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How VA loan homebuyers can maximize investment

Given today’s market realities, buying a home will not be without its challenges or unexpected surprises.

If you’re a veteran and plan on purchasing a home through the VA mortgage loan program, there are some common missteps you should know about before moving ahead.

With a little prep work, you can manage the variety of risks, challenges and opportunities to your advantage and make the most out of your homebuying experience.

Here are some common pitfalls to avoid.

Fail to budget for the now and later

Buying a home today is very different than buying a home six months ago.

The changing landscape means you must be as diligent as ever with your financial planning. Because of this, homebuyers must not be tempted by pushing the limits to purchase a budget-bending home and then overlook the costs of actually owning a home.

The bit of wisdom homebuyers should keep in mind is that they should understand limits and put a lot of thought into their budgets with careful consideration for every step.

Hire a real estate agent who doesn’t quite fit

You will make a lot of decisions through the course of buying a home. Selecting the right real estate agent to work alongside you is one of the more consequential decisions you’ll make. So, you really need to get it right.

As a rule of thumb, you should interview a few real estate agents before choosing who to work with. You can also rely on online reviews and recommendations from your family and friends when deciding.

The strategy should be to work with someone who clicks with you, and above all else, it’s important to work with someone who’s familiar with the market and has a proven track record of success on both selling and buying real estate.

Take their word for it

A verbal commitment from a seller that you will be selected to purchase the home isn’t firm.

If you count on verbal agreements throughout the homebuying process, then you should also prepare to be let down.

As soon as you strike a deal, work with your team to get everything in writing and in contract so you can move swiftly to the next steps of buying a home. Do not rest easy until all the appropriate forms are signed and executed.

Not thinking big picture

Right now, and for some time, home prices have skyrocketed. But, will that always be the case?

As a homebuyer, you are challenged to consider both today’s price and what the future might hold. Because of this reality, you should take into account what it would be like to sell your home in the future. You will want to make financial decisions that protect your investment for as long as possible.

As future value is a major consideration, you will want to think about various neighborhoods, possible home improvement projects and the home’s layout and features. They will all have a say in how much the home will be worth down the road.

Buying a home with a VA loan program offers applicants a number of benefits to make the most out of buying a home. Nevertheless, there will be some potential pitfalls to avoid. As you move ahead with your dreams of buying a home, make sure to take every precaution possible to avoid mistakes that can take away value from your investment.

Premier Mortgage Resources is not affiliated with or an agency of the federal government. Please consult your tax advisor. All opinions expressed by Loan Officer, are Loan Officer’s opinions and do not reflect the opinions of PMR.

 

5 myths about VA loans

The Veterans Affairs loan program supports the nation’s active and retired servicemembers in their new mission of owning a home.

As a federally backed program, the VA loan offers several benefits and cost-saving opportunities to qualified servicemembers and their families.

Despite the many perks and advantages, however, it can be easy to lose sight of all the positives. The following facts will debunk some of the nonsense surrounding VA loans and will reassure you and your family that a VA loan is an excellent pathway toward homeownership.

Myth: VA loans can only be used once

The truth is that qualified servicemembers and their families can reap the benefits of a loan that’s low interest, requires no mortgage insurance or down payment more than once.

There is no limit as to how many times eligible applicants can take advantage of the loan program. In some cases, it’s possible to have multiple loans at one time.

Myth: All lenders will service my VA loan

This is not necessarily true as lenders must be approved by, and work directly with, the VA to service this type of loan.

You can work directly with the Jaro Team on all types of loans, including the VA loan program. More information is provided below.

Myth: VA loans feature above-market interest rates

Applicants might assume that they’ll take on a higher interest rate since the loan lacks a down payment requirement and other cost-saving features.

Believe it or not, the loan’s savings extend to interest rates. VA loan applicants will also enjoy today’s low interest rates. In some cases, VA loan applicants will receive even lower rates that are below conventional lending standards as a thank you for their service.

Myth: Appraisal process scares away sellers

False. The appraisal process, which is a third-party evaluation of the home’s value, will not differ from other loan processes such as FHA or conventional lending.

There’s no reason why a seller would prefer a non-VA loan offer over the one you submit.

In many cases, lenders require an appraisal to ensure that the home is worth the asking price and that the loan aligns appropriately with the final price.

Myth: Applicants must have excellent credit score, no foreclosure

Remember, the VA loan is designed to assist eligible service members through homebuying support and lenient borrowing requirements. A checkered financial history does not disqualify individuals from getting a loan. If the applicant foreclosed on a home, they’ll have to wait just two years before reapplying.

Applicants with less-than-ideal credit scores will be considered for a loan too.

If you select the Jaro Team, we will work hard to ensure you enjoy all the benefits of housing assistance through the VA loan program.

Since the mortgage is federally backed and guaranteed, applicants such as yourself will enjoy low interest rates that compete or sometime beat out conventional home lending terms. Contact us to learn more about the program details and eligibility.

Premier Mortgage Resources, LLC is not affiliated with or an agency of the federal government.  The interest on the portion of the credit extension that is greater than the fair market value of the dwelling is not tax-deductible for federal income tax purposes and the consumer should consult a tax adviser for further information regarding the deductibility of interest and charges.