Sellers want the highest price, fewest challenges and a high likelihood of the loan actually closing.
Longmont, CO (PRWEB) November 11, 2015
“Sellers want the highest price, fewest challenges and a high likelihood of the loan actually closing,” said Chad. “This is why a veteran is usually their best choice, as statistics support the fact that VA loans are a better option from both the buyer’s and seller’s perspective.”
In fact, according to Peoples Bank, the VA closing rate is 84 percent, compared to 76 percent for both conventional and FHA loans. Additionally, Chad states that many sellers still believe the old wives’ tale that VA appraisals are too low or stringent, when in fact the Tidewater Initiative can be utilized, which is only used in VA loans.
“With a VA appraisal, you have the opportunity to dispute the home’s value with the Tidewater Initiative, which gives the lender, the one that is working with the buyer that is purchasing a property using a VA loan, notice of having two business days to run comps and provide them to the VA appraiser for their review,” said Cindy. “With most conventional and FHA appraisals, a low value may be very difficult to dispute and with a FHA appraisal the value will stay with the home for 120 days, leaving the seller stuck with this value.”
Another major misconception is that there are non-allowable costs that the VA borrower cannot pay for and the seller is required to pay. There are, however, loan-associated costs that the VA borrower is not allowed to pay for as restricted by the Veterans Administration, but the seller is not required to pay for them.
“Having an experienced lender and real estate broker is vital in this area,” said Cindy. “Some lenders take care of these costs, which are not passed on to the seller or any other party. To address the non-allowable closing-cost topic, the lender can actually give a ‘Lender Credit’ to offset the fees in question, and Peoples Bank assumes these costs for the veteran which doesn’t obligate the Seller to pay these fees, which in turn allows the seller a higher net profit from the sale of their home.”
Chad further states that many non-veterans underestimate the commitment made by a veteran when they volunteer for service, a commitment that says, “I will give everything I have including my life in defense of my country.” This commitment isn’t taken lightly.
“Furthermore, when a Seller receives a commitment from a Veteran Buyer to purchase their home. They can be assured of the level of commitment given by the Veteran,” said Chad. Sellers can count on a VA borrower to follow through and not leave the Seller in a bad situation by terminating the contract four days prior to closing because “they found a better home.”
About Chad Patterson, RE/MAX Traditions
Chad Patterson, of RE/MAX Traditions, is an expert in more than just helping veterans find homes; he also specializes in helping first-time buyers and sellers, is a real estate divorce specialist and is a Certified Negotiation Expert (CNE®). For more information, Chad can be reached at (970) 518-5462. Follow Chad on Facebook and Google+. The office is located at 2204 18th Ave., Longmont, CO 80501.
About Cindy Vaughan, NMLS #777175 | Peoples Bank
Cindy Vaughan is a Senior Mortgage Banker at Peoples Bank, a family-owned and community driven bank. Cindy has been a Mortgage Banker for 10 years she can be reached at (970) 405-2185. Her office is located at 825 Delaware Ave., Suite 100, Longmont, CO 80501.
Equal Housing Lender | Member FDIC | Peoples Bank NMLS #603403
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