For most of us, the entire home buying process can be overwhelming, more so for veterans. It's a good thing that there are plenty of available resources to make the whole process simpler and more affordable for veterans.
If you're an active military person or one of those who served the military and starting to find a new home, make sure you have an idea on some of the most important home buying tips for veterans. Knowledge is power, so before you start your home search, arm yourself with these helpful guides when buying a new home as a veteran.
1. Understand everything you need to know about VA loans
A VA loan is a type of home financing backed or guaranteed by the U.S. Department of Veteran Affairs. It aims to help military families make home improvements or purchase a home. Most veterans are eligible for VA home loans. If you qualify for a VA home loan program, you should also shop around just like typical homebuyers do. Different lenders offer the best mortgage suitable for your needs.
VA loans have numerous benefits. One of them is to purchase a property with 0% down and usually low-interest rates. Also, most VA loans do not require private mortgage insurance.
It's essential to know, at least, the basics of VA home loan, so you know how to use your military benefits properly. But it is just a small part of the entire mortgage process. It's best to talk with a qualified mortgage lender to know what works best for you and maximize the use of your benefits.
2. Search for other lending options
A VA loan can be an excellent option for veterans, but there are many instances where different home loan options are a better fit for you. Some lending options are the following:
Conventional loans
Native American Direct Loans
3. Focus on your credit
Although the VA home loan program has looser credit requirements compared to traditional mortgages, it does not mean you can ignore it entirely. Each homebuyer needs a good credit history - with more positive and less negative indicators. Checking your score regularly will help you build your credit.
4. Find other financial resources
Numerous home buying programs and grants are available which offer financial support to veterans. Some of which are the following:
Specially Adapted Housing Grant (SAH) - can be used to renovate or build a house
PendFed's Dram Makers Program - offers a matching grant for the down payment and closing costs
Other state and local programs such as Utah Veteran First-time Homebuyer Grant
5. Keep your job
If you're applying for any mortgage, you need income, employment, and stability to qualify even in VA home loan programs. So, as much as possible, keep your current work through the entire process of home buying. If you quit your stable job, it will raise red flags for all kinds of lenders - even if you already have another lined-up job.
Your eligibility for the loan will be withdrawn if you change jobs during the process - no matter which part.
Buying a new home is both an exciting and emotional milestone for almost all people. This is especially true for veterans who spent most of their years traveling from one base to another and looking for the perfect home to call their own. The tips and guides stated above will help veterans know their way to the home buying journey. If you're a veteran looking for a home, follow the advice above, and don't forget to ask assistance from the right real estate agent.
