5 Things Veterans Should Know Before Buying a Home
Buying a home with a VA loan offers unique advantages, so I wanted to discuss five crucial things every veteran and military member should know before buying a home.
As you start looking to buy a home using your VA home loan benefits, let me tell you, these benefits are game-changers. I’ve seen so many veterans miss out on just how incredible these opportunities are, so don’t let anyone tell you otherwise.
Here’s why VA loans stand out: there’s no down payment required, no private mortgage insurance, and you’ll find limited closing costs. Oh, and did I mention, lower rates? Yeah, these features are not found in other loan types.
Things Veterans Should Know Before Buying a Home
Before starting the home buying process, every veteran should know a few important things. From my years of experience helping veterans, here are the five things I believe are crucial for anyone using VA home loans to buy a home.
1. Always Utilize Your VA Loan Benefits
VA loans are beneficial for both the buyer and the seller. They come with government backing, which adds a layer of security to the transaction.
I’ve even covered this extensively in a video about why sellers should be keen to accept offers from veterans using VA loans.
Reusing Your Benefits
One of the great things about VA loans that I always highlight is that they’re not just a one-time benefit. You can use your VA loan benefits multiple times throughout your life. This means whenever you’re ready to buy a home, the VA is there to help make it more affordable. I think that’s a huge advantage for us veterans.
Competitive Rates and Flexible Guidelines
These loans typically offer lower interest rates compared to conventional ones. If you’re getting a rate similar to conventional loans, it’s a red flag about the lender.
VA loans come with more flexible guidelines. Things like credit scores and income verification are more lenient. Even situations like owning another home won’t necessarily disqualify you from getting a loan.
A pro tip from my side: For more insights on how mortgage rates might change and what that means for you, check out my post on the mortgage rates forecast.
100% Financing and Other Unique Benefits
I always highlight to my clients that even if you’re already using a VA loan for another home, you can still finance 100% of the purchase price of another property. You can take out a VA loan with a co-borrower who isn’t your spouse or a veteran, broadening your buying options.
Waiving Financing and Appraisals
One of the unique perks of a VA loan is the option to avoid initial financing and appraisal fees in certain cases. This feature can really sweeten the deal.
I always make sure my clients know about this because it’s a benefit that adds serious appeal to the VA loan, especially when you’re looking to keep upfront costs low.
The Cost of Switching to a Conventional Loan
Choose a conventional loan and later want to return to a VA loan. The process can be tricky and expensive, especially if you don’t have a service-related disability rating.
Choosing a VA loan means using a significant benefit you’ve earned through your service. It’s intended to make buying a home easier and more achievable. So, when looking at your financing options, think about the unique advantages of your VA benefits.
If all this seems a bit much or you have more questions about using your VA loan benefits, I’m here to help. Feel free to book a call with me to discuss your situation in more detail.
2. Work with an Experienced VA Loan Officer
Choosing the right loan officer is like picking your co-pilot for the VA loan process. It’s crucial to have the best person by your side. VA loans, as beneficial as they are, come with their own complexities that not every loan officer is familiar with.
It’s not just about processing loans efficiently. It’s about deep understanding and guiding through VA loans’ challenges and opportunities.
While I handle a significant volume of VA loans, I recognize the need for specialized expertise in areas I’m less familiar with, like state bond programs for first-time home buyers. This principle applies even more so to VA loans.
Pro Tip: Avoid places where VA loans aren’t a main focus, like some credit unions.
You might end up with less favorable rates or hidden fees, and during crunch times, like weekends, you might find it hard to get the prompt service you need. Your loan officer’s relationship with a real estate agent can be fundamental.
They will represent you in discussions, and if a listing agent has questions about your VA loan application, you want someone who can confidently advocate for you. Your loan officer’s effectiveness can influence the outcomes of your offers.
So, choose wisely when picking a loan officer for your VA loan. Opt for someone who understands the complexities of VA loans and stands ready to fight for your best interests every step of the way.
3. Partner with a Realtor Who Understands VA Loans
In my experience, finding the right realtor is just as important as choosing the best loan officer. Not all realtors understand the details of VA loans. Surprisingly, some might even avoid them without good reasons.
But here’s the truth: having a realtor who effectively communicates the advantages of a VA loan can make a significant difference in your home-buying process. It’s all about communication. A realtor who can “talk the talk” with listing agents is invaluable.
A knowledgeable realtor can explain why accepting a VA offer is good for you and can benefit the seller. This can help overcome any biases and open up opportunities that might otherwise be unavailable to veterans.
A realtor skilled in managing VA loans and who can strongly support their clients is essential. They make sure that the needs of both the buyer and the seller are met, leading to successful deals and happy parties on both sides of the transaction.
4. Aim for Quick Closing Dates
In real estate, especially with VA loans, how fast you can close can really make a difference in whether your offer succeeds. The usual 30–45 day closing period?
It’s often unnecessary and could even hurt your chance of getting the home. Modern lending practices, enhanced by technology, allow for much faster processing times.
For example, my team has developed a process we call “Same Day Mortgage.” This isn’t just a catchy name. We get full loan approvals in just one day, and we can close in as little as 10 to 14 days.
Yes, this includes VA loans, which many people think take longer because of their strict rules.
In the competitive market, we see today, being able to move this quickly isn’t just impressive. It’s almost necessary. It shows sellers that you are serious, ready, and able to move fast.
Being able to close quickly can attract a seller just as much as a higher price can. So, when you write your contract, think about your timelines carefully and use your ability to close quickly to make your offer more attractive.
5. Be Strategic with Offers
Being flexible with your offer can really make a difference in competitive markets. One strategy I recommend with VA loans is to use escalation clauses and consider waiving some contingencies.
Let’s talk about escalations first. It’s pretty straightforward. You start with your base offer and agree to increase it in specific increments, say $5,000, up to a certain limit (for example, $20,000 over the initial offer).
This approach can help you stay competitive without overcommitting right from the start. I know one agent. Let’s call her Kate Wink, who sometimes takes it further by escalating without setting a top number.
Genius, right? It ensures the buyer doesn’t lose out just because of a marginal difference. Plus, if there’s something like an HOA (Homeowners Association), you have an out if the final price isn’t yours.
Escalations aside, waiving contingencies, like financing or inspection, can also strengthen your offer. Sellers often want to minimize risks, and by reducing potential roadblocks, you’re presenting a cleaner, more attractive proposal.
Of course, you’ll need to be strategic and comfortable with waiving these, but it’s a tool that can make your offer stand out in a competitive field.
If you want more details on how these strategies can work for you, or if you’re curious about my “best-kept secrets,” feel free to schedule a call. I’m happy to share insights tailored to your specific situation.
Final Thoughts
Buying a home as a veteran has special benefits, and I am here to help you use them. By using your VA loan benefits, choosing the right professionals, and applying strategies like quick closings and escalation clauses, you’re preparing for success in the competitive home buying market.
These tips aim to make your home buying smoother and help you stand out. Remember, buying a home is a big step and an excellent reward for your service.
It’s important to make intelligent choices, work with people who know VA loans well, and keep a proactive approach.
With this advice, you’re ready to make confident decisions and find the perfect home. Feel free to reach out if you have any questions or need more help. I’m here to support you every step of the way.
