Active-duty military and veterans have some really great opportunities in the real estate space, and there are some lesser-known facts about how to take advantage of the special opportunities available. Often active-duty military and veterans do not know that they have some of the best home buying benefits available! With the right information, active-duty military and veterans can avoid mistakes and bad decisions during the homebuying process.
Here’s how active and retired military nailed getting home the first time:
They know their Veterans Affairs loan options.
One of the biggest advantages active-service military members and veterans have when buying a home is the securing a VA loan. Some of the perks include the ability to buy with ZERO down payment, low-interest mortgages, no mortgage insurance, and liberal credit eligibility requirements. So better maximize these benefits.
They communicate with the lender.
Aside from the VA loan features, it gets better: lenders can also offer additional incentives like waiving appraisal fees and origination fees if the veteran has a certain credit score, for example. So be sure to communicate your military status and better things will open up when financing for your dream home.
They know their credit score.
VA loans have more forgiving credit eligibility requirements than a regular home loan, but it’s important to understand that your credit history still matters. Most VA lenders require a credit score of 620 or above. So secure a copy of your credit report, and if necessary, work on improving your credit score before applying for a loan.
They think about all upfront home-buying costs.
Just because you’re paying 0% down doesn’t mean there won’t be any up-front costs. You may need to shell out funds for things like closing costs, home appraisal, and inspection. Talk to your agent before shopping for homes to make sure you’re on track of how much you’ll need to spend upfront.
They think of their home as an investment.
If you’re worried because of the possibility that you might be relocated and buying a home does not make sense, think again. By searching in high-demand areas or choosing a popular home style and size (like 1,500-2,000 square feet), you’ll give yourself a better chance at resale or renting it out.
If you’re not into the idea of becoming a landlord, know that you can transfer the VA loan and the property to another vet, or you can just sell the home to a nonmilitary buyer.
They work with an agent that knows VA loans.
Working with people who understand all the nuances of veterans’ benefits and the loan itself will make the process a walk in the park. When you’re buying with an agent who knows about VA loans, he or she can help you find a home that meets the VA home loan property requirements, loan limits and such.
You have served the country, now let us serve you. If you or someone you know is thinking of buying or selling, feel free to call the agents at Broadpoint Properties.