There are a few things to keep in mind when selling your property to someone who will be buying with a VA loan. But overall, it’s just the same process as working with a conventional mortgage buyer.
VA Loan Home Selling Guide must work with an experienced real estate agent and lender who understands the VA mortgage approval process. Lenders will run credit reports to confirm a buyer’s eligibility and then evaluate the borrower’s finances, including income and debt-to-income ratios, to determine their capacity to pay for the home. Then, the lender will order a VA appraisal to ensure the property meets a list of Minimum Property Requirements.
VA Loan Home Selling Guide: Everything You Need to Know
Once the home passes the VA appraiser, the mortgage lender can approve the loan. Then, the borrower can sign closing documents and move into the new home.
Sellers may be concerned that VA-backed buyers will take longer to close on a sale than other buyers, but it’s important to remember that there are many factors at play. For example, military personnel often travel or deploy and can’t be present during much of the transaction. In those cases, the borrower can use power of attorney to sign documents on their behalf and speed up the closing process.
In addition, sellers should know that a VA borrower’s financial profile is generally more robust than those who buy with conventional financing, meaning they can often qualify for loans with lower credit scores and higher debt-to-income ratios. For those reasons, it’s unfair to exclude VA-backed buyers from the buying pool.
