5 House Buying Tips for the Veteran Loan Program
Everyone?s home buying experience is different. This is because there are many different factors that contribute to your individualized shopping experience. It depends on your type of lending, your agent, the area you are shopping in, and the current real estate market and inventory. The VA loan program is a unique program that gives veterans better lending terms in order to purchase a house. If you have been recently pre approved for a VA loan program, remember the following home buying tips to ensure you have the best buying experience possible.
Get your financing in order first
The entire house buying process is easier when you have your financing in order ahead of time. In fact, many licensed real estate professionals will not even work with you, if you are not yet pre approved. Fortunately, the veterans home loan program offers easy approval terms. With over 1.5 million veterans in the state of Texas alone, you are likely to find many local lenders that offer VA mortgage rates. The VA loan lenders will walk you through the entire process, telling you what specific information and documentation you need for an approval. From here, you can provide your preapproval amount to your real estate agent of choice and begin the shopping process.
Choose an agent familiar with the VA loan program
While your real estate agent does not necessarily have to be informed of the veterans home loan program, it can make the entire process easier. The real estate agent is a source of valuable information during the home buying process, including the VA loan steps. Your VA loan approval may also have specific buying requirements. However, VA loans generally do not require mortgage insurance and allow for 100% financing.
Choose a price you can afford
It may be tempting to purchase a much larger and much more expensive of house, especially because you do not have to come up with a down payment or have to pay mortgage insurance. However, you will still have to make the monthly mortgage payments. It is important to not only consider how much you can afford now, but also how much you will be able to afford later. Many mortgages are on 30 year terms, meaning you have to make the monthly mortgage payment for 30 years. Utilize the veterans home loan program to your advantage, do not let it put you into a tough financial situation.
Consider a 15 year loan
Some lenders have a 15 year loan option. This means that instead of making payments for 30 years, you will only pay for 15. Although this results in a higher monthly mortgage payment, the house is paid off much quicker. You are also savings thousands in interest charges, because of the shorter loan term. Choosing a 15 year veterans home loan is an extremely smart financial decision, if it is an option for you. It is difficult to evaluate your future financial abilities. You will also build equity in your house much quicker with the 15 year loan.
Purchase on a VA loan, even if you already own
Did you already purchase a house previously, before you were a veteran? You can still sell your current house and purchase something on the veteran home loan program. Although this might seem like a lot of work initially, the terms offered can make it a much better financial choice. In fact in 2015, a total of 187,307 home loans went to veterans who were previous homebuyers. There are many veterans who sell their current house to take advantage of the great terms offered in the veterans home loan program.
Veteran home buyers can make their house buying experience easier by preparing for the process. You can prepare by getting your finances in order before shopping, understanding your current financial situation, and choosing a real estate professional that is familiar with the VA home loan program. The VA home loan program is a great home ownership program if you use it to improve your financial situation.