Homeownership Intel, tips for future military homeowners
While this blog post is directed to those who have served their country, I think there is something to be learned by all home buyers. All people, no matter their background, make mistakes when buying their home—whether this is the first time or the sixth. Perhaps after reading through some items that are easily overlooked you will save yourself some frustration and even money!
Communicate with your Lender
Veterans have access to arguably the most powerful mortgage option on the market, according to realtor.com, but many don’t know about this benefit. When you first meet your lender make sure you discuss your military status or that of your spouse (spouses can have benefits too) so they can share any of the advantages that are available to you! Did you know that you can get a VA loan without a down payment? Also, typically VA loans carry a lower interest rate and do not require Mortgage Insurance. Of course through the process your lender is going to get to know you but be up front with your military background because it could impact your house hunt. Which brings us to our next tip…
Choose a lender & realtor with experience in VA loans
There are requirements and restrictions that go along with the VA loan, for example, not all houses qualify for the VA loan such as fixer uppers or even some newer homes. The last thing any of us want you to do is fall in love with a home that doesn’t work with the best financial option for you! I’m sure you can understand the benefit of choosing a lender who understands the VA loan process so you aren’t both going through it for the first time together. Here at Stockton Mortgage we have several loan officers with experience in VA loans who would love to answer any questions you have!
No down payment doesn’t mean no out of pocket costs
Don’t panic, we aren’t talking about significant costs but there is a possibility of having to pay closing costs or inspection fees. In the grand scheme of things, it is not a huge cost but it is always good to have a realistic idea of what to expect when you start a process.
Think of your home as an investment
This is particularly important for those who are active military. Even if there is a chance that you will relocated in a few years doesn’t mean that you shouldn’t purchase a home. It could end up being a smart investment but think about it that way. It would be advisable to look in a high demand area and choose a popular home style and size to up your chance of a quick resale or find renters easily, should you choose to hang onto it. Don’t forget; the benefits of a VA loan are not just for first time buyers so you can own the property as a rental and purchase a home to live in.
Wait until after the closing to make big purchases
Trust us, we understand that once your offer is accepted on a home it’s hard not want to purchase a new bedroom suite or that new sound system you have been eyeing. Opening up a line of credit for these big ticket items can affect your credit score so wait until after the closing to make any big purchases.
Informational Source: http://www.realtor.com/advice/buy/veteran-buyer-mistakes/?guide_ref=223057