ALOHA!
Back in the day, there were Realtors® and Loan Officers that did not want to deal with VA Loans. Why? Because they're strict with their guidelines and criteria. When overpricing and overbidding were running rampant in all cities, VA remained the ever conservative loan for the Veteran of the Armed Forces.
I say Woohoo! Yeah! Great! It is with this criteria that has kept the VA Guaranteed Loan going and the only 100% financing loan in Hawaii that remains a good loan for the military and vet of the US Armed Forces. Remember, the VA Guaranteed Loan means that VA guarantees the lender a portion of your loan; they do not fund the loan.
Now a days you'll have everyone trying to solicit your business with advertising that they are the "VA Expert" or like me I say, "VA Home Loan Transaction Specialist". There are many pertinent parts to a VA Home Loan and Purchasing a Property in Hawaii so be sure your Realtor® and Loan Officer know their stuff!
- The Realtor® HAS to know the VA Transaction Process. Right now, they are so back logged with appraisal reports and so forth (because it is the one loan that is running rampant here due to our high volume of military presence) so we structure our contracts to accommodate the timeline. This agent keeps on top of all involved in the process.
- The Realtor® HAS to know which lenders and loan officers KNOW their VA Loans. Chances are the incoming member does not know a good loan officer and it is up to us to refer them to one that KNOWS THEIR VA LOAN. Just because someone has signs all over the place displaying their expertise in the field, does not mean it is so. The seasoned Realtor® has worked alongside
experts in the field and will refer you to a couple who know their stuff. - The Loan Officer HAS to be punctual and keep on top of the lender to get all parts of the transaction together. Ordering the appraisal quickly so they can get notice of a VA appraiser being assigned to the case is a start. For incoming personnel there are loads of other documents to retrieve as they are just arriving and their Honolulu County BAH will not automatically be in their LES (pay statement).
- The Escrow Officer has to know the process as well in case other parties need something from the other. We do not communicate with the buyer if representing the seller and do not sign documents all together. It's a conflict of interest and everything should be complete before signing anyway.
- The VA Buyer has to be realistic in their part of the process. If you are serious about buying your Hawaii Home, then keep an open mind. If the sq/ft is smaller than you'd hoped but you are able to buy at that lower price then it may be something to consider. Waiting for a later time and the interest rates may go up, the prices may start going back up or circumstances may not allow purchasing in ‘hopes' something will pop up. We don't have crystal balls but if you are seriously ready then hop off that fence.
- The Seller (or bank) has to be realistic in their part of the process as well. Prices are not going up! Sales numbers are down. Overpricing or being stubborn on the price may just lose a serious buyer. Your home may be the same floor plan as the another but your property is definitely not nicer....what do you do? You aggressively price your property to meet the needs of the market and get that home sold! And remember....VA loans are one of the best 100% financing loans out there!
Times have changed in the housing market nationwide. The VA Loan is now the most popular 100% financing loan for incoming military personnel to Hawaii and by far the most secure for lenders. Remember though, you still have to have money for closing costs (escrow & title fees, lender fees, prorated property taxes and so forth) but you may be able to have those covered by a seller credit if they are open to negotiating and getting off the fence too!
Let's all work together as a team to make each VA Loan Transaction go through smoothly for the Military Member and Veteran Relocating to Hawaii!
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More Information for the Armed Forces Member or Veteran:
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© 2007-2009 Celeste "Sally" Cheeseman's Hawaii Real Estate and Relocation Blog. All rights reserved.
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Celeste "Sally" Cheeseman is a Realtor-Associate with Century 21 Liberty Homes in Mililani, Hawaii. With a sharp understanding that a listening ear is the key to a client's needs she serves the island of Oahu (Honolulu County) and all Hawaii Military Relocating to Hawaii, Hawaii Retirees, Hawaii Job Transfers and Hawaii Residents. Website: www.hawaiihomesmarket.com
I have seen a few VA loans on my listing this year in SoCal. They just take a bit longer to put through but are a very good product.
Adam: It's always been a good loan program. But back when they were overpricing and overbidding you couldn't get some of these agents to believe otherwise!
