Veterans United Home Loans
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by Tiffanie Flagler
- August 3, 2018
- Flagler Real Estate, New Home Builders
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Who qualifies for a VA Loan? Are you a military veterans or active military on a quest to achieve the dream of homeownership. More than 22 million service members have used these flexible, no down payment loans since 1944.
Often times VA loans are published and promoted as “no down payment,” often times this leaves veterans to believe they will not need any cash on hand to finish the deal. “Zero down does not mean zero to close,” says Tiffanie Flagler, CEO of the Flagler Real Estate Team in Columbia, SC. Tiffanie’s knowledgeable sales staff of professional realtors helps buyers understand cost that may be associated with the transaction! Our buyers don’t enter the process without being educated: We specialize in helping with VA loans and our trained realtors will guide you and help you estimate the costs you will need throughout the process!
“We save our veterans money and get them into a home that they’re happy with,” says Realtor® Tiffanie Flagler. The amount a veteran or active military personnel will need varies based on their status and location. Lenders suggests that VA loans can require up to 3% of the purchase price.
Here’s a break down of the cost associated in the home buying cost for both veterans and active military.
1. Credit report
The lender will pull credit and this usually cost the buyers about $30 when the loan application is done.
This is a standard fee and is nonrefundable even if the loan doesn’t close.
2. Earnest money
In order to purchase a home there is not requirement to pay earnest money. Earnest money is collected to show that you are truly interested and gives value to your offer which is key to the home-buying process.
Your earnest money says hey Mr. or Mrs. Seller I am a serious buyer and I want you to put a “hold” on your house and take it off the market for other buyers while I conduct the inspections and appraisal. Earnest money allows for you to have some skin in the game to assure sellers that you are not just putting in offers on several properties to take them off the market until you make a decision about which is right for you. You putting up money guarantees the seller that you are serious about moving forward with the purchase. “Most Sellers will not take their home off the market without earnest money” says Tiffanie Flagler.
Depending on the market you could be asked to put down anywhere from $1000 up to 10% of the homes purchase price in earnest money. In a bidding war or to stand out amongst the competition in a hit market you want to make sure you stand out with a large earnest money deposit. The money you invest in securing the home will be applied on your Alta statement as a credit towards any downpayment, insurance, taxes, closing cost or other fees that you may have to pay.
***Be advised that if the deal falls through you could lose some or all of your deposit depending on the circumstances!
3. Appraisal
AVA loans appraisal is required on all VA Loans to ensure that the property is acceptable based on the standards set forth by the VA’s minimum property requirements. An independent appraiser will be assigned to go out and do a full inspection of the property to include a calculation of the square footage and confirm that the property values at the price you offered. In addition they make sure that the property is safe and sanitary for you and your family. There’s also another perk, you get a second set of eyes after your home inspector is done to make sure that all the mechanical systems are operable and safe, that the roof is in good shape, and if the home has a basement or crawl space these areas will also be checked. Appraisal fees are usually collected upfront from buyers on VA loans but they may be refunded at closing.
4. Home inspection
A home inspection is optional and the cost will be solely the responsibility of the buyer. The cost will vary based on the square footage of the home. The Flagler Real Estate Team recommends that everyone purchasing a property conduct a home inspection even on new construction and a pest inspection on a resale!
Tiffanie Flagler states, “Home inspection are essential to our team because it gives not only our buyers but our Real Estate Agents peace of mind that we are protecting our buyers.” You don’t want to close move in and then discover defeats in the home that could cost you hundreds or even thousands of dollars when you could have negotiated these cost and had the seller pay them.
5. Recording fees
Recording fees will be assessed and you will see these charges on your Alta statement. The recording fee is paid to the county to record your mortgage in the public record, and the cost varies from county to county.
6. Real estate transfer taxes
The state,counties, and municipalities collect these taxes to transfer the title of the property from the previous owner to the new owner.
7. Title insurance
A title search is conducted usually by a company that the attorney who is closing uses. This title insurance policy protects you and your lender in the event there are title issues from previous owners of the home.
8. HOA fees
If you buy a home in an area where there is a required homeowners association, you will need to pay the application fee, which is variable depending on the local rules. Then there are your monthly or annual dues which will be prorated based on the day you close.
9. Loan origination fees
You will see an origination fee which is apart of your closing costs. The VA allows lenders to charge up to 1% of the loan amount to cover origination, processing, and underwriting costs.
VA loans are a great option for any veteran hoping to buy a house. The Flagler Real Estate Team just goes the extra mile to make sure our buyers are informed of the process and cost associated before hand so we avoid any surprises!
