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Owning a home is one of life’s most significant accomplishments, and it can be especially fulfilling for veterans who have served our country. However, the process of purchasing a home can also be a challenging one, with many factors and practical considerations to be mindful of. In this guide, Bon Anno Real Estate walks you through some of the most important things to be aware of as a veteran looking to purchase a home.
Budget for a Down Payment
The first step in the home-buying process is to start saving for a down payment and closing costs as soon as possible, Freddie Mac points out. Depending on your financial situation and the specific home that you’re interested in, your down payment may need to be between 3.5–20% of the purchase price. Closing costs can add up to anywhere from 2–5% of the home’s purchase price, and they typically include things like appraisal fees, title insurance, and attorney fees. The sooner you begin saving, the more time you’ll have to build up your funds and prepare for these costs.
Get Preapproved for a Mortgage
The US Department of Veterans Affairs notes that the next crucial step in the home-buying process is to get preapproved for a VA home loan. This type of loan is specifically designed for veterans and offers benefits like no down payments or private mortgage insurance requirements. Before you start your home search, it is essential to have this preapproval in hand so that you know your budget and can communicate your seriousness as a potential buyer to sellers.
Work With a Knowledgeable Real Estate Agent
Working with an experienced real estate agent who is familiar with the VA home loan process is critical for all veterans looking to buy a home. This agent can help you find properties that meet your requirements and are within your budget. Moreover, an agent who is experienced with VA loans will be able to help you navigate the nuances of this type of loan and avoid any pitfalls along the way.
Save for a Down Payment
Even if you qualify for a zero-down mortgage, making a down payment helps you save money in the long run. However, saving for a down payment on a house requires both big and small financial strategies. On a larger scale, consider automating a portion of your income into a savings account specifically dedicated to your down payment. This can help you steadily accumulate funds without the temptation to spend.
Additionally, reducing significant expenses, like dining out or subscriptions, can also contribute to your savings. On a smaller scale, everyday savings can add up over time. One practical way is to switch to DIY natural cleaners for your household chores. Not only are these alternatives often cheaper than store-bought products, but they’re also eco-friendly. Making use of vinegar, baking soda, or lemon juice can effectively clean various surfaces at a fraction of the cost. Implementing both big and small savings strategies will gradually build up your down payment fund.
Rent Until You Can Buy
One essential part of the home-buying process is researching home prices in your area. This step can help you identify neighborhoods that are affordable and find homes that fit within your budget. Moreover, by understanding the local real estate market, you’ll be able to make informed decisions about the value of the homes you’re interested in and the offers that you submit to sellers.
It’s also wise to check out apartment rents, especially if you plan to save money to put down on your house. You’ll currently find 56 apartments available for rent in White Plains. Additionally, this will help you if you need to move to an area without having a home picked out or knowing which neighborhoods might suit your family best.
Raise Your Credit Score
Before you apply for any mortgage, it’s wise to check your credit score and take steps to improve it. A higher credit score can lead to lower interest rates, which can save you thousands of dollars over the life of your loan. Fortunately, there are many ways that you can improve your credit score, including paying down debt, disputing errors on your credit report, and spacing out your credit applications.
Prepare Your Resume
If you’re planning a move and seeking a new job, preparing your resume in advance is an essential step. A well-crafted resume can make a significant difference in successfully landing job interviews. Determine what information needs updated, and then use a resume creator to design a professional and attractive resume.
These online platforms offer customizable templates, easy-to-use interfaces, and helpful tips to guide you through the process. They allow you to focus on showcasing your skills, experiences, and achievements in the most effective way.
Remember to tailor your resume to each specific job you apply for, emphasizing the qualifications and experiences that align with the job description. Preparing your resume beforehand can save you time and stress, allowing you to hit the ground running once you’ve relocated.
Understand Homeownership Costs
When it comes to purchasing a home, it is essential to consider not just the purchase price, but also the additional costs that come with homeownership. For example, property taxes can be a significant expense, and your mortgage lender may require you to set up an escrow account to pay them. Additionally, homes may require maintenance or upgrades, costs which can be challenging to anticipate at the outset of the home buying process.
Starting a Home-Based Business
Starting a business as a veteran can be a rewarding way to leverage the skills and experience gained during your military service, and if you’re buying with a business in mind, it’s important to remember things like space, presentation, and zoning. Also, remember that buying a home gives you financial validity, which can be a plus if you plan to seek out a business grant for veterans. These grants offer financial assistance to help get your business off the ground.
Additionally, the federal government provides opportunities for veteran-owned businesses to secure a portion of its annual contracting dollars. By taking advantage of such resources, veterans can successfully navigate the entrepreneurial landscape and build thriving businesses.
Find a Reputable Mortgage Lender
Finally, when you’re ready to apply for a mortgage, it’s important to shop around and find the best terms and rates. Different lenders may offer different rates or types of loans. By considering multiple options, you can ensure that you find the loan that is right for you and your financial situation.
Purchasing a home can be a complex and sometimes intimidating process, even for veterans who have served our country. But by following these guidelines, you can prepare yourself for the journey and set yourself up for success. With careful planning, the right support system, and a bit of luck, you’ll be well on your way to home ownership and all of the rewards that come with it.
