Common VA Myths

 You've heard them!

    We have all heard the myths about the VA, and they always vary wildly. Sometimes you'll hear one and it makes you want to rethink using your entitlement, I know that when I was looking at using mine the first time it made me hit the pause button a few times. After working in the industry, using the VA loan twice, and quite a few classes over it, I can finally put to rest some of the biggest myths that often make others hit the pause button on their home buying journey.

1. Zero Down = Weak Buyer 

    If you don't put any money down when you buy a house, it's because your credit isn't good, you haven't budgeted for it or that you're not ready to be buying a home. Aside from the fact that you've earned this unique benefit, lets take a look at some of the facts. The median FICO score is 736, the median household income for VA home-buyers is $105,227, and the national average cost of a VA loan on a home is $389,383. Zero down makes you a smart buyer that will still have a savings account after you've closed on your new home.

2. VA loans are harder to get through underwriting

Why would you want to use a loan that you are expecting to be a challenge to get approved? This myth puts you in the mindset that you will have a harder time using a VA loan over a different loan, and for the majority of the Military the VA loan is our only option. A VA Loan does not make it any more challenging to get through underwriting than another loan. Here is a quote from VA 26-7 "Underwriters are encouraged to consider every possible appropriate factor in seeking a proper basis for approving loan applications for every qualified Veteran".

3. VA loans take longer to close

I want to use my benefit, but it is going to take longer than other loan types. This is 100% false. The average VA loan closes within 3 days of a Conventional loan. This next one ties in with 2 above, but sometimes you can find lenders that have automatic underwriting authority on VA loans. 

4. You can only have one VA loan at a time.

A lot of Veterans think that you can only have one VA loan at a time, and that you have to satisfy your current loan before you get another one. This ties into eligibility, entitlements and qualifications. There is no max loan for any Veteran/Active Duty, or surviving spouse with full entitlement.

6. VA loan appraisals are extremely strict.

I want to get a new home but they are extremely strict and picky, will I be able to find the home I really like without having to worry if it will appraise? So this one is a two part explanation, but it benefits the buyer greatly. The VA loan has more opportunities to influence the value than any other loan. You can always do a Reconsideration of Value (ROV), and 87% of the time this shows an average increase of $7,000 dollars per $100,000 of value. The second part of this is that yes, the VA does have a unique set of guidelines and standards that must be met or satisfied to approve a loan. This means that if you were looking at a house and the VA said "Absolutely not", it was definitely in your best interest that the house didn't pass their standards. 

Now we come to what it all means!

    You're always going to hear myths about VA loans, and that is never going to stop. A lot of things are constantly changing, there are quite a few moving pieces in any loan type. You should take everything you hear with a grain of salt, and do your own research from licensed REALTORS, Lenders, and even people who have used the VA loan in the past. The more theories that you hear, the more you need to be asking questions to the ones who can give you educated and informed answers. I hope that you've found this helpful, I have been wanting to write this for awhile because I think it hits on a lot of the "what if" scenarios we inevitably create. I have links on my blog to the VA and VA resources, to include the sources for what I wrote here.

 

 

Deciding When it's Time

Finding a Home: A Guide to Deciding If It's Time for Your Family to Buy a House

    The decision to buy a house is one of the most significant milestones for a family. It's a journey that involves careful consideration, financial planning, and emotional readiness. In this blog post, we will explore the key factors that families should consider when determining if it's the right time to buy a house.

1. Financial Preparedness:

    The first and foremost consideration is financial readiness. Evaluate your current financial situation and future prospects. Create a detailed budget that includes your income, expenses, and savings. Take into account the additional costs associated with homeownership, such as property taxes, insurance, maintenance, and potential renovations.

    Consider consulting with a financial advisor to get a clear understanding of your financial capacity and the mortgage options available. Saving for a down payment is crucial if you aren't using a VA Home Loan, as it can significantly impact your mortgage terms and monthly payments. Also  it is always good to look into what grants or special programs you might qualify for.

2. Stability and Long-Term Plans:

    Assess your family's stability and long-term plans. Are you planning to stay in the area for an extended period? Consider factors such as job security, career goals, and the stability of the local real estate market. Purchasing a home is a long-term commitment, and it's essential to ensure that your family is ready for this level of stability.

3. Lifestyle Considerations:

    Think about your current and future lifestyle needs. Are you planning to expand your family? Do you need more space for a home office or recreational activities? Consider how a new home will accommodate your family's evolving needs over the years. Ensure that the property you choose aligns with your lifestyle and future goals.

4. Mortgage Affordability:

    Understanding your mortgage affordability is crucial in the home-buying process. Lenders typically use a debt-to-income ratio to determine how much mortgage you can afford. It's advisable to aim for a mortgage payment that is comfortably within your budget to avoid financial strain. Use online mortgage calculators to estimate your monthly payments and assess their impact on your overall budget.

