The home buying process isn’t easy. It’s important to remember that the road to homeownership is full of twists and turns. So it’s best to prepare for the unexpected. Here are a few unexpected hiccups that may come up during the home buying process.
- Unexpected expenses: Buying a home is expensive. It’s probably the most significant financial decision you will make. But there are more costs during the home buying process than a lot of people think about. For traditional mortgages, many focus on the down payment as the greatest expense. However, with a VA loan, there is no set down payment requirement. Instead, you may want to consider that closing costs could be more expensive than many potential homeowners realize and can include fees for lawyers, a home inspection, title fees and more.
- Title issues: Property title issues occur more frequently than people think. There are all kinds of title issues. For example, sometimes the seller doesn’t have permission to sell, or there is a lien on the property that no one knows about. Title issues can be a lot of different things. Be prepared for title issues during the closing process, and hire a good title agency or real estate lawyer if the need arises!
- Documentation issues: When you apply for mortgage financing, you will need a lot of documentation to prove who you are and your financial status. Gathering all the necessary documents can be complicated and expensive, especially if you have to order new government-issued documents. We recommend checking your documentation before beginning the home buying process to ensure everything is in order.
- Unexpected repairs: Sometimes a home inspection turns up more problems than you’d like! If you’re buying a home in a busy marketplace where properties are scarce or buying without an inspection (don’t do it!), you may be on the hook for repairs or renovations to make the property livable before you move in. Set aside some extra money for home repairs when you get possession.
- Higher interest rates: For veterans, this one isn’t quite as scary. While it is true that rates are rising right now, VA loans offer competitive rates that are often lower than with other types of loan programs.
Are these all the unexpected problems that may arise during the home buying process? Absolutely not! We’ve seen it all. There are plenty of ways the homebuying process can be derailed by the unexpected. But after all our experience, we’ve learned a few things, and we want to put our experience to work for you.
- It pays to save up a little extra money for unexpected expenses.
- Make sure you work with experienced real estate and mortgage professionals, like us here at Uniform Services Veterans Mortgage. We know the industry and all the unexpected problems that can arise!