When you decide to use a VA Loan, you may be excited about the prospect…
When buying a home with the VA Loan, determining your eligibility is one of the first steps that you will take. You need to obtain your Certificate of Eligibility (COE) from the Department of Veterans Affairs and provide it to your lender. Some lenders are able to do this on your behalf.
After that, the home-buying process proceeds similarly to most other loans. There are a few extra steps, such as getting the home appraised and getting a detailed home inspection. But the paperwork preparation, legal contracts, and title documents are all required for a VA Loan just like they are with other mortgages.
These services and expenses are covered as part of closing costs. Closing costs include all of the work that is required to get the loan from application to closing. If any repairs need to be done, contractors are paid via closing costs. Appraisers, inspectors, legal teams, and other professionals are paid as part of closing costs.
When you negotiate with the seller, closing costs often come up. To make the deal for favorable, either the seller or buyer can offer to pay part or all of the closing costs. Typically, they are paid by the buyer unless otherwise negotiated.
Using a VA Loan does not change the setup of closing costs or who pays them. It will usually be the seller unless the buyer has taken on part or all of the expense as part of their negotiations. This will all be detailed in the purchase offer and the eventual contract between the buyer and seller. The real estate agent is one of the more knowledgeable when it comes to closing costs. Not only do they know what closing costs tend to run, they also know what is expected in the current market when it comes to who covers closing costs.