5. Market Conditions:

    Keep an eye on the local real estate market conditions. Study trends, price fluctuations, and property values in the area where you plan to buy. In a buyer's market, you may have more negotiating power, while a seller's market might require a more strategic approach. Being informed about market conditions will empower you to make a well-informed decision.

Conclusion:

    Deciding when to buy a house is a complex and personal process that involves careful consideration of financial, emotional, and lifestyle factors. By assessing your financial readiness, stability, long-term plans, lifestyle considerations, and market conditions, your family can make an informed decision about whether it's the right time to embark on the exciting journey of homeownership. Remember, purchasing a home is not just a financial investment but also a commitment to building a foundation for lasting memories and a sense of belonging.

    If you have any questions or concerns about anything regarding purchasing a home, you can always ask a REALTOR. What you probably don't know is that your REALTOR can connect you with experts that do know the answers to your questions, think of them as a hub for subject matter experts. If you're interested in purchasing, but are unsure then let them know that. You will be able to gauge where the REALTOR's priorities lie depending on how they respond, but always putting the BLUF (Bottom Line Up Front) is the best way to communicate.

Home Inspections

The Vital Importance of Home Inspections in Central Texas

    Central Texas boasts picturesque landscapes, vibrant communities, and a thriving real estate market. If you're considering buying a home in this region, you're undoubtedly excited about the possibilities. However, before you finalize your purchase, there's a critical step you should never overlook – a comprehensive home inspection. In this blog post, we'll dive into why getting a home inspection in Central Texas is not just advisable but absolutely essential. I will 100% bring this up to you if we are heading under contract, so if you forget about it then you'll be reminded anyway.

1. Climate and Environmental Factors

    Central Texas is known for its diverse climate, from scorching summers to unpredictable weather patterns. These environmental factors can take a toll on a property over time. A professional home inspection can identify issues such as roofing damage, inadequate insulation, or foundation problems that may not be immediately visible but can be exacerbated by the region's unique climate.

2. Foundation Concerns

    Texas soil is notorious for its expansive nature, which can lead to foundation issues in homes. Uneven settling or foundation cracks can be costly to repair and may compromise the structural integrity of a property. A qualified home inspector can assess the foundation's condition, helping you avoid a potential financial pitfall.

3. Hidden Water Damage

    Central Texas is prone to heavy rain and occasional flooding, making water damage a significant concern. Home inspections can reveal hidden water damage, such as mold growth, rot, or compromised structural components. Detecting these issues early can save you from expensive repairs down the road. The seller does not have to disclose water damage that has been previously repaired if there is no current issue, the home inspector works for you and not the seller. Finding previous signs of water damage is significantly increased with a home inspector.

4. Electrical and Plumbing Systems

    Outdated or poorly maintained electrical and plumbing systems can pose serious safety hazards. A home inspector will evaluate these systems to ensure they meet current safety standards. This is particularly crucial in older homes, which may have outdated wiring or plumbing that needs immediate attention. It is common for houses to fall out of current code, every year something changes. These changes can be small or sometimes a major change, either way a home inspector will spot if something is not up to the current code.

5. Negotiation Power

    A thorough home inspection report can be a valuable negotiation tool. If the inspection reveals significant issues, you can use this information to negotiate a lower sale price or request that the seller makes necessary repairs before closing the deal. This can potentially save you thousands of dollars. If you choose to take it a step further and share your report with the listing agent, it puts everybody on the same page with all the facts up front. If you're a seller I encourage you to get a home inspection done within 30 days of listing and provide a copy of the inspection to a buyer if you go under contract, it shows you are being upfront with the condition and are less likely to be hiding anything from a the buyer.

6. Peace of Mind

    Buying a home is a significant investment, both financially and emotionally. A home inspection provides peace of mind, knowing that you're making an informed decision about the property. It reduces the risk of unexpected surprises after you move in, ensuring a smoother transition into your new Central Texas home. The home could be in great shape and everything comes back fantastic, but the HVAC hasn't been serviced in awhile and its coils or capacitor are about to fail.

Putting it all-together!

    In Central Texas, where the real estate market is vibrant and competitive, a home inspection is not just a good idea—it's a crucial step in the home-buying process. It helps you uncover hidden issues, negotiate a fair deal, and ultimately make a well-informed decision. Don't skip this essential step when buying a home in Central Texas; invest in a professional home inspection to protect your investment and enjoy your new home with confidence. Ask your agent for their recommendations for a home inspector, but do your own research as well. I always like to recommend my personal choice, then two additional companies that I know have a good reputation amongst the brokerage.