The US Department of Veterans Affairs offers numerous great home loan packages to help those who have served in the military to achieve the American Dream. But the process isn’t smooth. People make mistakes in buying their first home. You can escape from this by avoiding these five mistakes. So, here are the 5 mistakes you can avoid:
Not Contacting a Realtor who’s an Expert on VA Loans
If you’re getting a VA loan, make sure you contact a realtor who is an expert in the VA system. Many veterans hire realtors who don’t understand the VA system. When you’re buying through the VA, you really need to find real estate that meets VA property requirements. The VA appraiser has specific criteria like fixer-uppers and sometimes new homes don’t meet the requirements. Before making an offer, you should check whether your desired real estate meets the requirements or not. It is recommended to work with a VA experienced realtor from the beginning.
Not Telling Your Lender
Veterans and military personnel have the strongest mortgage facility in the real estate market in the US. But about 1/3 of the veterans, don’t know that they have a home loan benefit. When you first meet with your home lender, you should discuss your military status with them. So, home lenders can inform you about all the potential advantages to you. One of the biggest benefits you will get with the VA loan is the ability to buy with a 0% down payment. VA loans also come with low-interest rates. They don’t require mortgage insurance. Sometimes home lenders offer incentives to the veteran and military personnel.
Not Thinking of your Home as an Investment
Maybe you think there’s no sense in buying if there’s a chance that you may shift to a new area in the next few years. But that doesn’t mean that you shouldn’t buy the house. In fact, that home can be a smart investment. First, search in high demand areas; choose a popular home style and size. Then, you can get a good resale value if you need to shift later or you can give your house for rent. A VA loan is assumable means that you can transfer the loan and the property to another veteran like you. Also, you can sell the home to any non-military person.
Not Considering Home Buying Associated Costs
Now, you have all the financial advantages with your VA loan. But you have to spend some money on a few things. One of the biggest mistakes is not knowing about the costs associated and fees necessary to buy a house. When you’re buying your dream house, you have to spend some money on things like the home appraisal and the inspection. It will not cost you much.
Proceeding with Risky Purchases
Now, once you find a home and your offer is accepted, you would want to buy fancy things. But you should not don’t do that and hold it off for later. Making big purchases after loan approval is a common mistake. This changes the veteran’s credit score and makes the veterans ineligible for the VA loan. Wait until the closing to buy your dream car, a big flat-screen TV or any fancy items. It is just because to be on the safe side and to keep your loan right on track.
For more info, please visit: https://harborsidepartners.com/author/charles-carillo/0