Owning a home is a dream come true to many people today. Not having to pay rent or deal with the rude landlord is one of the best decisions you can ever make. There are many types of loans out there that can help you purchase your dream home, but if you are a military member or a veteran, then a VA loan suits you best. And with the many advantages of taking up the VA home loan benefit, there are some mistakes that you should avoid at all costs. Below are some of them:
- Choosing the wrong VA lender
The VA lender you choose determines how the whole process will be for you. Do some background checks to be sure that the one you choose is indeed the right one. Online reviews and referrals from your friends could be a great place to start from. You want to go for a VA lender who has a good reputation and is known for their excellent customer services. Also, find out for how long the VA lender has been in business. Go for one who has enough experience on the job as they will advise you better and even educate you more about the VA loan requirements that you did not know about.
- Poor communication between you and your lender
Communication between you and your lender is very vital in the loan borrowing process. If communication is wanting, then the process might prove to be difficult for you. As such, ensure that the communication is seamless and that you can easily ask your lender questions and get answers. Good communication ensures that the lender keeps you on the loop concerning your VA loan.
- Not comparing the mortgage rates
Another mistake you should avoid is not comparing the mortgage rates of the different lenders available. Different lenders offer different mortgage rates depending on various factors, such as their profit targets, business goals, and so on. Comparing the rates enable you to find the best deal among the VA approved lenders, which is something you should definitely do before taking the plunge.
- Ignoring the upfront costs
In as much as the VA loans have numerous benefits such as zero down payment, there are several costs that you need to consider. Some of the costs include VA loan appraisal and house inspection, which should be paid upfront. The appraisal and house inspection are vital as they help determine if the house is fit enough to be occupied as well as the value of the home. Therefore, ensure that you have some cash at hand, as this will make the process faster and easier for you.
- Ignoring APR
APR refers to the annual percentage rate, which is the annual rate charged for borrowing. Checking the APR enables you to know the true cost or overall costs of your VA loan. Understanding how the rate works in line with the other fees involved puts you in a better position to make an informed decision about your mortgage. Also, it helps you choose a lender that offers the best rates in the market.
