VA LOAN PROGRAM CHALLENGES IN PLANO
Owning or purchasing a house or property is a big achievement and accomplishment. Regardless of the type of mortgage or loan that a buyer decides, the end goal is the same, being a home owner. The real estate is a fast growing industry but it has its challenges. To overcome the challenges there has to be solutions or recommendations to be followed by the industry players to help solve the problems. Like any other program, Plano VA Loan Rates also has its challenges which are listed below:-
Regulations and guidelines. The regulations and guidelines that are set by Department of Veteran Affairs has its setbacks. Some of them are not market friendly and might not be beneficial to the involved parties.
Market trends. The trends in market change rapidly, this causes the changes in the dynamics as a result rates, terms and conditions also tend to change.
Perception. There are bad perceptions out there about the VA Loans. One of the perception is the delay in the approval process, but these might be caused by slow documentation by the buyer.
Tough appraisal. The whole process of appraisal is very tough and vigorous for the VA Loan program, for example if a house does not meet the standard required by the VA. The issue has first to be sorted out by the lender before being approved and guaranteed.
Loan limits.VA Loan program has a lot of limitations .It cannot approve some types of houses especially those that are more than four units and also those that are too expensive and are not among their list of approved houses.
VA management challenges. Those management challenges trickle down to the lender and if the long run affects the home buyer directly or indirectly.
Financial losses. Due to the low rates given to the veterans, the lender at times tends to make losses. If the same houses would have been given to other clients via other mortgage programs, the lender would have charged a different rate most probably higher than what the veterans are being offered for the same property.
Limited documentation. This mostly affects the lender. In the service industry it’s advised that the lender knows their clients properly. It can be made possible by ensuring the home buyers fully document when applying and provide more and detailed documents.
The following are suggested way of overcoming the challenges facing the VA Loan Partners Plano TX Program and its members:-
Consult all involved parties when coming up with rules and regulations. Listen to each party’s views and ideas then come up with ones that suitable and fair for everyone.
Do thorough research on the current market trends and practices.
Tighten rules on documentation and underwriting. Let it be mandatory for the home buyer to do full documentation if they want their loans or mortgages approved and guaranteed.
VA management to improve on its governance skills, automate every process, this goes a long way in preventing fraud and minimizing delays.
Be flexible with the loan limits approval as long as a buyer has shown the willingness to follow through with the payment and he or she can afford it.
