Everyone dreams of owning a home they can call theirs. That includes the veterans and military personnel who dedicated their lives to serving the country. Despite their intense training and tactical skills, most of them still need help when it comes to finding the right home for their families. They are also prone to committing decision errors.
If you are a veteran or military personnel looking into purchasing their dream home for your family, you should familiarize yourself with these common VA home loan mistakes and follow our recommended ways to avoid them.
Mistake 1: Not knowing your loan benefits
Veterans in the US have one of the most powerful and beneficial home mortgages available in the market. Unfortunately, not all veterans enjoy this benefit because they do not know what they are entitled to.
Upon meeting with your lender, make sure to introduce yourself and discuss your service member status. Because your lender now knows of your position, they should be able to inform you of all the available veterans’ and military personnel’s benefits and advantages. One significant benefit you should know is the 100 percent financing through the VA loan.
It means you get a zero down payment option, enabling you to purchase a home sooner than others. You can also enjoy a low-interest rate, and you will not be required to get mortgage insurance.
Mistake 2: Not taking into consideration all the upfront costs
As previously mentioned, VA loans are more advantageous than other types of loans. Because of this, many veterans forget that there are other expenses they still need to make. Costs like home appraisal and inspection need to be paid upfront. They will not leave you broke, but it is best to prepare yourself for these necessary payments.
Mistake 3: Forgetting that your home is your investment
Most military members do not consider their home as an investment because of their constant need to relocate. They settle for what they think is good for them. While this is not wrong, it is a common mistake that most of them commit. When buying a home, always think of it as an investment. You may spend so much money on it, but never forget that you can also sell it or rent it out in the future.
Do not be afraid to look for a popular-style home or a home in a high-demand area as you will have a better chance of selling these properties when the time comes. If you settle for something less, you may have a hard time looking for home buyers when you finally need to relocate.
Mistake 4: Purchasing other expensive things before closing the deal
This mistake also happens to other types of loans. Once you found a home and your loan offer got accepted, you may feel the excitement of purchasing home equipment and decor. That is a big no-no when it comes to home loans. Make sure that everything is settled and closed first before making other big purchases.
Opening a new line of credit or buying that big-screen television can impact your credit score. You may even get a chance of being ineligible for the loan. Remember that you are not considered a homeowner yet until after your loan gets closed. To be safe, wait until it officially closes before you make any grand financial decisions.
Mistake 5: Forgetting to utilize a VA-savvy real estate agent
It is always best to work with a real estate agent that knows how a VA loan works. Because yours has a unique setup, a knowledgeable real estate agent can help you make the right choices. One particular important detail is getting a home that meets the loan property requirements of the VA home loan program.
With an agent well-versed with the VA loan process, you can find and buy the right home that meets the criteria.
Everyone makes mistakes, but if you keep these enumerated mistakes and solutions in mind and seek the help of a VA-savvy real estate agent and a knowledgeable lender, you can make the best home purchase decision. Utilizing your VA loan can make the process of buying a home more comfortable and more financially favorable for you.
If you have decided to utilize your VA loan and have questions like where to find the best mortgage lender or apply for a mortgage loan, we can help you. Frontline Financial is dedicated to helping veterans find their dream home. Contact us today at 801-532-2553.