went through the Homes for Heroes program last year when we bought our house. I'm not sure who the realtor or lender are for CO Springs, but up here it is Jay Holland and Fairway mortgage. We walked out of our closing with a check for a little over 2500 as the realtor and lender in this program gave us a rebate for using them.
https://www.homesforheroes.com/
We went through the Homes for Heroes program last year when we bought our house. I'm not sure who the realtor or lender are for CO Springs, but up here it is Jay Holland and Fairway mortgage. We walked out of our closing with a check for a little over 2500 as the realtor and lender in this program gave us a rebate for using them.
https://www.homesforheroes.com/
We went through Fairway in Greeley for our USDA loan. Good people.
I have nothing to add other than congrats Cav! It's a big decision but one that pays off.
Remember, it's not just what the "housing market" does but your housing costs. To get into a place at cost of rent + tax deductible interest + equity = better place than renting. A lot of people buy and then watch Zillow like the stock market!
Remember you will be responsible for paying mortgage insurance, on top of your mortgage. Also remember as a homeowner, you are responsible for bills that you are not- sewer, water, streetlight fees, taxes, maintenance, etc.
:)
I thought with VA backed loans there was no PMI? Perhaps it is loan amount dependant?
My first home loan was VA backed and I don't think we had PMI, but that was a long time ago.
newracer
12-08-2016, 10:28
PMI is based on the loan to value ratio.
My only advise not already mentioned would be to buy sooner than later, interest rates will be going up soon.
PMI is based on the loan to value ratio.
My only advise not already mentioned would be to buy sooner than later, interest rates will be going up soon.
VA loans have no PMI requirement (same with USDA loan)
We sold our prior home to a couple buying their first home on a VA loan. Seemed like a great way to go.
Actual location...check the schools, zoning, crime map first. I have a friend who was a LEO in Calhan...his impression was retired .mil, LDS and drug users were the three major demographics in the town, so check around. I'd even go so far as to talk to the LEOs in the area.
Actual home...demand (or pay for it yourself if they balk) inspections by actual trade professionals for plumbing, HVAC and Electrical. Home inspectors can be good and bad and taking the one the REA provides only ensures that the deal will go through. I am sure Irving can tell you stories as well, but I have seen some real messes with home inspectors in the last few years, especially with 10 year old plus properties that are not in big cities. You want a scope of the main sewer line, actual test of the HE in the furnace (CO detector) full survey of attic and foundation/crawlspace. Get your sparky to check the panel and test the circuits. Have the plumber check the anode and PRV of the water heater as well as all connections including those for water to the fridge, washing machine and dishwasher.
When we bought our used home, the home inspector noted two things, about $500 in repairs. After I went through it, with a structural and an electrical, we found over $10K worth of issues, some serious. Xcel came out and reset the gas meter and disconnected the electrical until the owner got an electrician to repair the riser and panel issues. Then there was a bunch of other stuff. The owners paid about $5k in repairs and I fixed some of the lessor stuff, and got $7K off the price of the home. 9 times out of 10, what you pay real tradesmen out of pocket will be more than made up for in repairs and price reductions.
Just FYI, our first home, I got all the big things fixed in about 6 months. But the rest of the improvements literally lasted until a month after we moved out...10 years worth. Did two bathrooms down to studs and everything new, all new carpet and floors, and paint (inside and out), new deck, new AC, more insulation, new kitchen, redid a bunch of the landscaping, new staircase, new roof, and lots of electrical. The value of our home increased about 45% in 10 years and it took about 15% of that increase in expenses. When we sold it, the home inspector did not find anything wrong.
Great advice, guys. Keep it coming. I plan to collate these nuggets of wisdom in a single document and will make that available for anyone who asks.
DenverGP
12-08-2016, 11:29
For a VA loan, they are VERY picky about certain issues: Any peeling paint (even if it's on something like a deck, etc) is a no-go. Same for any kind of siding issue that could cause water penetration. Even if you are handy and intended to fix these issues yourself, they won't approve the loan.
Here's some info: https://www.veteransunited.com/valoans/understanding-the-vas-minimum-property-requirements/
I ran into this issue when doing a re-fi, intended to get some cash out so that we could replace siding and re-paint... but they wouldn't approve the re-fi until we made temp repairs...
