Berkshire Hathaway HomeServices TX Realty
141 E Mercer St
Dripping Springs, TX
Phone: +1 936/5373356 +1 936/5373356
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Make your home more attractive to potential buyers. A sparkling clean appearance gives the impression that your home has been well-maintained and cared for over the years.
Please note I am not an attorney- legal questions are best answered by those whom are trained in such
Q. Does the VA loan me the money to buy a home?
A. No. The VA provides veterans a home loan "guarantee" which means they "insure" the financial institution which is giving you the loan. In layman's terms, the VA co-signs the loan for you thus giving the lending institution (e.g. bank) recourse for repayment should you default on the loan.
Q. I want to buy a home but don't really know where to begin.
A. Step 1- find a good REALTOR®. If you think a real estate agent just opens the doors to a home, then you are setting the expectations too low. A good agent (especially one that deals with Veterans) will be able to "walk you through the process" from start to finish. Step 2- work with a lender to determine the home you can afford.
Q. I found a house to buy but the agent says they don't think a VA loan is right for me. What should I do?
A. Well, find a new agent. You earned the right to use the VA home loan guarantee and to purchase a home with little to no money down- don't let someone talk you out of it. In my experience, most agents that don't understand the VA loan process may try to dissuade veterans from using it simply because they (the agent) don't understand it.
Q. So I can purchase a home for $0 using my VA loan guarantee, right?
A. Don't be deceived. It costs some money to buy a home [at least up-front]. For example, you must put some money into escrow (a.k.a. Earnest money). This can be as much as a couple of thousand dollars in some places. You also will need money for inspections, appraisal, etc. I generally tell first-time homebuyers to have about $2000 to get going [in my area]. It may be less, may be more, in your area. That is why having a local expert helps.
Q. So what does the VA do for me in the home buying process?
A. They guarantee the loan and have certain standards that must be met (to ensure the quality of the home). The VA does very little else in the process. See the story below.
Q. NEW. I saw a home on website X and it gave a "home value" much higher than what the seller is asking for the property- is it a really good deal?
A. Most real estate website have some computer-generated home value. MOST ARE NOT ACCURATE. Each website has a system for generating a "home value". It could be based on tax records, recent sales in the area, or some other - completely arbitrary- formula. My advice is to disregard ANY home value on websites. They are normally not accurate for the property in question.
True [sad] Story:
I received a call from a veteran who purchased a home that is - well - a lemon. He realized that once he moved in that it had black mold, a bad foundation and other problems. He wanted to know what the VA would do to help him. Sadly- the VA will not be able to help. They guarantee the loan- they are not going to send attorneys to help you fight a battle. HE DID NOT USE A REALTOR® who might have caught this NOR did he get the home inspected by a professional inspector (as any good real estate agent would advise). It was now his problem to fix. A horrible way to start a first-home purchase.
IF YOU ARE BUYING A HOME- I CAN'T SAY ANYTHING MORE THAN USE A REPUTABLE REAL ESTATE AGENT. In most cases, it costs you nothing- not using an agent can cost you plenty!