Let's Do Better!

Picture a young couple relocating from Florida to the DC area for work. The husband is in the US Army and the wife is a consultant who travels frequently. They own a home in Florida that's on the market and they're looking to buy a condo, townhouse or house in the northern Virginia area.

Their preferred loan program is a VA (Veterans Affairs) loan which allows eligible active military and Veterans to buy a home with as little as $0 down. Their financial profile is well suited for the VA loan program. Their real estate agent has toured more properties than he cares to admit. I've run multiple financing scenarios for them and written several pre-approval letters. I've lost count honestly.

What gives? The VA loan is often misunderstood in the real estate community for a variety of reasons:

• There is a perception that VA appraisers are much more stringent than appraisers for conventional and FHA loans. Because of limited to no down payment, the VA doesn't want to put VA home buyers in a situation where they need significant resources for repairs. Yes, VA appraisers are concerned about HEALTH and SAFETY. They're not trying to foil the transaction.
• There's a belief that if the property doesn't appraise for the agreed to sales price, the transaction is done. VA buyers can choose to "bridge the gap" between sales price and appraised value. Some VA buyers have significant resources but choose low to no down payment to preserve cash.
• VA loans take longer to do. This simply isn't true. The VA appraiser does have 14 days from order date to complete the report. Some take 14 days, others take a lot less time. It's still possible to close a VA loan in 30 days or less especially if the buyers have already been pre-approved. That is the case for these buyers.

Alright what does this have to do with "Let's Do Better?" It's the comments the agent representing the buyers has heard from agents representing sellers. They have ranged from "I'll do everything not to accept a VA loan" to "there's no way the seller will consider a VA offer given the many offers on this house". Really? This is the attitude towards those that are serving or have served our country? I get it's the listing agent's responsibility to get the best price for the seller. At what cost? As I write this, my last conversation with a listing agent was that she understood the situation of the clients' past failures. She went to say that it's ultimately up to the seller. My sincere hope is that these buyers will get a home soon. "Let's Do Better" should exist in all aspects of our life.

Thought for this week and beyond: "Give every day the chance to become the most beautiful day of your life" - Mark Twain

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