Don't over extend yourself on your first home (or any home).
DON'T OVER EXTEND YOURSELF ON YOUR FIRST HOME.
There are a lot of expenses with home ownership that get taken for granted when renting. You don't want to put yourself into a position where you're already stretching to make a mortgage when you find out that YOU are going to be on the hook for maintaining everything. A dream home that costs too much quickly turns into a nightmare home if it isn't maintained. The best thing I did was buy a house that we could easily afford. I've been able to pay it down faster and have funds available should anything large go out (water heater/furnace). Another point, which I struggle with myself, is if you can easily afford and maintain your home, then you can more easily keep it in sale ready condition. My house nearly doubled in value this year and it would have been the perfect time to sell and move into a different market, BUT, I never got off my butt to refresh and keep near sale ready condition, so I'm still here.
Bailey Guns
12-08-2016, 18:06
My advice? Hire The Grey to check out any home/seller/inspector you might be interested in! :)
She pretty much nailed it.
VA loans are great for buyers, not so great for sellers...at least that's what we've found. It's been our experience they take just a bit longer to close and, as has been mentioned, they're very picky in their requirements. On the other hand, it's easier to qualify for a VA loan, the interest rate is usually slightly lower, no PMI and they don't require a down payment.
Also, don't just check out one lender. Price shop with lenders just like you would for anything else. Costs can vary wildly.
On the plus side, you can get a lot of house for $1500 month. But always keep in mind how much insurance and property taxes will add to the payment.
Good luck!
http://www.recolorado.com/
Keep in mind that your payment will be principal and interest + taxes + insurance. Just because you are qualified to a certain amount doesn't mean that you will be comfortable paying the nut for that amount. If you live well now at $1500 per month than that would be a good starting spot.
Find a real estate agent who is full time, knows the neighborhoods you are interested in and has connections to contractors and bankers. VA is a fine program but there may be better options out their that may work for you and you wife. Know what areas and types of houses are moving and how fast they are moving. In a slow market you have a lot more leverage as a buyer. Price points for houses are just as important as area markets. In some neighborhoods, everything between 150,000 and 250,000 may be moving quickly and houses above 300,000 are on the market for months.
This time of year is actually a good time to look. Only serious buyers and stressed sellers are looking at houses around Christmas.
Good luck with your home search. God's Blessings on you and your growing family.
Be safe.
BushMasterBoy
12-08-2016, 19:12
Talk to the neighbors before you buy. Make sure there is a dedicated ground to the fuse box. Smaller houses are cheaper to maintain. Use Google Earth to look at any prospective purchase. Check the assessors website for tax info. Make a list of the criteria you have to have in a house!
Own the house, don't let the house own you.
Honey Badger282.8
12-08-2016, 22:07
VA home inspection is pretty simple as they look for basic things. When I bought my house a window had to be replaced and the outlets in the kitchen and bath had to be upgraded to GFCI. The biggest thing I'd recommend is do your homework on the home inspector.
Also, if you're looking on the east side of CS look a bit NE, specifically the Peyton Pines area and around the Bijou Basin. It's absolutely gorgeous out there.
Can't help you with the loan part as I went a different route.
But on the realtor hire one and remember they are working for you but I found they also will show certain homes first and steer you towards homes they want to sell. I got out first and drove around and found the areas I wanted to live in first and then ask the realtor to look up homes in those areas. When they give you the list look on Zillow (etc) for others in that area that you like the look of and ask to see those also. I found our cabin up in Cripple Creek this way and the realtor didn't even know it was for sale. We found the perfect place up there that way.
As mentioned before DON'T OVER PURCHASE if the rental works for you now then look for something that size or a little bigger. I worked in the construction biz during the last housing boom and people would have these huge ass home and sheets on the windows because they couldn't afford blinds. Also they would have empty rooms because the couldn't afford furniture.
Several people have mentioned not financially over-extending oneself. I agree with this. With rent at $1500, what would a good buffer mortgage monthly payment look like?
