Home buying for military families
***I am not a Realtor, a financial planner, a lawyer, or anything like that. This is not a sponsored post and is based on my own personal experiences.***
As an Air Force brat turned Army wife, I’ve lived in a lot of houses (9, if we ignore the three different places I lived while in college). I’ve been through the house-buying experience with my parents, and I’m currently in the throes of my own first house hunt. Here are some helpful tips I’ve picked up along the way.
1. Decide on budget. Budget is a make-or-break step. You never want to buy a house that’s more than you can afford. Military families also receive BAH (a housing stipend) if they live off post. A good rule of thumb is to find a place where your mortgage and your utilities will still be below the BAH. The size of your down payment will also affect your monthly payments. Use real estate websites or a Realtor to figure out the housing values in your area.
2. Look at your mortgage options. A mortgage is a large loan designated for buying a house. For the sake of simplicity, I’m using the two main examples for military families: traditional and VA. A traditional mortgage is just that, obtained through a lender at the current interest rates. A VA mortgage is restricted to service members and requires proof of service. Normally, VA mortgages offer lower interest rates and the option to not put a down payment. You’ll also have to decide on a 15 year or a 30 year mortgage. 15 year mortgages have higher monthly payments, but you’ll wind up owning your house in 15 years and will pay less interest over the life of the mortgage. 30 years have lower monthly payments, but a lot of people choose this route if they aren’t planning to stay in the house long term.
3. Choose a lender. Many different banks offer mortgages. Smaller credit unions and USAA are also lenders. Do your research to find the best interest rates and benefits. For VA loans: the VA sets the interest rate, so all lenders will have the same rate. Each lender just has different perks and benefits.
4. Get pre-approval. Pre-approval involves you filling out a mortgage application and providing some financial information (like your credit report and income) to see if your lender will actually give you that mortgage when it comes time to buy the house. You can complete it with a particular house in mind or with just your budget. This is a good idea because you become a more serious buyer.
5. Make an offer of your favorite house, close, live happily ever after!
What would y’all add to this list?
