You might be wondering how it is advertised that a VA loan is $0 down? Well, this is possible because, in an offer, we ask the seller to pay for your closing costs associated with the loan.
However, there ARE still out-of-pocket expenses you need to account for throughout the process. Let’s take a look at what those are:
Earnest Deposit: Approx. $1,000
This shows “good faith” and the amount will be negotiated in an offer. Be sure the money comes out of your bank account because the lender is going to track this. At the time of closing, you will see a credit back for your earnest amount on the settlement statement.
Home Inspections: Approx. $450
We recommend to all of our clients they complete a home inspection before closing. Don’t forget, a wind mitigation and a 4-point report are required for home insurance in the state of Florida. You can use a credit card for this expense.
Pest Inspections: Approx $85
A clean termite report is required for a VA loan. In most cases, you can use a credit card to pay for this expense. Because a VA buyer is not supposed to pay for this, you will see a credit back on the settlement statement at the time of closing.
Appraisal: Approx $500
An acceptable appraisal is required for a VA home loan. This can be paid with a credit card and will also be credited back on the settlement statement at the time of closing.
So Veterans, while it is true you can get the closing costs of your loan paid for by the seller, there are expenses that YOU are responsible for, technically making the VA loan NOT completely $0 down.
✅ As always, remember it’s a process, and we’re here to help 727-331-9565, www.thejonesyg....
19 сен 2024
