Selling Your Round Rock Home to a VA Buyer
If you are listing your home in Round Rock, there is a high probability you will receive an offer from a buyer using a VA loan. Let's debunk the common myths surrounding VA loans to help you make the best decision for your sale.
Debunking VA Loan Myths
Myth 1: VA Loans Take Too Long to Close
- Reality: VA loans close in the same 30 to 40 days as conventional loans when working with an experienced lender.
Myth 2: The Seller Has to Pay All Closing Costs
- Reality: While there are certain 'non-allowable' fees the buyer cannot pay, these are typically minor ($200-$500) and can easily be offset in the purchase price.
Myth 3: VA Appraisals Are Unfair
- Reality: VA appraisals look for safety and soundness. If your home is in good condition, it will pass with zero issues.
Understanding VA Loan Assumptions: A Powerful Selling Tool
In a high-interest-rate environment, a VA loan assumption is an incredible selling feature.
- The Feature: A buyer can take over your existing VA loan, inheriting your lower interest rate.
- Eligible Buyers: Both veterans and non-veterans can assume a VA loan, though selling to a veteran allows you to release liability and fully restore your VA loan entitlement.
Preparing Your Home for a VA Appraiser
To ensure a smooth appraisal process, make these quick fixes before listing:
- Ensure all handrails are secure.
- Repair any peeling or chipping exterior paint.
- Double-check that smoke and carbon monoxide detectors are operational.
How to Screen VA Loan Offers Effectively
When you receive multiple offers on your home, look at the entire contract rather than just the financing type:
- Pre-Approval Quality: Ensure the buyer's VA pre-approval letter is from a reputable, established lender.
- Lender Contacts: Have your listing agent call the lender to verify they have fully reviewed the buyer's Certificate of Eligibility (COE) and credit history.
- Concession Structure: Review if the buyer is requesting seller concessions, and balance that against the final purchase price offer.
Frequently Asked Questions
Some do due to misconceptions, but VA loans are highly reliable and close just as quickly as conventional loans.
Yes, a buyer can pay the difference in cash if they choose to do so.
Sellers can contribute up to 4% of the sale price toward a VA buyer's closing costs, making the listing highly attractive.