BushMasterBoy
12-09-2016, 09:53
I would say $750 or there about. Other expenses would be taxes and insurance.Realtor dot com and zillow have some estimates on there website. Office excel program has some fill in the blank loan programs. I paid cash for mine so I can't really say for sure.
Several people have mentioned not financially over-extending oneself. I agree with this. With rent at $1500, what would a good buffer mortgage monthly payment look like?
Our mortgage is $1543, $97 in mortgage insurance, and $180 in escrow (tax and insurance). I'm on a USDA loan. Just to give you an idea.
I would say $750 or there about. Other expenses would be taxes and insurance.Realtor dot com and zillow have some estimates on there website. Office excel program has some fill in the blank loan programs. I paid cash for mine so I can't really say for sure.
What on earth would one get for $750 a month... a shack?
I've looked at various calculators and cannot find consistency, and they don't say what is included in said payment.
Was under the impression people were talking about being able to put aside the difference for repairs.
Let me clarify -- what would a TOTAL monthly look like with a buffer, vs the risk transference seen in renting.
Depends on down payment but I'm going to assume zero for this example.
Loan amount $225000.00
Interest Rate 3.5%
Property Tax $2250.00
PMI $0.00 VA loan
Insurance $2000/yr
Monthly payment would be $1364.00
Now with that said I estimated property taxes and insurance off of what I pay and both are on the high side but not outrageous. Interest rate will not effect the loan payment that much but does effect total paid over 30 years.
Using the example above, if you can comfortably afford $1,500 a month, and you get a mortgage of $1,364, I'd either still pay $1,500 a month, which will end up as just over an additional payment a year and could take as much as 10 years off a 30-year note, or I'd put that money directly into savings for maintenance. Could even split the difference and do both.
Using the example above, if you can comfortably afford $1,500 a month, and you get a mortgage of $1,364, I'd either still pay $1,500 a month, which will end up as just over an additional payment a year and could take as much as 10 years off a 30-year note, or I'd put that money directly into savings for maintenance. Could even split the difference and do both.
A quick calculation off the above statement will save you 6yrs and about $31000 in interest.
Totally worth it for an extra $136 a month.
I pay an extra few hundred a month on my mortgage. Helps out a lot in the long run.
If you use Lurch's monthly payment above, that still does not cover Utilities. Trash, Gas, Electric, Water & Sewer is going to vary based on house size and location and construction, but I would budget at least another $300 to be safe. Avoid HOAs IMHO. If my current home had an HOA, I would not have bought it.
1500 is our rent total, including garbage and HOA fees, etc. -- not sure if sewer is part of our water or not. I'd need to re-look at our lease. We pay utilities (water/gas/electric).
I'm pretty anti-HOA unless they're hands off and only do certain, needed things. I could care less if my neighbor has a hot tub in the back of a rusted out El Camino while blasting Skynyrd.
Aloha_Shooter
12-09-2016, 12:14
Use a buyer's broker rather than just picking an agent from ads. They are often the same person, the difference is that a buyer's broker has fidiuciary responsibility to you the buyer while an agent technically works for the seller. That can affect their obligation to pursue or disclose certain information. I have a couple people in the Springs that I trust a lot.
VA Loan is nice if you don't have a large amount for downpayment but you can often find better terms with a traditional loan if you have good credit and the 20% (or more) downpayment. Not having to do the downpayment can be convenient if you need the additional cash flow to fix up or furnish the house (e.g., new appliances) but if you don't need to do that then you should think about the overall cost after rates and fees.
I used a VA loan for my very first house purchase and the agent was familiar enough with them that it was really no stress and I had all the eligibility paperwork done and qualifiers in hand before we finished looking at prospective houses. In fact, I would advise you figure out your loan details before even looking at places so you have the comfort of knowing what you can or are willing to pay and have the assurety of pre-approval on the loan while you begin the negotiation process. You may find it worthwhile to talk to a mortgage broker to compare the VA loan versus other types of loans in terms of overall cost, fees, etc.
Using the example above, if you can comfortably afford $1,500 a month, and you get a mortgage of $1,364, I'd either still pay $1,500 a month, which will end up as just over an additional payment a year and could take as much as 10 years off a 30-year note, or I'd put that money directly into savings for maintenance. Could even split the difference and do both.
