I got preapproved for a VA loan through USAA. Most of the properties we are looking at and consider acceptable enough to offer on are just outside or right at our max budget. So, we either have to come up with a bigger down payment, or negotiate for a better price. I understand all that just fine, but to fine tune my strategy, I need some more info:
The way I understand utilizing the VA loan, the max I can get is 95% of a homes appraised value, correct?
So, I'm looking at a house that's tax assessed 30k below the asking price. Is this considered a ballpark estimate for an apprasial? I don't want to waste my time with something like that if there's no way I could get final approval on it if the appraisal comes up short of the amount I need to borrow.
Would it be a better idea to find a home that the asking is far below the assesed value, to guarantee (as much as possible) full funding backed by the VA?
If I'm way off base, please feel free to set me straight. Pete
Hi again Pete. The tax assessment value doesn't always match up or even take the actual market value into consideration. The county's tax assessor only places a taxable value on the property for the purchase of property taxes. That value could be considerably less than true market value. With the market being as volitile as it is right now, buyers do have an advantage. I highly suggest working with a real estate agent as it doesn't cost you anything. Check back with USAA on the movers advantage so you can get someone to help you stratagize and determine what the local comps went for recently in the area. Good luck.
Only use the tax assessed value to determine what your annual property taxes will be and to compare to other homes in the area. As far as market value goes, that will be determined by the appraiser. Also, the VA loan is 100% financing. You can put money down if you want to but you don't have to.
We have been working with a realtor, and so far he's been decent. I really dont have any other experience to estimate from, as we are first time buyers. I asked for a market analysis when we looked at a house we had interest in. We came straight home, 10 minutes later the analysis was in my inbox. With a little information and some creative online searching, I found the assesed values and tax bills for the homes we are interested in. that's what sparked my line of questions.
It's a huge learning curve we're in, as everyone goes through it at one time or another... I just like to have ALL my ducks in a row, and understand everything completely so there's no suprises later. The last thing I want is to think a home is going to cost $xxxx per month, and after paying for all the inspections, fees, etc... it ends up to be $xxxx + XXXX.
