What’s the best advice for a first time home buyer using a VA loan?

2019-09-25T14:46:00-04:00

Family of four looking into buying a home. Any Advice and tips would be helpful. Any realtors you would suggest would be great as well.

Response by MAJ Private RallyPoint Member made Sep 25 at 2019 3:18 PM

2019-09-25T15:18:55-04:00

There are plenty of great realtors in the Springs and most have experience working with military and VA loans. Depending on who you are getting you mortgage through, some banks have recommended realtors because they know the bank's systems well. For example, USAA will actually give you, the buyer, money back after you close on a house if you use a preferred realtor.

As for tips, decide the location(s), school districts, etc. of where you want to live prior to looking. This will help narrow down your search. It also does not hurt to get pre-approved for a VA loan so you know exactly how much you can spend which also helps narrow down your search. Lastly, I recommend that you do not buy to much house even if you can afford it. Many military members buy more house than needed because their BAH covers it but then when life happens and things get in a jam, it can make things difficult to cover costs if all your money is going into the house. Especially when you PCS and end up paying for your house in the Springs and another at your next duty station.

Good luck and happy house hunting.

Response by SFC Private RallyPoint Member made Sep 25 at 2019 3:46 PM

2019-09-25T15:46:44-04:00

If there still is a memo out ask your company but there is a realtor who got black listed by the CG when I was there.

Response by SFC Casey O'Mally made Sep 25 at 2019 4:23 PM

2019-09-25T16:23:31-04:00

In addition to what has been said, and to tack on to what 1SG John Faircloth said, the VA loan is nothing more than a guarantee. Not all lenders are created equal, so do some rate shopping to find who the best lender for you is. Also, in the not all lenders are created equal category, look at customer service. Will the lender work with you if you DO have unforeseen circumstances? Do they answer the phone? Are they going to turn around and immediately sell your loan to someone else (which happened on both of my VA loans.) If so, who? And what is THAT company's reputation?

To tag on to what MAJ Private RallyPoint Member said, location is INCREDIBLY important. That house that is $20,000 cheaper but an extra 30 minute commute might not be worth it. Likewise that house right outside the gate that is $50,000 more might not be worth it.

If you do VA loan you should be required to do a home inspection prior to purchase. If you can, be there with the home inspector so (s)he can show you what they are looking at. If you can't be there, ask for pictures AND detailed descriptions. I found out the hard way that makeshift repairs CAN comply with inspections standards, despite being obviously done by an untrained amateur.

Response by LtCol Robert Quinter made Sep 25 at 2019 7:14 PM

2019-09-25T19:14:31-04:00

The first thing you have to do is find a good mortgage person. There are often state programs for first time buyers where the state has programs that minimize your initial costs. In today's market, you can often get a rate for a conventional loan that is less than your government sponsored programs. USDA loans are often very user friendly and will go 100% or more of the price of the home. FHA loans offer a smaller down payment than most conventional loans. The FHA also offers a loan where the cost of bringing a home that needs repairs or remodeling is included in the mortgage. Both the VA and FHA loans require the home meet standards (mostly safety) that a conventional loan does not require. There are to many variations to explain here, thus my recommendation to find a good mortgage provider, honestly answer his questions and provide him with your desires. Once he works with you for a minimum amount of time, he will be able to tell you how much you can afford for a home and give you a letter pre-qualifying you for a home up to a certain amount. That guidance makes it less time consuming for you and your realtor to find a home within your price range that fulfills as many of you and your families wants as possible. Realtors know the home inventory in the area, but mortgage writers are experts on available money that will meet your individual needs and circumstances. They often will provide you with recommendations on which realtor or agencies that will provide you the best service. One important thing to remember, you rarely have to pay the asking price on an existing home. Builders normally won't deal on price, but an owner who wants to sell his home will often take less than the asking price and give you a discount either in the form of a reduction in price or what is called a seller's assist where you take out a mortgage for a larger amount than the actual amount the seller is getting, with the additional amount going to you to help pay your closing costs.

Response by CW4 Craig Urban made Sep 25 at 2019 11:59 PM

2019-09-25T23:59:05-04:00

Make sure your credit score is above 700. I was stationed at Carson. As a SSG. I lived in quarters

Response by SGT Private RallyPoint Member made Sep 26 at 2019 12:06 AM

2019-09-26T00:06:38-04:00

Buy a multi family home. Trust me you’ll thank me later

Response by LCpl Robert Rangel made Sep 26 at 2019 3:36 PM

2019-09-26T15:36:30-04:00

consider the cost

Response by SFC Robert Walton made Sep 27 at 2019 9:43 AM

2019-09-27T09:43:36-04:00

My recommendation is go to post housing they have a list of recommended realtors. Your likely going to be Looking for housing in Security Widefield and Fountain. They have schools and shopping close but are still very close to post. Colorado Springs is way expensive and comes with all big town problems. DO NOT Go up by Cripple Creek and buy any thing. It is nice expensive and has a chance of flooding Unless things have changed. Now with all that said it has been a few years since I was there last and some things have changed I am sure. I was stationed in FT. Carson three times it can be a wonderful tour of duty. Enjoy and thank you for your service.

