How to Write a Winning Offer if You Are Using a VA Home Loan Program

Updated: Jun 26, 2021

It's a red-hot, sizzling, super seller's real estate market right now. Many buyers are frustrated because they keep getting out-bid for the homes they put offers on. This is especially true for buyers who aren't paying cash or using conventional loan programs and putting 20% down. Many sellers aren't fans of Veteran's Affairs (VA) home loans right now. They feel that buyers who use these programs aren't financially strong buyers. It's time to educate sellers about VA home loans. There are tips to use when writing a winning offer if you are using a VA home loan program.

Prove Your Financial Strength

When your real estate agent submits your offer, be sure to include a pre-approval letter from one of the best VA home loan lenders in your area. Ask your lender to speak directly to the seller's agent to explain your VA home loan eligibility. Have your VA home loan lender explain that you have your Certificate of Eligibility (COE,) that the loan is strong because it's government-backed and that you can close in as soon as three weeks. This should show the seller that you are just as strong as a homebuyer obtaining a conventional loan.

Offer Above Asking Price

Homes are selling at or above listing price all over the country. Ask your real estate agent to prepare an analysis of recently closed homes in the area you are looking, so you can see how much above asking price homes are selling for. Of course, keep in mind that the home has to appraise. The home has to meet certain criteria for a VA home loan. It has to appraise or the government will not back it. Since a VA home loan requires no money down, the government is backing the purchase price one hundred percent.

Closing Date

Offer the seller the closing date of his choice. If you make the transaction convenient for the seller, he is more likely to choose your offer.

Personal Property and Other Extras

Do not ask for any personal property in the home that the seller is not already leaving. This can include furniture, decorative mirrors, pictures, decorative shelves and so on. Also, do not ask for the seller to buy you a home warranty as part of the transaction. You can always purchase one for yourself after you close.

Ask your real estate agent if there is anything else that will make your offer strong. Hopefully the seller will respect you for serving in the United State military and honor your offer.

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