VA Loans..The Few, The Proud, The Loans Closed in 30 Days !

No other loan has a slimmer margin of error than a VA loan. The benefits to the vet are enormous (no down payment, favorable terms). But, for a mortgage lender, there is no room for slip up if the file is to close within 30 days. The loan officer must have a "combat" mentality to handle this transaction. You are dealing with the federal government, and you must play by their rules. There are no favors to be found. The scope of this article is to give you a guideline for making this transaction happen as a sales agent and listing agent. Please note that the means of ordering the appraisal is critical.

During the initial scheduling of the appointment for an application, the Vet must locate his/her discharge papers. If the vet cannot find them, an immediate trip to VA office will save substantial time. As an agent, you might prep the client on the whereabouts of his paperwork.

Does the vet have enough eligibility to qualify? Is the funding fee to be 2% or 3%?

How much cash does the vet have?

Remember, the seller can pay all closing costs and pre-paids on a VA Loan. Please see the attached closing statement for $1000 total. Is there enough residual income for the household?

There is no last minute rush order from your appraiser of choice with VA. However, there is a critical choice to make. The lender can order an automated appraisal (LAPP) or a traditional. The difference is key to saving time. Under the LAPP system, an approved lender can order the appraisal directly, and the final report does not go to the VA for review. Instead, the report goes directly to the lender.

Under the traditional system, the VA’s policy is that no status calls will be taken until after 20 days from the order date. This compromises any chance to close within 30 days. Please refer to the chart below that documents the correct path.