^ Smart man!
OP, if you are going for a rural lot, you can call your insurance company and ask for a quote. For city lots, most people can guestimate exactly what you'd pay with standard replacement, liability, deductible, etc... But land + distance from fire = ?$
Also consider the property taxes portion of your escrow will be tax deductible. So not a 100% recovery, but multiply by your effective Fed tax rate and you'll be getting that piece back (or "saving" off of taxes due). Same on interest. Of course, those are year-end adjustments and don't help your monthly out-of-pocket costs of ownership.
We bought our place through some First Time home buyer program, and a soon as I could, when I got to 80/20 loan to value, I refinanced into a traditional 30-year to get rid of the PMI. I just remembered that VA loans apparently don't require PMI, but it's still a relevant tip to help you remember that if you have to settle for some term you don't love, you can work to change it later. Paying the extra on the mortgage helped to reduce the time it took to get to 80/20.
We bought our place through some First Time home buyer program, and a soon as I could, when I got to 80/20 loan to value, I refinanced into a traditional 30-year to get rid of the PMI. I just remembered that VA loans apparently don't require PMI, but it's still a relevant tip to help you remember that if you have to settle for some term you don't love, you can work to change it later. Paying the extra on the mortgage helped to reduce the time it took to get to 80/20.
After "too big to fail" PMI is a scam IMHO. Everything it taxpayer backed anyway, so why force borrows (taxpayers) to pay a premium?
https://play.google.com/store/apps/details?id=com.drcalculator.android.mortgage&hl=en&referrer=utm_source%3Dgoogle%26utm_medium%3Dorgani c%26utm_term%3Dkarl%27s+mortgage+calculator&pcampaignid=APPU_1_mR5LWO7VCNC4jwPH_ofQDw
"Karls mortgage calculator" app is the best I've seen for plugging in payments mortgages pmi charts and amortization
PMI has always been a scam of epic proportions. The house is the collateral. If the risk is too high, the lender should not loan.
RonMexico
12-09-2016, 18:19
Apply for your VA approval letter now.
Gave that to my lender and didn't have any problem. Quick simple and I wish I used a VA on my first home
Mick-Boy
12-09-2016, 22:18
We're going through a similar process right now. Baby #3 on the way, bigger house needed, etc. We're buying on a VA loan (3.25%). Our process was a little unorthodox because my wife found the house she wanted the day I left for Afghanistan (I was not thrilled..) so everything from my end has been esigned/printed and mailed)
As I understand it, the biggest delay with VA loans is the appraisal process, which can run a few weeks. As far as the Etc. on your list, just to give you an idea;
OCT 27 Pre-qualification letter received/Loan application submitted
NOV 1 Loan assigned to processing
NOV 10 Loan sent to underwriting
NOV 11 Loan Approved
NOV 21 Loan Assigned to appraiser
DEC 5 Appraisal complete
DEC 8 Loan sent to title company
We'll close as soon as my PoA shows up in CO. All in it's going to have been a 7-8 week process from offer to closing.
The reason for PMI, and it's cutoff at 80% LTV on conventional loans, is that when the borrower defaults on the loan and the lender forecloses on the house, the lender then has to resell the house to get their money back. But, foreclosure sales usually only sell for 80% of their value; so the difference between the sale price and the defaulted loan amount is paid for by the PMI company. Essentially youre paying insurance to make sure the lender doesn't lose money in case you default on the loan. Typical insurance "scam", your money protects someone else. FHA loans are the same concept, but you pay PMI for the life of the loan. This is because FHA is usually used for borrowers with lower credit, etc.
Also, yes from what I've heard around the office, VA appraisals are a bit backed up because so many people are buying houses right now, and there are only so many appraisers that are licensed to do VA appraisals. They're just booked up. But depending on the lender, your appraisal, and you getting the requested documents to your LO, loans can take anywhere from a week to months to close.
I highly recommend, while in the process of your loan, do NOT open any new credit cards, car loans, bank loans, etc; or go on a spending spree with your credit cards. This can throw your debt to income ratio to high for approval. You'd be surprised how many people get a new CC mid-loan process, then charge the crap out of it, or buy a new car, then wonder why there are problems.
