Top 5 VA Buyer Mistakes to Avoid

As a VA loan expert and Army Veteran, I've seen my fair share of VA loan buyer mistakes and misconceptions. In this blog post, we'll go over the top 5 VA buyer mistakes to avoid, including assumptions about eligibility and down payments, working with an inexperienced agent, and more.

Mistake #1: Assuming You're Not Eligible

One of the biggest mistakes that VA buyers can make is assuming that they are not eligible for a VA loan. In fact, there are a number of ways that someone can be eligible for a VA loan, including being the spouse of a service member who passed away in the line of duty, currently serving as an Active Duty Service Member, or being a Veteran who was honorably discharged (note the word Veteran refers to a person who served in the Armed Forces, not to be confused with a Combat Veteran, meaning they deployed while serving).

So before you assume that you're not eligible for a VA loan, it's important to do your research and find out for sure. You may be surprised to learn that you are, in fact, eligible for this type of home loan.

Mistake #2: Thinking No Down Payment Means No Closing Costs

Another mistake that VA buyers can make is assuming that no down payment, also means they won't have to pay any closing costs. While it's true that VA loans come with no down payment requirement, that doesn't mean that buyers won't have to pay any money upfront.

In fact, there are still a number of closing costs that VA buyers will need to pay, including things like appraisal fees, title fees, home inspections, and more. So it's important to be prepared for these costs and make sure that you have the necessary funds to cover them.

Mistake #3: Working with an Inexperienced Agent

When it comes to buying a home, having the right agent on your side can make all the difference. And for VA buyers, it's especially important to work with an agent who has experience working with VA loans.

Unfortunately, some VA buyers make the mistake of working with an inexperienced agent who may not be familiar with the ins and outs of VA loans. This can lead to a number of problems, including delays in the home buying process and even the possibility of losing out on a home altogether.

So before you start working with an agent, it's important to ask them about their experience with VA loans and make sure that they have the necessary knowledge and expertise to help you navigate the process.

Mistake #4: Not Getting Pre-Approved for a Mortgage

Another mistake that VA buyers can make is not getting pre-approved for a mortgage before they start looking at homes. Pre-approval is important because it gives you a better idea of how much house you can afford, and it also makes you a more attractive buyer to sellers.

Without a pre-approval, you may find yourself falling in love with a home that you can't actually afford, or you may miss out on a great opportunity because another buyer who was pre-approved was able to make a stronger offer.

Mistake #5: Not Understanding the VA Loan Funding Fee

The VA Loan Funding Fee is a one-time fee that is charged by the VA to help fund the loan program. The amount of the fee varies depending on the type of loan and your military status. Many VA buyers are surprised by this fee and may not have budgeted for it. It's important to understand the fee and factor it into your budget. You should also know that this fee can be financed in the loan or paid for at closing. In addition, you won't be charged a funding fee if you’re receiving VA compensation for a service-connected disability.

In conclusion, if you're a VA buyer, it's important to be aware of these common mistakes and take steps to avoid them. By doing so, you can increase your chances of a successful home buying experience and enjoy the many benefits that come with using a VA loan to purchase your home!