6 of the Most Important VA Loan Tips for VA Homebuyers

Tip 1: Start Now

You don’t need to have your VA Certificate of Eligibility to start the VA loan process. You can start contacting VA approved lenders to start the prequalification and preapproval process right now because it doesn’t make sense to start looking for homes before you’ve got a clear sense of what you can afford and how much a lender is likely to extend. Our team have several amazing VA approved lenders that our clients have enjoyed working with so we would be happy to connect you with them.

Tip 2: Know Your Credit Report, Wait for Your Credit Score

Get a legit free copy of your credit report and go through it carefully because about a quarter of reports have errors that could derail you getting approved for a home loan altogether. But don’t confuse your credit report with your credit score, and don’t waste your money paying to see it. Lenders see different scores than consumers using a formula weighted for mortgage lending, so the only way to really know where you stand is to have the lender do it when the time comes. And don’t worry about lenders’ “hard inquiries” destroying your credit because credit bureaus treat multiple inquiries from mortgage lenders within a month or so as just one single pull, rather than have each one possibly drag down your score. It’s always a good idea to compare costs, loan rates and terms from multiple lenders.

Tip 3: Stay on Budget

That preapproval amount isn’t your budget, it’s your ceiling. Homeownership comes with a slew of expenses like homeowners insurance and property taxes to maintenance costs and everything in between. Looking for a new place to live can be fun, but this ain’t Monopoly, people! We take a slightly different approach then some and discuss with our clients what they feel comfortable paying monthly for housing expenses and then we work with the lender to come up with a preapproval amount that will keep you in your comfort zone.

Tip 4: Find a VA-Savvy Agent

As much as your cousin’s cousin Frank may want to break in his new realtor’s license, just say no. VA loans are a specialized product that some real estate agents and lenders know more about than others. For example, a good real estate agent who understands the VA program can help you avoid properties that are likely to pose problems during the appraisal process. Elizabeth is a military spouse, and she is very familiar with the VA loan program. She has purchased homes on numerous occasions using a VA loan and helped tons of military families purchase using this well-deserved benefit. She is also a certified Military Relocation Professional (MRP) through NAR, the National Association of Realtors. We are honored that PCS Pay-it-Foward®, a FREE program for military families committed to creating a smooth transition from one duty station to another by increasing access to resources and support, chose our team as the pre-vetted top military spouse real estate team for NAS Corpus Christi & NAS Kingsville.

Tip 5: You’ll Need Some Cash Money on Hand

You will need money up front to cover things like an earnest money deposit, an option fee, the appraisal, and the inspections, even though you may get all of that money back at the closing table. Here are some averages for these fees: Earnest money deposit is usually between $500-$1,000 Option Fee usually between $50-$100 Appraisal usually between $400-$600 Inspections are usually between $450-$600

Tip 6: Someone Has to Live There Soon

The VA program dictates that the property has to be occupied within 60 days of closing, but this includes a spouse, so don’t worry about an upcoming deployment or international contract obligations as long as one spouse can stay behind. 

If you have questions or need assist purchasing a home using a VA loan we are here to help! Contact us today! All American Home Source Realty Team (361)-878-8000 AAHSRTeam@gmail.com