For all purchases, according to Ellie Mae, 74, 3 percent of VA loans closed, compared to 74, 1 percent of all mortgages. Conventional (non-governmental) performed slightly better than VA, with a close rate of 75.2 percent. In short, VA mortgages will close at a high rate and the average loan is less likely to fail to close. On average, VA loans take a little longer to close than conventional loans, but only in about 5 or 6 days.
And the process will move faster for some VA buyers. Buyers suffering from buyers' remorse will begin to separate the home, complain about inspection reports and appraisal, and begin looking for reasons to withdraw from the sale. After all, a home is the most expensive item most of us buy. Most VA loans close in 40 to 50 days, which is standard for the mortgage industry, regardless of the type of financing.
Like any other type of appraisal, VA ratings may be lower than expected. The unfortunate reality is that some homes are overrated by the seller. NMLS Consumer Access Department of Veterans Affairs Secures Mortgages Originated by Loan Centers In a fiery housing market, some military families using VA loans struggle to buy homes, say real estate experts. They could then lower the sale price to the same value as the appraisal, clearing the way for the VA loan to be processed.
But experts say some realtors and loan officers don't have much experience with VA loans, which has led to ongoing misconceptions. Appraisers have a longer checklist of minimum property requirements (MPR) for VA loans than for some other types of mortgages. In fact, dig a little deeper into the numbers and you won't find much of a difference between VA loans and conventional loans. If you can meet your seller in person, avoid subsequent problems by talking about how the VA loan works.
However, the current housing market is not doing our service members any favors if the VA lending process is not widely understood. Homebuyers often confuse their VA appraisal with a traditional home inspection, so we'll start by pointing out the difference between these two separate steps in the loan process. With this knowledge, you may have a better chance of having your next VA loan offer accepted. Loan rates and APR calculations also assume certain facts according to the type of loan described.
In short, there's no reason why a seller should reject your offer to buy simply because you're using a VA loan. There are a number of steps you can take to help get your VA loan offer accepted, even by a cautious seller.