The Ins and Outs of Buying a Home

Choosing to purchase a home is one of the most exciting times of any family. Having a place in which you can call your own is the dream of many; however, knowing where to begin isn't always easy. In addition to searching for a home with your real estate agent or one of the dozens of sites listing hundreds of homes, you need to know how you plan on financing the home. 

But that doesn't mean that purchasing a home has to be so daunting for the average military family seeking homeownership. In fact, if armed with a little knowhow, purchasing a home can be a relatively stress-free experience.

Before You Decide to Buy

While we all may want to buy a home, it isn't always the right choice for everyone. Before you decide to even walk into a few open houses, you need to sit down and be real with yourself about your finances. Consider whether or not you can afford a down payment, funding fees, or closing costs, and just the basics that come with owning a home such as updates, general maintenance, and the possibility of higher utility costs.

If you have enough expendable income, a steady income, and plenty of money left to save at the end of each month, there is a good chance that you can afford homeownership. However, if you find yourself struggling with rent and your current bills, you may want to hold off until you reach a point of financial stability before you purchase a home.

Once You Decide Homeownership is Right for You

If your family decides that homeownership is the right option for you, one of the first tasks you are going to want to complete is finding a lender. If you are a first time borrower, you have several lending options available to you including conventional, FHA, and VA. However, because of the government backing and lack of down payment and private mortgage insurance needed, the VA home loan provides the most benefit to military families.

In addition to being more suited to a military family’s financial needs, the VA home loan also has more lenient eligibility requirements, making the lending process easier. While conventional lenders require a 20 percent down payment and a credit score well in to the 700s, the VA home loan program only requires a Certificate of Eligibility and that certain service requirements are met.

What to Expect Once You Enter the Lending Process

If they choose to purchase a home through the VA home loan program, a pre-approved veteran, active duty service member, or an eligible spouse can be in their new home simply in as little as 60 days. To make the process quicker, interested borrowers are encouraged to receive pre-approval and have all financial documents prepared. The general steps for the mortgage process are as follows:

Gain pre-approval from a VA-approved lender

• Submit Certificate of Eligibility
• Find a reputable real estate agent
• Locate home you wish to purchase
• Submit loan application
• Wait for Processing and Approval
• Close on home

Purchasing a home can definitely be overwhelming at times, but it doesn't need to be an experience that is ridden with stress and anxiety. To make life easier, know before you shop. Check your finances, credit history, and know just what you are looking for in a home. After considering all the options, you should be able to easily find yourself in a home of your own in a matter of months.

Kevin Pearia is a mortgage commentator for Veterans United Home Loans, the nation’s leading dedicated provider of VA Home Loans and military family resources.