I work with a lot of VA eligible buyers here in military city USA. One of the misconceptions I often hear from her first time military buyers is “I’m eligible for a VA loan so I don’t need any money for the house.”

This gives me the opportunity to explain Earnest money, option deposit, and closing costs!


Earnest money in San Antonio is typically 1% of the sales price of the home. This is the buyers “skin in the game” showing the seller you are serious about purchasing a home. While it is possible to negotiate for a lower earnest deposit it does not show strength of the buyer. And it certainly does not give a seller a lot of confidence in the deal going through. In this tight housing market I highly discourage going in with less than 1%.

Next is the option deposit which is typically $10 a day for 10 days and a total of $100. This is typically paid in a check made out to the seller. It gives the buyer the right to back out for any reason within the first 10 days and still get their earnest money back. Bad inspection? Or just change your mind? With this option deposit paid, no problem. Get your 1% back no issues.

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Next chance to get out your checkbook comes when it is time for the home inspection! We always recommend our buyers get a third-party independent and licensed home inspection done. We can suggest some that have done a good job for our clients in the past if you don’t no one.  In San Antonio I would say $450 is a good estimate for a home inspection unless the home is large, way outside of the city limits, or has extra features like septic tank, water well, or other outbuildings etc.

Just to let you know, once the inspection results are back it is not unusual to try to negotiate for some repairs from the seller. If there are any big deal breakers always try to get the seller to accommodate repairs before closing. If they won’t, and you’re still in your option period back out and get your money back.

Once you are through that, it’s safe to tell the lender to order the appraisal! This is part of the process that we have very little control of. The lenders appraisers are quite untouchable and work independently. With any luck, they will see the value you are paying for the home and you will progress to the next step of the process which is going to the title company.

At this time you will get your keys after your loan has funded. Closing typically takes about 45 minutes to an hour. If you need to bring money, you will be given the amount to have wired to the title company or perhaps a cashier’s check could be an option as well.

This seems complicated, doesn’t it? Well, it’s not! It’s my job to help you through all of this just like I’ve done with hundreds of other families just like yours!

Ready to get started? Let’s go!

What it costs to buy a home with a VA loan:

To recap so you can budget for a resale home:

1% of the sales price in earnest money

 

$100 will get you 10 days for inspections etc.

 

Inspection typically $450 Unless there is a septic system, on site water well or a very large home. 

 

Termite inspection typically $75

 

$500 to order an appraisal. Ask your lender if this can be deferred to the closing.

 

Closing cost at the time of getting your keys that include up to 12 months of insurance, three months of property taxes, miscellaneous fees etc.  Many times I am able to get the seller to contribute towards your closing cost. Don’t let this discourage you!  Let’s figure out how to make it work! Just let me know when you’re ready.

 

If you'd like an estimate of how much closing costs are, just drop me a message or text/call 210-478-8555.  I'm happy to help you!