Military veterans have many things to consider when buying a home, from how much money they can put down and how much they’ll be able to afford each month. But there are also several unique factors that come into play for military members and veterans. Here are four tips for military members who are looking to buy a home:
Do Your Research
Do your research. This seems obvious, but it’s so important. Before you even start looking at homes, get an idea of how much you can afford. You can do this by going to the Federal Housing Administration website (FHA.gov) or the Veterans United Home Loans website (VUHL.com). Make sure that the type of mortgage you choose will fit within your budget and be sure to look at comparable homes nearby. Find out how much similar houses are selling for in your area, which will give you an idea of how much your house should sell for when it’s time to move on down the road (or when it comes time to sell). Look at homes that have recently sold in your neighborhood and compare them with any others available nearby; this will help ensure that the asking price is fair and reasonable.
Get Pre-Approved For A Mortgage
If you haven’t already done so, it’s highly recommended that you get pre-approved for a mortgage before looking at homes. Not only does this show sellers that you are serious about buying their home, but acquiring pre-approval also gives you an idea of how much house you can afford. Once you have your pre-approval in hand, it will be easy to compare offers when talking with multiple sellers about their property.
Check Your Credit Score, And Make Sure It’s Up To Date
Before getting approved for a mortgage, it’s important that active duty service members make sure their credit score is up-to-date and that they don’t have any collections or judgments against them in their name. Your credit score can be a factor in whether or not you’ll be approved for a mortgage loan, and it’s important to make sure that it’s up to date before applying for financing. A good credit score will help ensure that you qualify for the best rates available, which could translate into thousands of dollars in savings over the life of your loan.
Learn About VA Loans Before You Start Shopping Around
If you’re eligible for a VA loan — which requires having served at least 90 days of active duty — then it’s strongly suggested that you look into these loans first before looking at traditional options such as FHA. Learning about the basics of VA loans before looking for homes can make the duration of the process much easier, and understanding what qualifies as an eligible property and what doesn’t can go a long way toward you finding the house you want. For example, some homes may not be eligible because they were built after December 31, 1950; others may be ineligible because they were built using treated wood rather than pressure-treated wood. Be sure to find out how much money you qualify for, and don’t apply for more than 80 percent of what your lender allows without knowing exactly how much money that is first!
