In order to buy a VA acquired property, there are several steps that a buyer must follow:
1) pre-qualification, 2) find the property, 3) make an offer, 4) close on the property
1) Pre-Qualification
Normally with the assistance of a qualified loan officer, the buyer identifies the loan options, any potential financing hurdles (such as credit issues), and the maximum loan amount one may qualify up to.
2) Find the Property
In order to view a home on the VA home list, a buyer must use a VA qualified real estate broker. Properties are on special lock boxes that only qualified agents have access to. Properties are available for viewing only during the competitive bid period. (Per VA guidelines, "There must be no use of toilet facilities").
3) Make an Offer
Once a VA acquired property has been identified, only a VA qualified real estate broker can submit an offer for a buyer. A buyer may submit offers on more than one property. However, the broker is required to obtain a $1,000 earnest money deposit for each offer (if an offer is accepted, the earnest money is non-refundable unless the buyer is declined for a loan). Only one offer can be purchased by an owner occupant buyer.
4) Close on the Property
Buyers are required to close within 22 days for VA Vendee Financing, 30 days for all cash purchases and 60 days for other types of financing.