Also, I recommend shopping around for rates. Once they pull your credit score, you have 30 days to get it pulled as many times as you want/need, within the same industry (i.e. other mortgage brokers only, car loans or credit cards are a different industry), with out getting another hit on your score. I think most people go with the first lender they talk to because they don't know that, and the lender wont tell you that. So, 30 days, shop around.
Good luck!
PMI has always been a scam of epic proportions. The house is the collateral. If the risk is too high, the lender should not loan.
My grandparents actually got a refund of PMI premiums (late 60s I think). I guess very few of the Greatest Generation defaulted on their mortgages leaving a surplus in the insurance pool.
I don't think that happens anymore.
But yes, total scam.
The reason for PMI, and it's cutoff at 80% LTV on conventional loans, is that when the borrower defaults on the loan and the lender forecloses on the house, the lender then has to resell the house to get their money back. But, foreclosure sales usually only sell for 80% of their value; so the difference between the sale price and the defaulted loan amount is paid for by the PMI company. Essentially youre paying insurance to make sure the lender doesn't lose money in case you default on the loan. Typical insurance "scam", your money protects someone else. FHA loans are the same concept, but you pay PMI for the life of the loan. This is because FHA is usually used for borrowers with lower credit, etc.
[snip]
Yes, I know the stated reasons for PMI.
But these same banks will write unsecured credit card debt into the tens of thousands risking a lot of money that may never get back. So the question is not if the bank can completely recover on defaulted debt, but how much they get from debt consumers for the privilege of loaning our own money (0% Fed rate) back to us. And after 2007/08, turns out we back all those loans anyway (not just Freddie/Fannie).
If PMI were actually an insurance product, the homeowner would own the policy and be protected from a default/short sale. But banks still ding borrowers' credit for shorts and 1099 the difference, right (reverted back for TY2015)? So the bank is forcing the consumer to purchase an insurance product that doesn't mitigate a default for the borrower.
And if PMI does pay a claim to the banks, why are the banks issuing 1099s to deduct the losses? (I've always wondered that) They shouldn't be able to deduct an insured/paid loss, but the insurance company can. So are they acting as both?
It would be more honest of the banks to just add a few basis pts to a loan with > 80% LTV. Then it would be completely tax deductible for the borrower (up to the limits on mortgage interest).
Also, the PMI on conventional loans is based on the original LTV. So, when you buy a house, make improvements, markets increase, they won't drop the PMI in most cases without a lot of time and effort. On our first home, I refinanced at 1 year just to remove the PMI as the value had gone up 15%, but the bank would not drop the PMI even though we were at 72% LTV, so I just went with a different lender.
Also, the PMI on conventional loans is based on the original LTV. So, when you buy a house, make improvements, markets increase, they won't drop the PMI in most cases without a lot of time and effort. On our first home, I refinanced at 1 year just to remove the PMI as the value had gone up 15%, but the bank would not drop the PMI even though we were at 72% LTV, so I just went with a different lender.
I had no issue getting the bank to drop the PMI after a refinance. I had to get another home inspection and the market going up helped more than anything. Maybe I just got lucky though.
"after a refinance"...is the issue. When you are at 72% LTV and they won't drop PMI without a refi even though they would lend you 80% LTV with no PMI, that kind of spells racket.
Well, when I refinanced, I still wasn't quite at 80/20. During the process I made sure to let them know that the only reason I was refinancing with them was to get rid of the PMI, and if I couldn't do that, I was going to have to look elsewhere. They said it was no problem and to just notify them when I crossed the threshold. It was a few months after the refi and I just called them to let them know. They had me email or fax something (don't remember) and the PMI hasn't been showing up on the bill ever since. Like I said, I may have just gotten lucky with that credit union.
Don't forget to factor in the VA funding fee. Usually 2-3% of purchase price. Its usually waved if you have any type for disability from you service. Also, I recently refinanced to VA from an FHA. Paint wasn't in such great shape so I had to paint the house before I could close. VA can be real picky sometimes about the condition of the house.