Sally, Sally, Sally, if I were purchasing a home with the VA in Hawaii I would choose you to be my agent. No doubt! Your love of the business shines through and the positive attitude you carry is contagious. I can tell that I need to learn more about the process. Great post! Deb
Sally- First of all I would like to Ditto everything Deb said :) I cannot think of anyone that I would want to take care of my VA, or even regular sale than you! And I mean that. You appear to care about your clients, as evidenced in so many of your Posts. I also want to thank you, as an Honorably Discharged Veteran myself, for this timely Post...that has allowed me to meet my goal of **10,000** comments given back to our AR Community :) Thanks friend, and maybe I should just put some of your cards in the card rack at Loma Linda VA Hospital here in CA when I go tomorrow :) Good job of consistently supporting Vets :)
I'm sure that given the military presence there that vets retiring in the islands are loving it right now.
Sally, You are in the ideal VA market. Of the 32 transactions I had last year, only one buyer had a VA loan. Hopefully I will have more this year.
Sally as always great advice. VA Loans can be a nice easy and simple process for those who know what they are doing, but boy can it be a nightmare for those that don't.
Hey Deb: Great! Appreciate the nice compliment and surely I got a load of info!
Kathy: Congratulations! I got over to your post (after a long luncheon with kids and drive to listing) and I thank you kindly for all your support too!
Jeff: Great for them to utilize their benefits now....and they don't have to worry about everyone over bidding and stuff and knocking them out of the purchasing process :)
Leolinda: Well, looks like biz is good for you anyway! Are you near any bases?
George: I should have put it simply...it is an easy process if everyone involved KNOWS what they're doing...... I have had to 'teach' some agents on the other side of me during a transaction so it goes smoothly but that's okay...as long as it goes smoothly.
Sally - well you are clearly the VA loan expert agent in your neck of the woods. It really is important to know that these are taking longer and to prepare for that. And knowing how it all works is certainly a good idea. It took me 3 weeks for me to get the appraisal info once one was scheduled on a recent deal - they have 10 business days once contacted to do the appraisal.
Jeff
Jeff: They go out there...sure...uh huh...then three weeks to get the report in...and then the NOV (notice of value) from VA. Clearly 45 days AT LEAST to close on ones that used to take 30 days :) That's okay though...as long as it gets done!
Sally this was good to catch up on today. I rarely have a client that uses a VA loan. Good program though.
Sally- That is not an area of my expertise:) We just don't have many VA loans here in our part of Florida or anywhere I have been licensed. I think I can count on one hand the VAs I have been a part of. I am learning from you:)
Sally, As I read this I realize you not only have to know YOUR job (which is extensive), you have to know about others jobs as well to keep things going smoothly for your clients. I KNOW how hard you work for your clients and you'd be my choice as well if I were moving to work with. Just ask Mr. W how dedicated you are!
Aloha Sally,
No doubt you're the VA expert Realtor in HI. Back in the day myself, FHA and VA was about the only thing we used, everything else required 20% down, that was long before the "exotic loans" existed.
You can't believe the grief we would get when trying to submit a VA offer, too many listing agents were clueless to the process. It essential that buyers work with a REALTOR like you who knows her stuff.
Lizette: I guess you may not be near any bases then? There are vets all over though so keep a look out :)
Katerina: You just never know when you'll be in touch with a vet /military relocating to FL. ....they do reside everywhere :)
Carole! I hug you! Mr. W is doing fine...last year he fell down the stairs and broke his wrist but he's okay....I keep a look out for him...and talk to him from time to time :)
Hey Lynda: No kidding...and it's back this way now...I've done FHA as well (about the same kind of process) No exotic loans here. Too clueless and acting like it was the plague. Thanks Lynda....I do my best to know all angles. :)
WooHoo ! Wonderful job laying out the basics of the VA transaction from the different vendors involved. Brian Brady is doing a webinar this week on VA loans , I will get you details if you want to check it uot. Experts like yourself usualy seek others' perspectives about your own expertise. Brian is amazing in his training and really knows the subject as an expert lender. Well done post!
Sally great job. I know you hae the experience to get the job done. If I have anyone heading your way you are the one I would set them up with WOO HOO!
I do get tired of all these so called VA loan experts who have not idea what they are talking about. Especially the ones who tape their signs to the poles and trees along the side of the road. They must have come from the "We Buy Homes" crowd.
Sally - your post, once again, provides relevant information for the consumer! great job!
Hi Sally, I was going to comment on your post but got lost in the beautiful pictures...It's great to live in Paradise!
Oh, and I am with you! VA loans can be great if a person will just take the time to understand and noy be so lazy or resort to assumptions. Good info!
Very comprehensive and helpful. I'm on a VA financing campaign. Just getting it together and it will take a while. but it's time.
I didn't sell to military here for several years during the "bust" because I knew they'd lose money if they were transferred, but I believe it's safe now to look out 3 plus years.