Realtors, brokers, VA loans - first time home buyer

[DannoXYZ]

Originally Posted by 951dude

We're in the housing bubble of a lifetime. Id wait a few more months

Originally Posted by insyder

Ditto.

yeah! Unemployment and bankruptcies on rise. Many people overbought their houses. New lockdown orders. We're ripe for crash in multiple markets. You'll know when crash happens and prices will be much more favourable. Heck, I bought my place in 2009 for 35% less than it would've cost in 2008.

There's delicate balance between down-payment and mortgage payments. You'll have to run what-if scenarios based upon what that difference would earn you. I'm up 53% for past 12-months in my investments. So there's balance somewhere such that I can maximise my net-worth growth by paying certain % down to lower my mortgage payments so extra cash can go into investments and make higher return.

[Ogg]

Originally Posted by Kornholio

Pete,

stuff about VA loans

I've used VA loans twice without issue, both times with 5% down to get a better overall rate. If you qualify for a VA loan, then you also likely qualify for membership @ military-related credit unions. In addition to their experience underwriting VA loans, they also tend to have the best mortgage rates.
At last check, Navy Federal was lowest by a significant margin.

I used NavyFed in a non-VA transaction last October - generally a great experience.

[berth]

The reason folks talk about VA loans, is apparently as a "bank" they're pickier on appraisals and inspections and such. They're just a bit fussier about it. That's what our Realtor said, simply that there's more of a chance of escrow failing because of the VA (vs the buyer) than with a normal bank.

How much more of a chance? I don't know. I don't recall if we sold to someone with a VA loan or not, I just recall it wasn't a real consideration for our offers (i.e. we're not rejecting it because of the VA, but because someone else offered more XXX).

[Yakoo752]

Could you buy with a traditional loan and refinance with a VA?

I'm sure there are cost implication but at $1M are they substantial?

[FLH03RIDER]

Originally Posted by Yakoo752

Could you buy with a traditional loan and refinance with a VA?

I'm sure there are cost implication but at $1M are they substantial?

This might be a helpful place to start regarding a refi:
https://www.va.gov/housing-assistanc...ns/loan-types/

[Akira-R]

Ask if anyone has died in the house.
Check all the faucets for buildup/signs of hard water. They may have a water softener already, but if they've just installed it recently the pipes may not be in the best shape. The faucet buildup might be a sign of that.

If it matters to you, check the PGE zone and see if it's in a zone that doesn't get rolling brown outs.
Check what internet services are available for that location.
Check your phone carriers signal in the area, and in the house if you inspect it.

I'll also +11billionty on overlapping rent with closing. If possible, try to work out a month to month. I recently had a buddy whose contractor and team got covid. This was already on top of being slow. Shit will never line up end to end. Make sure you aren't forced to move in before it's ready.

[littlebeast]

Originally Posted by berth

The reason folks talk about VA loans, is apparently as a "bank" they're pickier on appraisals and inspections and such. They're just a bit fussier about it. That's what our Realtor said, simply that there's more of a chance of escrow failing because of the VA (vs the buyer) than with a normal bank.

How much more of a chance? I don't know. I don't recall if we sold to someone with a VA loan or not, I just recall it wasn't a real consideration for our offers (i.e. we're not rejecting it because of the VA, but because someone else offered more XXX).

is this because of the low (and no) downpayment requirements on VA loans? it may be a function of their lending practices. due to them generally funding a higher precentage of the purchase price than the average bank, it would make sense if they are concerned that the property may appraise lower than the loan amount - in which case they’d focus heavily on the appraisal and inspection results.

Originally Posted by Akira-R

Ask if anyone has died in the house.
Check all the faucets for buildup/signs of hard water. They may have a water softener already, but if they've just installed it recently the pipes may not be in the best shape. The faucet buildup might be a sign of that.

If it matters to you, check the PGE zone and see if it's in a zone that doesn't get rolling brown outs.
Check what internet services are available for that location.
Check your phone carriers signal in the area, and in the house if you inspect it.

I'll also +11billionty on overlapping rent with closing. If possible, try to work out a month to month. I recently had a buddy whose contractor and team got covid. This was already on top of being slow. Shit will never line up end to end. Make sure you aren't forced to move in before it's ready.

IIRC this is legally required to be disclosed (a box on the mandatory disclosure form).

[Abacinator]

Curious, why does it matter if anyone has died in the house?

[tfkrocks]

Oh that's right, that's the other thing that was mentioned to me was that you can only get a VA loan up to the appraisal value so you'd be SOL if the market value is higher, which is a likely concern in the Bay Area.

[Ogg]

Originally Posted by littlebeast

is this because of the low (and no) downpayment requirements on VA loans?

The VA doesn't make the loan, they insure/guarantee the loan (for something like 80% of the value of the loan). Typical loan underwriting is more focused on ability/likelihood to repay. The VA part of the underwriting is more along the lines of insurance underwriting, so they're more concerned about the resale value if you default, some of which is driven by conditions like age of roof, etc.
Think of it as cheap/free PMI for veterans.

Originally Posted by tfkrocks

Oh that's right, that's the other thing that was mentioned to me was that you can only get a VA loan up to the appraisal value so you'd be SOL if the market value is higher, which is a likely concern in the Bay Area.

That's generally true of any lender/loan, not specific to VA-backed. The appraisal, of course, is supposed to arrive at market value. Yeah, I get that "market value" is whatever a third party is willing to pay in an arm's length transaction, but the mortgage industry puts the appraiser in the middle as a hedge against that third party being an idiot overly optimistic

Edit: Better way to say this... You've done an appraisal, even if just in your head, to arrive at FMV from your point of view. As a partner in the transaction, the lender uses the professional appraiser to decide what they think FMV is. The lender is only willing to be a party to the transaction if you use the lender's estimate of FMV.

[DannoXYZ]

Originally Posted by Abacinator

Curious, why does it matter if anyone has died in the house?

Ghosts.

[Yakoo752]

Originally Posted by tfkrocks

Oh that's right, that's the other thing that was mentioned to me was that you can only get a VA loan up to the appraisal value so you'd be SOL if the market value is higher, which is a likely concern in the Bay Area.

Never had that problem