A seller rejected my VA loan offer. What can I do now?
You found your perfect home. But the seller rejected your VA loan offer on the grounds that VA loans are too troublesome.
That seems to be online installment loans LA happening more and more. And yet there’s no good reason for it. Because VA loans are as good for a seller as any other type of mortgage.
This happens because some sellers – and even their agents – harbor misconceptions about the VA loan program that make them hesitant to accept VA offers.
In this article, we’ll explore those myths along with the best ways to negotiate and get your VA offer accepted.
Why don’t sellers like VA loans?
Many sellers – and their real estate agents – don’t like VA loans because they believe these mortgages make it harder to close or more expensive for the seller.
But those issues are largely myths stemming from the past. VA loans have changed a lot in recent years and now, they’re generally no more difficult or expensive for sellers than any other loan.
- Are less likely to close than other types of mortgages
- Take ages to reach closing
- Have appraisers who are slow and routinely undervalue homes
- Require sellers to cover all the buyer’s closing costs
2021 data shows that VA loans only take a few more days to close than conventional loans on average. And the idea that sellers have to pay closing costs for VA buyers is simply untrue.
In short, there’s no reason a seller should reject your purchase offer simply because you’re using a VA loan. But, due to misinformation, some might anyway.
6 Tips to get your VA loan offer accpeted
There are a number of steps you can take to help get your VA loan offer accepted – even by a wary seller. But it will take some forward planning and negotiation.
Start by retaining a buyers’ agent who is really experienced with VA loans. This agent represents your interests for free (the seller almost always pays all agents’ fees, but double check when you appoint your agent).
When the agent comes to submit a VA loan offer for you, they can explode any false beliefs about VA loans that the seller and seller’s agent might have.
If you get to meet your seller in person, head off later problems by talking through how the VA loan works. Yes, it provides buyers with extraordinary privileges. But the mortgages are 100% legitimate, government–backed loans. And you earned every one of those privileges through your service to your country.
2. Find a responsive lender
Choose your VA lender with care. Yes, you want a great deal on your mortgage. But it helps to have a loan officer who’s happy to field calls from listing agents. Ten minutes on the phone with a loan officer can turn a listing agent from a VA–loan skeptic into an advocate for them – and you.
Some suggest that using a local lender or broker can be helpful. Because listing agents feel more affinity with people they might meet in person. But don’t end up paying a significantly higher rate and closing costs than necessary just to keep your loan local.
Some sellers and listing agents are freaked out by the idea that VA loans require no down payment. They assume that you’re not a serious homebuyer if you’re not putting down 3% or more.
This is, of course, rubbish. But, if you have plenty of savings or are a repeat buyer with sufficient equity, you might dodge this prejudice by making a bigger–than–necessary down payment. And it might improve the chances of your VA loan offer being accepted.