Buying a home is no small feat. Not to mention, as a former military service member, there’s a lot to consider before taking this big step. From the location to the house size, making this choice will require careful planning ahead. Here are just a few things you should consider before you begin your house search.
Your Loan Options
Applying for a loan is an important step in the home buying process, and knowing your loan options will help you plan out your budget and house hunt. VA loans are an option for veterans that offer more flexibility and lower requirements, making it easier to buy the home of your dreams.
Although VA loans are a great option for veterans, you may find it’s not the best fit for you and your family. Before deciding on a loan type, you may want to consider factors such as what credit score is needed for each loan type and how much down payment you can afford to put down. Being financially prepared and understanding how much savings you have for a home will ensure you’re getting the most bang for your buck.
Your Financial Goals
Another factor you’ll want to consider is your other long-term financial goals. If you are just starting a family, have little in savings, or are looking to make another major purchase such as a car or wedding, it may not be the best time to buy a home. Be sure to keep your finances in check and make smart money decisions so you’re prepared for whatever big purchases you have in your future.
Retirement is something you will also want to think about when buying a home. Some questions to ask yourself before starting the house buying process include:
- Is the area I’m looking at one I plan on retiring in?
- How much money am I expecting to use during retirement?
- Am I planning on traveling a lot during my retirement?
- Do I have a retirement account such as a 401(k)? If not, what money will I be using for my retirement?
Taking careful consideration and making sure you’re prepared for retirement will give you financial peace of mind in the long run.
Lastly, you’ll want to make sure these options are discussed with your family. Understanding how to talk about money with your partner will leave you both confident and on the same page with big financial decisions. If you find you and your spouse disagree when it comes to whether now is the right time to buy a home, it’s likely a good idea to pause house hunting. This ensures you’ll have a stronger foundation and more confidence during the home buying process once you are both in agreement on your needs and wants.
Buying a home is a huge investment and step toward your future, but it does come with its own unique challenges for veterans. Be sure to use all available resources to you and make sure you’re prepared for the commitment. Now it’s time to get planning!