What Veterans Should Know About Buying a Home

Buying a home is a huge decision, no matter what phase of life you’re in. As a veteran, it’s important to make sure you take the right steps to ensure you’re not getting in over your head financially when you buy a house. Here are a few things the experts at Charlotte County Realty want you to know about buying a home, as well as steps you should take to make sure you’re staying financially prudent.

If you’re planning to buy a home in Southwest Florida, the Charlotte County Realty team will help you every step of the way, from understanding your home-buying budget to finding your ideal property to navigating the closing process. Contact us online or by calling (941) 613-9001 to get started.

Loan Types Available

Home loan types include conventional mortgages, fixed-rate mortgages, adjustable-rate mortgages, jumbo mortgages and government-insured mortgages, which is what you should focus on if you’re a veteran. Government-insured mortgages are available through the VA, FHA and USDA. Members of the US military and their families can take advantage of government-insured mortgages through the VA. These loans offer low interest rates and don’t require a down payment. If you want low monthly payments, a 30-year fixed loan may be a better option than a 15-year loan; you’ll pay more in interest over time, but because you’ll be making payments for a longer period of time, you won’t spend as much each month on them each month. Additionally, the closing costs are usually capped, and the seller may even pay for them.

No matter what type of loan you decide to take out, you should first carefully consider the APR, terms, interest rate, projected payments, and any other details associated with the loan. You may also want to use a mortgage calculator before signing any closing document, so you don’t unintentionally get yourself into a bad financial situation.

Prepare Financially

Before buying a home, you should take the time to analyze your finances and make sure you’re in a good position to make such a large purchase. To do this, there are several steps you should take:

●       Check your credit (and make repairs when necessary)

●       Pay down your debts

●       Make sure you have enough buying power to buy a home

●       Go through the loan pre-approval process.

Keep in mind that it can take approximately three to six months to repair your credit and resolve disputes. So if you want to buy a home within the next six months, take steps now to raise your credit score.

Search for the Perfect Home

Once you do the preliminary steps to make sure you’re in a good position to buy a home, it’s time to search for the ideal place to put down your roots. Keep in mind that your home search could take a few months, so try not to get in a rush. When looking for the perfect home, consider the neighborhood and make a list of your “must-have” neighborhood features (such as good schools, recreational opportunities, and low crime rates).

You should also be aware that there are certain times of the year that are better than others for buying a home. Generally, late summer is the best time to buy a home if you want a large selection. This is because many people choose to sell during this time. For the best price, November may be a better time to buy because there are often fewer shoppers.

Close on Your Home

Once you locate your dream home, it’s time to close on it. To make sure you get the house, make a good offer without exceeding your budget. Working with a real estate agent is helpful because he or she can help you negotiate the price and closing costs.

Though buying a home can be an intimidating process, following these steps and tips can make the process much easier. Remember, knowledge is power, so the more you learn about your various loan options, the better off you’ll be when buying a home as a veteran.