This is a sponsored post written by me on behalf of Navy Federal Credit Union. All opinions are 100% mine. Navy Federal is federally insured by NCUA. Equal Housing Lenders.
The decision to purchase real estate while serving in the military can be both exciting and daunting. Military families’ changing lifestyles and frequent moves can create challenges. However, it can also be a profitable decision that sets you and your family up for success in post-military life.
For our family, who have served in the military for 11 years, this journey has been both a valuable experience and an unexpected challenge. We have purchased two homes and are currently purchasing another, and we have learned some important lessons that we wish we had known beforehand. Here are tips from our family for military personnel considering purchasing real estate while on active duty and after retirement.
Understand your VA loan
While there are many types of loans to purchase real estate, many military families find that VA loans are a beneficial option for them in the home buying process. Veterans Administration loans are designed to help eligible active duty military members, veterans, National Guard members, reservists and some surviving spouses purchase a home.
VA Loan Benefits These include lower, competitive interest rates, no private mortgage insurance, more flexible credit requirements, no down payment in some cases, and more.
Understanding VA loans is an integral part of the buying process for military members and veterans. do some research VA loan requirements and how it works during the buying process. For example, a VA loan must be used to purchase a primary residence within a certain period of time. If you plan to keep a VA loan home you previously purchased, make sure you understand how VA funding fees affect your purchase price. These are things we have learned along the way as a family and considered when deciding whether it would be better to hold on to real estate or sell and buy another property.
For veterans, it is even more important to understand VA benefits in the state where you plan to return home. Combined with existing VA loan benefits, knowing your disability percentage can save you thousands of dollars. Having all the facts will help you make the best buying decision for your unique situation, which is critical to your success.
Your real estate team plays an important role in the buying process
Our family’s real estate journey began with finding a real estate agent and lender familiar with VA loans. The best thing we can do is understand that not every team is created equal. Work with a real estate agent People who are familiar with VA loans, as well as lenders who specialize in these types of loans, play an important role in the buying process.
This can help you be taken care of and considered when buying a home under pressure during PCS, ETS or other transitional periods. Also, having someone who understands the market of your new duty station/city and helps you make an informed choice in less time is a very real scenario in army life.
Purchasing real estate while on active duty or planning for retirement often means purchasing a home from thousands of miles away via Facetime or Zoom meetings, as our family has done twice. We thank our real estate agents for hosting virtual appointments and facilitating everything from home purchase selection to setting up a virtual closing. You need a team that understands your needs and has your best interests at heart to maximize your VA loan benefits and get you into your new home with minimal stress.
implicit cost budget
Regardless of the benefits of a VA loan, there are always hidden costs to consider when purchasing any property. Buying a home involves more than just a down payment. While the VA loan itself comes with zero down payment, other fees still apply, from security deposits to maintenance fees and new home renovations.
We purchased a home that was being renovated and a new construction home while we were in the military. Both times, we were grateful that we had enough money set aside to easily afford to start a new life in a new city/state.
Credit unions like Navy Federal Credit Union on our side make an exponential difference in budgeting and savings for every home business.
We have used similar products Certificateaward credit cardetc. to help you prevent unexpected events. For us, it’s comforting to know that we have access to 24-hour online, mobile and phone calls, as well as on-site service at local branches, every step of the way from finding a home to closing.
Knowing your complete financial picture is crucial to avoiding future financial stress, and having a credit union like Navy Federal as your financial partner can give you peace of mind when making one of your most important purchases.
in conclusion
Our family’s 11 years in the military taught us valuable lessons about buying real estate. From understanding VA loans to budgeting for hidden costs to choosing between a fixer-upper and new construction home, these experiences provide a wealth of knowledge for military families considering purchasing real estate. By building a team of real estate and financial experts, you can also navigate the real estate market with more confidence and succeed. Remember, every home buying experience is unique and being prepared is key to making the most of this exciting opportunity.
