The VA home buying process can be confusing. Find some answers to commonly asked questions here:

• What is the 1st step in the home buying process?
The best 1st step you can take is to consult with a loan officer that is experienced in handling VA loans in San Diego. Many times you can find a loan officer that is out of area that may offer lower rates to entice you, but we have found by experience that for the most part you will not get as good of service and local information from these lenders. During your consultation with a good loan officer you will be able to get a good idea of how much it will cost to buy a home, what documentation the lender will need, and what you can do to be better prepared to get a great loan.

• What is needed to get pre-approved for a VA loan?
You will need to have your credit run (the loan officer you consult with can help you with this), provide one month of paystubs or one LES, W2's for two years, and two months of checking account statements.

• How much money do I need to purchase a home?
In order to make offers on homes you will need an earnest money deposit of $1,000 to 1% of the purchase price depending on what is negotiated with the seller. Once you have an accepted offer you will need to pay for a professional home inspection which can cost between $250 and $550 depending on the home. Also once you have an accepted offer on a home you will have to pay for a VA appraisal through your lender this is typically around $500.

• Will the VA finance any home?
The VA wants to make sure that the home you are buying meets a few basic requirements. The roof needs to be free of leaks and have at least two years of life left. The foundation and structure must be sound and free of major cracks. The home must be free of health and safety issues. Floor coverings must be on all floor surfaces. The VA appraiser (this is separate from the inspector you hire) will inspect the major components of the home and require any needed repairs to meet the VA standards before the close of escrow.

• Will I have to pay closing costs?
Typically the closing costs that a buyer is responsible will be 2-3% of the purchase price. Many of our VA clients are able to have us negotiate a credit for this amount to be paid by the seller.

• Can I use my VA loan to buy a condo?
You can use your VA benefits to buy a condo or townhome in San Diego if the complex is on the VA approved list (we check this as we search for homes to show our clients). If a condo is not on the VA approved list, but is on the FHA approved list it can be added to the VA approved list.

• I have already used my VA benefits to buy a home. Can I use them again?
You can use your VA benefits over and over again as long as the balance is paid off. Your VA funding fee of 2.15% for first time use goes up to 3.30% the second time. This fee can be financed into the loan amount so it does not have to be paid in cash.

• If I have more than 10% disability are there any additional benefits?
Yes, with 10% or more disability your funding fee is waived.

• Can every REALTOR help me to purchase a home using my VA benefits?
Yes any REALTOR can help you, however buying a home as a VA buyer is a complicated process and you are very likely to have a poor outcome if your REALTOR is not a VA specialist with many clients and a good amount of experience. When you interview agents you should ask them to show you how many VA buyers they have helped to purchase homes.