Purchasing a home is a challenging process that poses a variety of risks and opportunities to make mistakes. This is something to consider if you are someone planning a future home purchase with va loans for veterans. In order to prevent this, below is a list of common home buying missteps for veterans to avoid.
1. Choosing the Wrong Real Estate Agent
Picking a real estate agent is one of the first major decisions people in the market for a house must make. With this in mind, it is also the first opportunity to make a major mistake. When you are selecting a real estate agent be sure to choose someone with experience and a proven pedigree, as suggested by U.S. News. While choosing to hire a friend or relative is tempting, pick someone who has the most knowledge of the local market and a good track record.
2. Going Overboard on Contingencies
It’s natural to be anxious when you are on the hunt for your future home, but it is important not to let this nervousness hold you back. Many potential buyers overdo it with inspections and other stipulations in their offers. While they may serve as a way out of a deal down the road, they also ward of sellers in the first place. Try to keep contingencies to a minimum in order to avoid scaring away sellers and their agents from a potential deal.
3. Failing to Budget for Future Expenses
While you might be tempted to search for homes near the ceiling of your spending power, doing so can severely harm you in the future. Home buyers often forget to consider future expenses such as property taxes, maintenance and other fees. In order to save money to handle these expenses, avoid getting strapped into high mortgage payments. Just because you qualify for a huge mortgage and can afford the mansion down the street doesn’t mean its a wise choice. The same goes for va loans for veterans, as maxing out your loan on an expensive home can leave you with other large expenses you can’t afford.
4. Failing to Consider Future Resale Value
Although it may seem strange to consider selling a home before you’ve even purchased it, considering resale value is an important safety measure. Sometimes it’s impossible to plan for life’s unexpected changes, and if something came up that required you to move you’ll want the ability to do so. This means purchasing a home that someone else would be interested in in the future, as discussed by HowStuffWorks. While you might not need an extra bathroom or care about the size of your backyard, these are features that make homes more valuable on the market. Before making the decision to purchase a home yourself, take a step back and consider whether or not someone else would make the same decision.
5. Counting on a Verbal Agreement
Obviously it’s a good sign if a seller makes a verbal commitment to sell you a home. But instead of getting carried away celebrating or planning for your move, the next step should be to get the deal in writing as soon as possible. Until the appropriate forms are signed, don’t bank on the seller’s word as it can leave you in a tough situation if they change their mind or back out at the last minute.
Before you start considering using your va loans for veterans to purchase a home, it is important to be cautious and plan the process carefully. Consider the aforementioned advice to avoid common home buying mistakes.