Response by CPL Michael E. R. made Oct 8 at 2019 9:26 AM

2019-10-08T09:26:38-04:00

Hiya just joined ,getting verified. As for the family it used to be "don't use your VA loan for the first home, family's outgrow it quickly and are better served using VA for 2nd or what most call final home ( usually the most expensive of the 3)
It is different now days first they get their certificate of eligibility with an entitlement 36,000 x 4 times guaranteed ( 144,000) up when ever the debt is honored , I.E. sold , refinanced etc, then they can get a new entitlement. In short multiple VA loans. while the VA loan is attractive with usually lower interest, no PMI be aware of the funding fees up to 3.3%. or course it is rolled into the loan. tell them to get pre-qualified so that they can move on the perfect property when they find it. never buy with emotion. the mantra should be every house is just bricks and mortar, until they sign . this helps a lot of couples from over buying. they hear that they can do $484,000 and end up house poor . every dollar going into home and nothing left to invest. when why calculate how much house they can afford each month , the dollar amount should be calculated AFTER they have first taken out their 10-20 % (investing money aka pay yourself first) last 2 points, all couples that live in home two years min get $500,000 tax cred when they move (hopefully upgrading) unless they opt for a 1031 exchange. make at least 1 extra mortgage payment every 12 months effectively cutting that 30 year fixed down to just 21 years and saving themselves a tremendous amount of money

Response by SSgt Donald Heaton made Oct 22 at 2019 8:04 PM

2019-10-22T20:04:02-04:00

I would not do another va loan.

Response by SSgt Mary Dahlheimer made Jan 24 at 2020 7:59 AM

2020-01-24T07:59:57-05:00

Remember, just because they say you qualify for a certain amount, they don't figure in food, gas, kids activities, etc. Figure those monthly expenses from your monthly net income, then see how much you can afford. Financing a home That's within or below your means is better.

Response by SSG Private RallyPoint Member made Jan 24 at 2020 8:24 AM

2020-01-24T08:24:16-05:00

Update for everyone. Thank you all for your responses. I will be closing on my house next week. The process was actually pretty easy and I ran into no issues. Thank you all again.

Response by Maj Scott S. made Feb 24 at 2020 12:32 PM

2020-02-24T12:32:14-05:00

Using a VA is likely the very best opportunity to buy a home without a down payment. However, interest rates will vary, and the better your credit score, the better your interest rate. Stay on top of your bills - make sure you keep paying on time or sooner. There are other ways to boost your score, however, easier to explain in a conversation than writing a mini novel here.
There are a lot of great REALTORS out there. I'd look for one with the letters CRS, and MRP after their name. The CRS is Certified Residential Specialist and have earned the equivalent of a Masters or PhD in Real Estate. The MRP is for Military Relocation Professional. (I'm an instructor for this program) these people "get it" and have a far better understanding of the military needs and lifestyle. Should you want help finding someone with these credentials let me know where you plan to buy - I can search the networks for you to find someone most qualified to help you.

Response by Amanda Albertson Lucas made Feb 24 at 2020 3:19 PM

2020-02-24T15:19:18-05:00

The VA home buying process can be rather intimidating at first but it’s really quiet simple if you know the basics.
Below is the basic process of purchasing a home with a VA Loan:
1. Eligibility- You can get a copy of your certificate of eligibility from the eBenefits website. If you have any problems or issues with getting a copy of yours, the lender can pull it for you.
2. Find a Lender- Make sure to find a lender that is familiar with VA loans. There are several that say they offer VA loans however their underwriters are not accustom to the VA requirements which will only hurt you in the end. Get pre-approved so you know how much you can afford and you are ahead of the game when you find a home.
3. Find a Realtor- When selecting an agent, make sure they are aware that you are obtaining a VA loan and familiar with the VA Loan process.
4. Apply for loan/Loan Processing- Once you have an accepted offer you will then move forward with your lender. The loan originator will explain this process to you.
5. Find you a new home and write an offer. Make sure that the “VA Option Clause” is included in the offer.
6. Loan Closing- You are ready to sign the closing documents and now the proud owner of your new home!CONGRATULATIONS!!
*Always remember that VA does NOT do the loans!! VA only insures/guarantees a portion of the loan. To obtain a VA mortgage loan you must go through a private lender that has no affiliation with the VA.
**I have been in the real estate/mortgage business for the past 20 years. I have been in the Ft. Bragg area since I started so I would definitely say that I have a little experience with the VA loan.
I am a licensed Military Mortgage Advisor with AAFMAA Mortgage Services. AAFMAA is a not-for-profit and member-owned organization. We provide affordable mortgage solutions, including purchase, refinance, and construction loans exclusively for the military community. Our top priority is to go above and beyond the call of duty and find the right mortgage for those who have gone above and beyond for us!!
Please feel free to contact me should I be of any assistance!

