VA loans make the home-buying process a reality for thousands of retired and active military members each year. While the process is as streamlined as possible to help our veterans, mistakes still arise. The following are a few common mistakes people make when purchasing with a VA loan, and how they can be avoided.
Not Working with an Agent Who is Familiar with VA Loans
If you’re getting a VA loan it’s imperative that you work with an agent who understands its requirements. VA loans are not like conventional loans in that they have special requirements and processes that prevent the purchase of some new homes and fixer-uppers. Working with someone who knows of this from the beginning will help you avoid heartbreak and frustration down the road.
Not Communicating with Your Lender
There are so many benefits that come with being a veteran. So often veterans fail to disclose their military status with a lender, which prevents them from accessing these great benefits. VA loans come with low-interest rates, zero mortgage insurance, and even zero money down. Those benefits come standard, speak with your lender and you may be able to access extras like no appraisal or origination fees.
Being Unaware of all Associated Costs
While there are numerous financial advantages that come with a VA loan, there are still going to be out-of-pocket fees. Be aware that you’ll have to account for an earnest money deposit, a home inspection, an appraisal and possibly more. Having a VA loan doesn’t absolve you of all fees, just most of them, so be sure to have some money set aside to cover these costs.
Not Hedging Your Investment
So often do active military members choose not to buy for fear of deployment or relocation. If this is your first home, treat it like an investment and prep it to lease out while you’re away. By purchasing a popular home style or buying in a desirable neighborhood you’re all but assured to have consistent tenants. If you’d rather not rent out the property you can transfer the mortgage to another veteran or you can flat out sell the property. It’s important to remember that a VA loan isn’t a one-and-done. Depending on the cost of the home you’re buying you can use it several times throughout your lifetime.
Contact a member of Gore Group Realty to learn more about VA loans and to search available Henderson homes for sale!