Buying a home with a VA loan is one of the smartest decisions qualified veterans can make. Though the process works similarly to conventional mortgages, there are a few nuances that make using a VA loan slightly different. You’ll want to avoid these common mistakes when using a VA loan.
8 Mistakes to Avoid When Buying a Home With a VA Loan
Many homebuyers make these mistakes when buying a home with a VA loan. Here’s what you can do to avoid making them.
1. Not Shopping Around
When buying a home with a VA loan, you still need to find a loan you can afford. Get quotes from several lenders and compare them in detail to get the best loan for your budget.
2. Buying Too Much House
VA loans make buying a house affordable, but that doesn’t mean you should buy the most expensive home in your price range. You still have to make your monthly payments on time. Choose a house that you can afford even during lean times.
3. Ignoring Your Credit Score
When you’re buying a home with a VA loan, your credit score doesn’t have to be great. However, you’ll still want to know where you stand and try to improve your score before you apply for a loan. It can save you on interest payments.
4. Waiting to Find a Mortgage
Housing markets are notoriously competitive. Sellers prefer to work with buyers that are already pre-approved for a loan. Try to find a mortgage before you start looking for a house whenever possible.
5. Not Understanding Restrictions
VA loans are flexible, but they do have some pretty strict property requirements in place to protect both yourself and the lender. Make sure you understand those restrictions before you start shopping for a house.
6. Waiving an Inspection
Inspections tell you what’s wrong with the house before you buy it. Though they’re not required, it’s best to get one to protect your investment.
7. Not Budgeting for Closing Costs
Buying a home with a VA loan keeps your costs low, but you’ll still have to pay for some of the closing costs. Talk to your lender and budget for those costs ahead of time.
8. Forgetting About the Future
It’s rare that you’ll stay in your home forever. Plan for the future and make sure you have an exit strategy in place before you close on the house.
Avoid These Mistakes
Avoid making these mistakes when buying a home with a VA loan and you’ll be in good shape. Need to find a great mortgage to finance your purchase? Apply today.