Response by SPC John Parker made Feb 24 at 2020 6:33 PM

2020-02-24T18:33:58-05:00

Outstanding advice from everyone! The National Association of Realtors Quarterly reports indicate there have been 95 straight months of year-over-year gains in the housing market and the lowest housing inventory since 1999. Fortunately, mortgage rates are helping to offset the price increases, so find a good mortgage person will guide you through the many mortgage options that best fit you. Get your mortgage pre-qualification done so you can be prepared to make an offer when you find the right property. Best of luck!

Response by MAJ Cathy Baumbusch made Feb 26 at 2020 12:04 AM

2020-02-26T00:04:55-05:00

First, make sure you have a buyer-broker agreement with the agent who will represent you. The seller's agent represents the seller only.
A BBA outlines what the broker is supposed to do for you.
Be sure to read everything you sign.
Don't let the agent gloss over any items of information.
Ask lots and lots of questions about anything you don't understand. A good agent will be patient with you and walk you through the process.
Shop around for a lender. The most important things to look at are the fees, because your interest rate is going to be the same no matter who you go with.
ALWAYS get a home inspection. You can ask for up to 4% in closing costs help from the seller with a VA Loan. (If you're in a strong seller's market, this may or may not be possible.)
Consider schools and your potential commute.
If you don't find what you're looking for, ask the agent if there are any expired or withdrawn listings that might still be interested in selling.
It's easy to find properties for sale online. Keep in mind though that almost every site will continue to list properties even if they are already under contract. They're usually listed as "pending."
It's the agent's job to do all the paperwork, manage deadlines, conduct negotiations on your behalf. Participate in the process. Keep the lines of communication open, so should they.
A $10,000 difference in price amounts to about $50-75/month. That being said, stick to your budget. Only you know what you are comfortable with as a monthly payment.
If you've viewed more than ten properties and still haven't found anything, re-evaluate your wants/needs list. Your agent will be frank with you whether or not everything you want is in your price range.
Don't buy any large items on credit before closing. This includes appliances, a car, a stereo, anything that will change your credit picture.
Are you at Ft. Carson? I may have a recommendation for you.

Response by CPL Thomas Glenn made Feb 27 at 2020 9:48 PM

2020-02-27T21:48:49-05:00

Have used it twice. It's worth it, just find a good lender. Lexington mortgage in s.c. was awesome to work with. Don't rush the part where you crawl around underneath, on top , inside.meaning due diligence is your friend. If the heat and air even looks 10 yrs old ,reduce your offer .waterheater..same, useable appliances or did they stick junk in . Look for anything new, meaning..new is good except when it's floor joist and walls. Termite damage is catastrophic. Get a good inspection guy. Please just go ahead and get your own guy to inspect the heat and air. Ours had 3 cracks in heat exchanger wich could've killed us. Don't be afraid to walk away!

Response by SGT Ronald "Shorty" Napier made Apr 27 at 2020 6:00 PM

2020-04-27T18:00:14-04:00

First, be realistic. It may take a few buys before you get into your Dream home. Only pick one or two items that you would really like in a home. (Fireplace, Deck,etc) Don't live above your means. You want a payment you can live with, about 25-30% of your monthly income (includes taxes) Don't buy any new car before you buy the house. It takes away from your disposable income. Don't count on 100% of two jobs, two paychecks, to buy. Lots of folks lost their homes in the housing crash. Now, you see, we have a new problem with Covid. Keep stability on one job. Dont bounce around. Remember realtor are salesmen, ON commission. A FEW are honorable and concerned about both parties, and your needs, and what they might or might not recommend to you. Dont sign any offers unless you or your attorney read them through, and you inderstand WHAT you are obligating yourself to. Don't tackle one that needs a lot of repairs (or money) IF you don't have the time or money. Our parents parents worked their way up, from two or three homes, each a little better. Face some realities. Neighborhoods dictate value. What you can afford will be in a neighborhood of similar priced homes. Less home, better neighborhood, more home, lesser neighborhood, etc. Neighborhoods are in the Eye of the beholder. Good luck. Ron [login to see]

Response by SP5 Andrew Jackson made Jan 18 at 2021 11:08 PM

2021-01-18T23:08:24-05:00

FIND ONE WITH A WHITE ROOF. It will save you on cooling and heating

Response by CPL Miguel Velez made Jan 10 at 2024 9:47 PM

2024-01-10T21:47:58-05:00

Brother Edward, Just rethink about it. No need to rush. When you use that VA Loan, you don't need a down payment which is all good, but my experience was, that at the moment of selling the house soon, I had to sell it to another veteran. Because you will need to clear with the VA the amount awarded to you on the Loan Certificate. Periodically the amounts increase. If you live or plan to buy in Florida I have two great Realtors very active, just drop me a note. Good Luck!

Response by GySgt Jayson Howard made Jan 11 at 2024 11:35 AM

2024-01-11T11:35:59-05:00

Be able to make the mortgage payments! That way you can reuse the VA Loan again & again. Have a good life.