The 3 Mistakes Veteran and Military Home Buyers Make
The 3 Big Mistakes Veteran and Military Home Buyers Make
Home is where the heart is and having a place to call your own, whether you’re going to be there for a certain time or forever, is an essential part of the American dream. Today the U.S. Department of Veterans Affairs offers great programs to help those who have served in the military find their home. Here are some simple, yet essential tips to help avoid problems because people can (and do) make mistakes buying their first, second, or tenth home.
#1 - First and for Most, Know Your Benefits:
It’s never too soon to meet with your lender and begin the discussion for becoming a home owner. Veterans have access to arguably the most powerful mortgage option on the market.
According to the VA, about one in three home buying veterans don’t know they have a home loan benefit so be sure to talk about your military status so you can be informed about all the potential advantages.
Also, ask your lender if they offer any incentives for veterans. For example, lenders can sometimes waive appraisal fees, offer a waiver of origination fee if the veteran has a certain credit score, or other lender credits.
Ask and then ask again because you not only deserve to receive all these benefits, but ignorance can cost you a lot of money during the home buying process!
Or maybe you didn’t even realize how easily you can become a home owner, so Don’t Be Shy and start today!
#2 - Hire a professional Realtor:
If you’re getting a VA loan, make sure you work with a professional Realtor who understands the process. There are multiple steps and while you’ll have a ton of financial advantages with your VA loan, you will have some costs to deal with. You’ll likely have to plunk down a bit of cash for things like a home appraisal and inspection.
When you’re buying with a VA loan, you’ll need to find a home that meets VA property requirements. The VA will not underwrite just any house. During the Due Diligence period the VA uses a different criteria for their VA appraisal; for instance, fixer-uppers and even some newer homes will not qualify. Save yourself the headache of making an offer on a house that may not get approved, and work with an experienced Realtor from the start.
Knowing what to expect and the cost of doing business to inspect and close on a home should be reviewed with any Realtor you interview. Having an advisor and negotiator working for you will not only help speed things along, it can significantly reduce your stress.
# 3 - Do Not make big purchases before closing:
This is common mistake of many home buyers but you must refrain from opening a line of credit or making a big purchase. From the time of your loan approval, until your Settlement date is finalized and the Deed is transferred - do not go out and buy the big screen TV you want in your new home. This can often times change your credit score and make you ineligible for the loan.
Wait until after closing to make any other financial moves, just to be on the safe side and to keep your loan on track.
Becoming educated about your benefits and using a professional Real Estate Agent will help you get off to the right start and stay on track for a successful and enriching experience of becoming a home owner.
May the next awesome home purchase be yours!