Your service to the nation deserves a reward, and part of your reward is getting some great advantages when it comes to home buying. Whether you are going straight through the United States Department of Veterans Affairs (VA) or going into the market by yourself, you can save money and get the home of your dreams. Here are 12 important steps for buying a house as a veteran.
1. Should I go through the VA?
The VA has some incredible programs for the people who qualify. Eligible veterans and their spouses can get relief from a down payment, waivers on origination and closing fees, lower interest rates in some cases, and an insider’s audience for properties that are set aside by private and public entities. The major benefit of not going through the VA is more freedom in the loan and paying less money over the life of the loan. Run the numbers with your financial advisor.
2. What kind of house do I want?
You need to limit your search as soon as possible, or you will never find a single property that you want. You also want to come into your agent’s office with a plan, so that you can both go into your lender’s office with a plan. Get your dream house in mind, and filter your online searches by the floor space, architecture, and layout.
3. How big of a house do I need?
The square footage of a house is an especially important part of the filtering process, because the size of a house dictates its value more than anything other than its location.
4. Where do I want to live?
Speaking of location, the place that you want to live should take second place only to property type, if that. Location means weather, allergy conditions, and other health oriented concerns. Filter your search by location next.
5. Do I want a turnkey house or a fixer upper?
After you get your property type and place it in a particular location, you need to filter your home search based upon the condition of the home. You may want to save a few dollars and put your military DIY skills to work, or you may want a completely turnkey property in order to spend more time outside of the house.
6. How do my finances look?
The amount of cash on hand, assets, and income coming in will all make a difference in the kind of house that you can afford. It will also make a big difference in the type of wealth that you can build with the home. You may want to meet with a financial planner or go through the prequalification process with your lender to see exactly how to use what you have to get what you want.
7. Who am I buying the house for?
If you have a significant other or a family, your priorities will be different. You will also buy your house for different purposes. You may stay in the house for a longer period of time, and you may also choose your house in a different neighborhood. Talk with your family to see how their quality of life will be affected by your choice.
8. Does the house have the proper amenities?
Whether you choose a turnkey or a fixer upper, it is much easier to find a property with the accommodations that you need for any physical problems that you have. For instance, bathrooms with lower tub shoulders for people who cannot lift their legs is an amenity that would save you thousands if you did not have to build it yourself. Ask the sellers about the special amenities that you need ahead of time, or have your agent do it so that you can quickly narrow down your selection of properties.
9. What does my credit look like?
Your credit means potentially lower rates and better terms. You may not have to go through the VA if you have a good enough credit score. If you have not pulled your credit report in order to find and clean mistakes, then do so now. Budget six months to clean your credit if your score is not 740, and keep in mind that your credit report will not include your credit score.
10. Do I have an emergency fund?
Having an emergency fund keeps you from having to move immediately. Much of real estate negotiation is timing, and if you have more time than the seller, then you will get a better deal. Money equals time, so save up at least six months of living expenses before you go into the real estate game heavily.
11. Do I have a good real estate lawyer?
Your lawyer will save you a great deal of hassle going through the legalese of the many documents that go to the government and to the seller. The lawyer may cost more money up front, but the investment will definitely pay off in the end, especially at the closing table.
12. What is my time frame?
You may have a certain time frame to get yourself settled, and you should stick to it. There is always a better property coming down the pike, and if you always look for the best deal every day, then you will never end a negotiation. Your agent will be able to help with this, assuming that you pick one that specializes in your order of real estate.
2 Point Highlight
The square footage of a house is an especially important part of the filtering process, because the size of a house dictates its value more than anything other than its location.
You may want to save a few dollars and put your military DIY skills to work, or you may want a completely turnkey property in order to spend more time outside of the house.
