It’s no secret that the housing scene is extremely competitive right now. Low mortgage rates have led to an increased number of buyers and a shortage in inventory. This has driven up home prices and even led to bidding wars. In many cases, buyers have been outbid by cash offers.
The increased competition has also made it very difficult for buyers with government-backed loans to purchase a property. And unfortunately for service members and Veterans, this includes VA loans.
Sellers want to get the largest amount of money they can, as quickly as they can, with the least amount of hassle. And government loans often involve a longer and more complicated closing process.
But that doesn’t mean VA borrowers are totally out of luck. Below, we’ve shared some tips for how buyers can stay competitive when buying a home with a VA loan in 2022.
Tips for Buying a Home with a VA Loan in a Competitive Market
VA borrowers are facing a lot of competition right now. Not only are they having to compete during a time when there’s a major supply shortage in homes for sale, but they also need to ward off competition from other buyers looking to take advantage of the current low-interest rates. Here are some strategies you can use to increase your chances of having a seller accept your offer:
- Work with a VA lender: When the competition is fierce, you need all the help you can get. That’s why we highly recommend working with a lender who specializes in VA loans. A VA lender will be able to walk you through your options and help problem-solve when difficult situations arise. Also, a lender who is familiar with the VA’s process can help ensure that things go smoothly up until closing so there are no delays that would allow the seller to back out.
- Put money down: One of the benefits of buying a home with a VA loan is that you don’t have to make a down payment. But in a competitive market, you may want to do so anyway. This is because, in some states, sellers can see how much a borrower is putting down. They’re more likely to accept an offer with a larger down payment because there’s less risk. If the home appraises for under the asking price, then they know that the borrower has the cash to make up for it.
- Make a strong offer: VA borrowers can also stay competitive by putting forth their best offer. There are several ways that you can do this, and your real estate agent will be able to advise you on the best option. You can offer more than the seller is asking for, or even make a higher earnest money deposit. These are great ways to make your offer stand out.
Mortgage Solutions Financial Is Here to Help
Buying a home with a VA loan? We’re here to help. Let us help you pursue your dream of homeownership in 2022. Call today to get connected.