Having a place to call your own—whether you’re going to be there for four years or forever—is an essential part of the American dream. The U.S. Department of Veterans Affairs offers plenty of great programs to help those who have served in the military get there, but the process isn’t foolproof. People can (and do) make mistakes buying their first home, second home, or 10th home.


You can avoid your own tale of woes by avoiding these 5 mistakes, even before you start your home search.

Mistake No 1:  Not getting a Realtor who knows VA loans

If you’re getting a VA loan, make sure you work with a Realtor who understands the process.

I see a lot of people go with an agent who doesn’t understand the VA system.  Remember, The VA won’t underwrite [just] any house. It is a huge, huge, huge deal to use an agent who understands the VA system, the VA appraisal process, and what that all really looks like

When you’re buying through the VA, you’ll need to find a home that meets VA property requirements. A VA appraiser will have specific criteria; for instance, fixer-uppers (and even some newer homes) won’t qualify. Save yourself the headache of making an offer on a house that may not get approved, and work with a VA experienced Realtor from the start.


Mistake # 2: Not communicating with your lender

Veterans have access to arguably the most powerful mortgage option on the market, but about one in three home-buying veterans don’t know they have a home loan benefit. When you first meet with your lender, be sure to discuss your military status so you can be informed about all the potential advantages.

One of the biggest benefits you’ll get with a VA loan is the ability to buy with 0% down (yes, I am totally serious). VA loans also come with low-interest rates, they don’t require mortgage insurance, and have more forgiving credit requirements.

Veterans should ask their lender if they offer any incentives for veterans, I’ve seen lenders waive appraisal fees, offer a waiver of the origination fee, and other lender credits.

That’s right—pretty much everything will get easier as soon as your lender knows your military status, so speak up!

Mistake # 3: Forgetting about all the home-buying costs

While you’ll have a ton of financial advantages with your VA loan, you will have some costs to deal with.

Probably the biggest mistake I see is active-duty members coming into the home-buying process and not knowing there are the other costs and fees necessary for buying a home.

When you’re buying a home, you’ll likely have to plunk down a bit of cash for things like a home appraisal and inspection. It might not cost much in the large scheme of things, but it’ll help speed things along if you come prepared knowing what you’ll have to shell out for.

Mistake # 4: Not thinking of your home as an investment

Maybe you think there’s no sense in buying if there’s a chance you might be relocated in the next few years. But that doesn’t mean you shouldn’t buy; in fact, that home could end up being a smart investment.

By searching in high-demand areas or choosing a popular home style and size, you’ll give yourself a better chance at resale if you need to move later. Or, you can hang on to it and rent it out.

My clients and I often go out and look for their first rental home, not just a home for their family. With so many in transition, they’re able to purchase a home and it becomes an investment property for them when they go on to their next duty station or they move.

Don’t like the idea of becoming a landlord?  Did you know, A VA loan is assumable (meaning you can transfer the loan and the property to another vet), or you can just sell the home to a nonmilitary buyer. And don’t forget: You can use your VA home loan benefits again and again, so you can own a rental property and a new home.

Mistake # 5: Making other big purchases before closing

Once you’ve found a home and your offer is accepted, you’ll probably be excited to just move in already and make it yours. Maybe you have an eye on a new big-screen TV, and you’re looking into financing a new living room set you love. But don’t do that yet.

Opening a line of credit or making a big purchase after loan approval is a common mistake, This can oftentimes change the veteran’s credit score and make them ineligible for the loan.

Wait until after closing to make any other financial moves, just to be on the safe side and to keep your loan on track.

If you are a veteran or on active member of our military, first of all , thank you for your service.  We hope you found this content valuable.  If you know a veteran that would benefit from this content, please share it with them and help them to avoid these costly mistakes.

I am Michael Falgares from the GetReal Group and we specialize in the VA Buying Process.  If you have any questions or are thinking of buying, selling or investing in New Jersey real estate, please give me a call or visit my website at www.getrealnj.com

Thanks for watching this Veteran’s Day edition and Happy Veteran’s Day!