Common Mistakes to Avoid When Using a VA Loan

Not Understanding Eligibility Requirements:

VA loans have specific eligibility criteria, including length of service, discharge status, and other factors. Make sure you understand and meet the requirements before applying or reach out to a VA loan expert such as myself.

Not Getting Pre-Approved:

Getting pre-approved for a VA loan can give you a clear understanding of your budget and help you shop for homes within your price range. Skipping this step can lead to disappointment or wasting time looking at homes you can’t afford. Knowledge is power whenever you’re investing is real estate.

Skipping the VA Funding Fee:

The VA charges a funding fee on most VA loans, unless the borrower is exempt due to a service-connected disability of 10% or greater. While it’s possible to roll this fee into the loan, failing to account for it can affect your overall loan amount and monthly payments.

Overlooking Other Costs:

Beyond the funding fee, there are other costs associated with buying a home, such as closing costs, appraisal fees, and inspections. Make sure to budget for these expenses to avoid any surprises at closing.

Ignoring Credit Score and Debt-to-Income Ratio:

While VA loans are generally more flexible with credit requirements compared to conventional loans, having a good credit score and manageable debt-to-income ratio can still impact your loan approval and interest rate. Take steps to improve your credit score and lower your debt before applying for a VA loan.

Not Working with a VA Loan Specialist:

Working with a lender or loan officer who specializes in VA loans can be beneficial, as they understand the unique aspects of the program and can guide you through the process more effectively.

Forgetting to Consider Resale Value:

When buying a home with a VA loan, consider its resale value. Factors such as location, school districts, and neighborhood amenities can affect the home’s future marketability.

Not Budgeting for Maintenance and Repairs:

Owning a home comes with ongoing maintenance and repair costs. Make sure to budget for these expenses to avoid financial strain down the road.

Skipping the Home Inspection:

A home inspection is crucial for identifying any potential issues with the property. Skipping this step could leave you with unexpected repair costs after closing.

While purchasing a home can seem like a daunting task, my team and I are here to help simplify and reduce the stress during the process by explaining every step in great detail. We have been in mortgage industry for a very long time and specialize in VA loans.