Don't forget to factor in the VA funding fee. Usually 2-3% of purchase price. Its usually waved if you have any type for disability from you service. Also, I recently refinanced to VA from an FHA. Paint wasn't in such great shape so I had to paint the house before I could close. VA can be real picky sometimes about the condition of the house.
Good point - I had forgotten about. Now that I recall, when I did my first and only VA loan, I was on 10% disability (back injury which they subsequently took away after 12 months) so I didn't have to pay the funding fee.
Great-Kazoo
12-12-2016, 23:19
Don't forget to factor in the VA funding fee. Usually 2-3% of purchase price. Its usually waved if you have any type for disability from you service. Also, I recently refinanced to VA from an FHA. Paint wasn't in such great shape so I had to paint the house before I could close. VA can be real picky sometimes about the condition of the house.
VA considers peeling paint, on houses older than X years old, to contain lead. Our current home was built in 1904 had peeling paint on 2 window frames. Even though the home has been repainted within a 15 year period. To them as they put it "potential for trace lead residual" was enough to warrant repainting. However, the only painting they required was to the 2 windows. Once done we closed.
While the VA is a great way to buy a home. Their quirkiness for repairs prior to approval is somewhat off.
VA appraisals are the most strict in terms of requirements/guidelines on acceptability. But peeling paint is also an FHA issue depending where the paint is. The problem is peeling paint exposes bare wood which can then rot. That rot can then cause a safety/health hazard as the rot can eventually cause structural issues, etc.
But also, as the Great-kazoo said, interior paint can have lead based paint issues on houses built before 1978. FHA does has a disclosure that they require to be signed on houses built before this date such that the borrower is aware of the issue. I'm not sure if VA has this same requirement.
Great-Kazoo
12-13-2016, 06:58
VA appraisals are the most strict in terms of requirements/guidelines on acceptability. But peeling paint is also an FHA issue depending where the paint is. The problem is peeling paint exposes bare wood which can then rot. That rot can then cause a safety/health hazard as the rot can eventually cause structural issues, etc.
But also, as the Great-kazoo said, interior paint can have lead based paint issues on houses built before 1978. FHA does has a disclosure that they require to be signed on houses built before this date such that the borrower is aware of the issue. I'm not sure if VA has this same requirement.
Appreciate the date clarification. IF one is in a hurry avoid a VA or FHA loan. If you're a 1st time home buyer in CO there's a few options (or were) that offer low interest rates. Depending where they are in todays market
Update...
The loan process itself was easy as complex and paperwork-filled things go.
Would have been in the new house had the current occupants not wanted to push it back to mid april for closing. Why they listed a desirable house in a desirable neighborhood in early/mid February, with no desire to be out sooner than later, is beyond my comprehension.
So... post-close tips?
I'm assuming things like change locks, get with security system company and activate service in our name, etc.
What else?
Any pre-close tips (prep utility company, etc.)?
Great-Kazoo
04-07-2017, 20:44
Update...
The loan process itself was easy as complex and paperwork-filled things go.
Would have been in the new house had the current occupants not wanted to push it back to mid april for closing. Why they listed a desirable house in a desirable neighborhood in early/mid February, with no desire to be out sooner than later, is beyond my comprehension.
So... post-close tips?
I'm assuming things like change locks, get with security system company and activate service in our name, etc.
What else?
Any pre-close tips (prep utility company, etc.)?
Are you not doing a walk through before closing?
The utilities should be done with only a name change for billing. or it use to. Heat, water are the 2 that were usually not interrupted. You should verify this with realtor and utilities before closing.
Regarding the security people. Read the terms of contract before renewing, along with exploring other options. Who knows how much that sec company was taking the previous owners for.
The closing date may have been changed due to house the people you purchased from, not being able to move. The housing market has created a domino effect. Seller a is waiting for seller b to sell before they can do anything.
What are the terms of your contract? If there's nothing in writing, you may be stuck come current closing date.
We are doing walk-through.
Will do on security
Closing date did not change. We asked for 1 Apr. They said 14 Apr. They are not buying another but plan to move out of state w/ temp housing until their kids finish the school year in May.
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