Biggest Mistakes Veteran and Military Home Buyers Make
Owning a home is the biggest piece of the American Dream. For some active duty military families, home ownership may seem unlikely unless retirement is on the horizon and you’re looking to finally set down roots.
But, buying a house while on active duty can be a great investment. Maybe you’re ready for a yard for your kids or maybe you feel like moving in and out of rentals is like throwing money away with nothing to show for it.
A number of programs are on hand through the U.S. Department of Veterans Affairs for those who have served in the military. However, even when buying a second, third, or 10th home, buyers can get overwhelmed and stressed out by the venture.
Avoiding some of the more common mistakes from the start, may help dodge the pit of misery some buyers fall into.
1: Not using a VA-savvy real estate agent
If you’re getting a VA loan, it’s wise to work with a Realtor who understands the VA home loan process. To navigate the home search as well as all of the subsequent requirements, using an agent who understands the system can help your transaction flow smoothly. An agent experienced with home loans for veterans will know about property prerequisites, loan limits, debt-to-income ratio standards, and other essential information.
2: Not communicating with your lender
According to the VA, about 33 percent of home-buying veterans don’t know they have a home mortgage benefit. It’s essential to discuss your service member status so you can learn about all potential advantages for veterans, such as 0 percent down, low-interest-rate mortgages, no mortgage insurance requirement, and more forgiving credit eligibility requirements.
3: Not understanding upfront home-buying costs
It’s common to see active-duty members go into the home-buying process not knowing about closing costs and other fees associated with buying a home. Even with little or no down payment, it’s likely you’ll have to have some cash on hand for things like the home appraisal and inspection.
4: Not thinking of your home as an investment
While it’s true you may be in the house for only a few years before getting transferred, your options are to hold the property and rent it out, or to sell right then. In either case, your home could end up being a smart investment.
Many active duty service members are able to purchase a home and make it into an investment property when they go on to their next duty station or they move. If you don’t like the idea of being a landlord, a VA loan is assumable (meaning you can transfer the loan and the property to another vet), or you can just sell the home to a nonmilitary buyer.
Keep in mind that you can use your VA home loan benefits again and again, so it’s possible to own a rental property and buy another home. You can even refinance a VA loan if you are an active-duty service member.
Buying a home can be stressful in any market, but with the coronavirus the process may seem more challenging than usual. But while the real estate market has changed, buying and selling has adapted to meet consumers’ needs. With mortgage rates continuing to hover at all-time lows, it’s possible for those with good credit and income to purchase a great home now.
If you’ve decided now is the time to buy a home, reach out to The Platinum Group, Realtors. Not only are they the number one independent real estate firm in Colorado, they’ve got lots of experience helping out veteran and active duty home buyers and sellers.
Local experts with the best tools and resources to provide platinum service and platinum results, The Platinum Group delivers top quality customer service with the utmost honesty, integrity and attention.
For a no-obligation consultation, call today: (719) 536-4478 or visit PlatinumHomesSales.com.