VA loans come with unique advantages and requirements. Finding a real estate agent that understands this mortgage can make home buying easier.
If you are a veteran, active-duty military or the spouse of someone who is, using a VA loan for your next mortgage gives you a lot of earned advantages, but they also have something of a reputation in the industry for being slower to the closing table. But that in no way means you shouldn't use them. Finding the right real estate agent can help you get your offer accepted; that is, if they understand the needs of the military community and how to appeal to sellers’ wishes.
This is likely the biggest transaction of your life: You want to partner with the right professional who’s looking out for your interests.
Here’s how to make the right choice.
Your real estate agent doesn’t need to be an expert in VA loans. That’s your lender's job. But you do want an agent who knows the basics of VA loans, including the property requirements and the challenges VA borrowers sometimes encounter when making an offer.
“If the agent you choose has experience with VA loans, they should be able to determine if the property meets these requirements before you make an offer — saving you both time and money in the process,” said Jake Kraft, former director of agent relations for Veterans United Realty in Columbia, Missouri.
Buying a home is technically a business transaction, but it’s an emotional process. You want to feel comfortable with your agent and confident that they understand your unique needs as a VA borrower.
That’s why experts recommend choosing a real estate agent who has experience working with veterans and active-duty service members. This person should have experience recommending neighborhoods based on their client’s lifestyles, proximity to bases, school needs, and desired amenities.
“A knowledgeable real estate agent will also understand specific needs, such as housing and adaptive renovations for veterans with disabilities,” said Tyler Forte, co-founder/CEO of Felix Homes in Franklin, Tennessee. “Military members who are relocating to a new area also need a skilled agent who is well-informed about the community.”
Another reason to find a military-friendly real estate professional is for the incentives available to these home shoppers that aren’t available to others. An agent savvy in VA loan requirements can be a real asset in your home search.
Finding a real estate agent who fits your circumstances may take a little time, but the effort is worth it.
Use these tips to jump-start your search:
“It’s a good idea to interview at least two or three real estate agents to find the right match,” Forte suggested.
According to Healy and Forte, these are the questions to ask an agent candidate:
“As with any other real estate agent, you want one who will be responsive and knowledgeable about your chosen market and its conditions,” said Brian E. Adams, a licensed real estate agent and former Army captain in the Fort Hood, Texas market. “Additionally, look for an agent who has Military Relocation Professional (MRP) certification from the National Association of REALTORS®.”
Furthermore, try to select an agent who has great communication skills and is responsive when you have questions or concerns — not just when you’re house-hunting, but all the way through the closing process.
There’s no perfect way to find a home, but enlisting the right expert from the get-go is a good place to start, which begs the question: Should you choose a real estate agent or a mortgage lender first?
Many borrowers start by talking to a lender first to get pre-approved and find out how much they can borrow. Your lender can also look up your VA Certificate of Eligibility. This document verifies whether you have full entitlement and can qualify for the VA loan’s zero down payment option.
"Most real estate agents won’t start showing you properties until you are preapproved or prequalified with a lender," Kraft said.
Therefore, talking to a lender is a practical first step.
Plus, a lender can also refer you to real estate agents. This can make the search easier for you, especially if they know of agents with experience working with VA borrowers.
“It’s recommended to speak with a VA-specialized lender first before selecting an agent. This will give you an understanding of your purchasing power and ensure there are no issues that will prevent you from obtaining financing,” Kraft said.
On the other hand, if you’re having difficulty finding a VA lender, it may be beneficial to choose an experienced real estate agent first who can refer you to VA lenders they’ve worked with.
How do I find a trustworthy real estate agent? You can find a good real estate agent by asking for referrals from your VA lender, reading online reviews, and asking friends and family about the agents they worked with when buying their homes.
How do I contact a real estate agent? Real estate agents often list their contact information on their websites, on real estate marketing materials, and “For Sale” signs on the properties they represent. You can call, email or text an agent to establish contact.
Do you find a lender or a real estate agent first? It’s a good idea to talk to a lender before finding a real estate agent. Many agents these days require a pre-approval letter, which you’ll need to get from a lender. A lender can also recommend good real estate agents in your area, possibly even ones who have experience working with homebuyers whose circumstances are similar to yours.
It’s crucial to recruit the right professionals on your homebuying journey. Your real estate agent is one of those key professionals.
“A real estate agent experienced with VA loans will avoid making common mistakes like forgetting VA requirements or trying to waive a home appraisal, which the VA doesn’t allow,” Adams says. “They’ll be aware of all the nuances involved and will ensure you close on time and don’t lose your deal.”
*A down payment is required if the borrower does not have full VA entitlement or when the loan amount exceeds the VA county limits. VA loans subject to individual VA Entitlement amounts and eligibility, qualifying factors such as income and credit guidelines, and property limits. Copyright©2024Fairway Independent Mortgage Corporation. NMLS#2289. 4750 S. Biltmore Lane, Madison, WI 53718, 1-866-912-4800. Fairway is not affiliated with any government agencies. All rights reserved. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply. Equal Housing Opportunity.
