Buying a home in your prime years is not the same as buying when you’re just starting a family or a career. There could be a myriad of reasons why you decided to buy a home in your sunset years. Regardless of the reasons, you want to avoid some common pitfalls when buying a home. In this guide, we’re going to highlight some of the mistakes so that you don’t end up regretting it.
Not using a Savvy Real Estate Agent
Not every real estate agent is going to be good for you. That is why you need to be careful with the research and selection process. You need to look for a realtor that has a thorough understanding of the VA home process. The homes that you go for should meet the VA home loan property requirements. An experienced agent will be familiar with VA loan limits, debt-to-income ratio, qualification requirements and other relevant information needed to secure a home.
Not Communicating With the Lender
Your lender needs to know what is happening at every step of the process. You might have found a potential house but don’t inform the lender. There are appraisals that need to be done in order to determine the market value of the property. You don’t want to reach out to the lender when you’ve made the decision to buy the house only for them to deny the application because of issues with valuation. One of the main benefits of getting a VA loan is that you’re able to buy a home with 0% down payment if you wish to. VA loans also have low-interest rates which make them ideal for veterans. Make sure that you’re in touch with your lender at all times so that there is no miscommunication when it comes to expectations.
Forgetting Upfront Costs
This is a problem that not only affects veteran home buyers but everyone in general. People are always excited about the prospects of owning a home and forget about the other upfront costs. You might have to do some repairs before the house becomes livable. It will be a good time to start learning DIY fixes. You can start at Reviewbrewery if you’re looking for the right tools for your DIY projects. It is also encouraged to have an emergency fund as you never know what could happen during and after the purchase of your home.
Thinking Your Home is not an Investment
Your home is more than a place that shelters you from the storm. You might be buying it for convenience purposes. Since it is an investment, you want to make sure that it is ticking all the boxes. You might be buying the property for the sake of speculation. Whatever the reason, you need to make sure that you’re doing research as you don’t want to be buying any other house.
Making Big Purchases Before Closing
It will be a bad idea to make a big purchase when you’re about to close on a house. This is particularly true if you’re buying a home through a mortgage. You don’t need to open a new line of credit just because of the excitement of owning a home. You need to remember that there will be monthly repayments that could take a toll on the finances. The last thing you’ll need is to be strained financially. Any big purchases should be postponed to a later date when you’re in a good place financially.
Not Getting Preapproved
It is not a good idea to go out to look for a house when you’ve not been approved. You could get a good house only to find out that you can’t afford it. Getting preapproved means you know how much you have for the purchase of a house. It is also a serious sign of intent and buyers are likely to take you seriously. There are lenders that will provide a preapproval letter in 48 hours once they’ve been furnished with the necessary details.
Not Checking Credit History
It is important that you’re checking your credit history when you want to take a mortgage. There could be mistakes that might be affecting the overall score. If you have a bad credit score, the first priority will be to provide a fix. The credit score will have a direct bearing on the interest rates you get. Buying a home as a veteran doesn’t have to be that challenging if you know what you’re looking for. Doing research is always recommended as much as you could be in a hurry.