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We have been approved and have a comittment letter from our lender and we are doing a VA loan. Even though we have the comittment letter, could VA still deny the loan? I mean, I know VA has to appraise the house and if the house's purchase price is more than the VA appraisal, they won't approve it, but is there any other reason VA might not approve the loan?
Location: central, between Pepe's Tacos and Roberto's
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It's not just value with the appraisal but condition as well. VA has some of the highest property standards out there, of course to protect the borrower. And of course if anything significant were to change with the application such as a change in job, a change in income, anything like that.
So theoretically, we should be ok since we are having a house built and we will have it inspected prior to closing so the condition shouldn't be a problem. Dh is also a SFC(p) not likely to get demoted and not going to retire for another 3 years. This is our first home so I think we've jumped through all the hoops, and I know since we are building a house the mortgage lender will verify employment and check credit again before it's completed. We've actually paid off a couple of credit cards and paid down on a few bills to reduce the balances so hopefully that will help, not hurt. I am just nervous I think that somehow VA would go behind the lender and say NO for some reason.
I am currently going through the process of a VA loan and trying to buy a foreclosure, now thats fun stuff. LOL your right they have very high standards.
I am currently going through the process of a VA loan and trying to buy a foreclosure, now thats fun stuff. LOL your right they have very high standards.
lol...We are looking at doing the same thing. We are in the beginning phases of putting in a contract though. This seems like it will be more interesting than when we bought a forclosure with a FHA loan.
So theoretically, we should be ok since we are having a house built and we will have it inspected prior to closing so the condition shouldn't be a problem. Dh is also a SFC(p) not likely to get demoted and not going to retire for another 3 years. This is our first home so I think we've jumped through all the hoops, and I know since we are building a house the mortgage lender will verify employment and check credit again before it's completed. We've actually paid off a couple of credit cards and paid down on a few bills to reduce the balances so hopefully that will help, not hurt. I am just nervous I think that somehow VA would go behind the lender and say NO for some reason.
Mrs C, truth is anything can throw a house purchase off track which is why the realtors wait until the deal is done before breaking out the champagne.
A house inspection can derail a house purchase but what NORMALLY happens is that the inspector finds some things, home owner fixes them, and life continues on the home sale. Some additional items are required for a VA loan vs. other loans. Example is that the garage ceiling must be finished (have no idea why). An experienced realtor should be que-ing on your nervousness and calling you more often to keep you in the loop vs. an experienced buyer.
I have never heard of ANOTHER credit check once you're in the 'approved status'. The VA loan process does take longer than other loans (everyone in the business knows this and it's okay). The VA loan is great in that the seller has to pay a few costs, a lot of the costs are wrapped into the loan, there is no PMI, and the rates are usually pretty competitive within the market rates.
i've done two VA loans, one built on spec, one purchased from "new inventory."
they've gotten better and much quicker between the two purchases
biggest stoppers would be flood zones, under appraisal and over appraisal -- so I hear that's a problem in this market, my builder who added some things on concession was very worried the house would appraise way over the sale value, and the VA would get suspicious. It appraised a littler higher than we expected, but the VA didn't blink.
I *think* they will look at your plans in the construction phase?
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