Are you currently transitioning out of the military while shopping for a home in Virginia? If so, you can expect the process to be a little more complex than you might be used to. If you want the process to go as smoothly as possible, there are a few things it helps to be aware of. Let’s go over them now.
4 Things You Should Know When Buying a Home
- BAH probably won’t count. You are used to using your Basic Allowance for Housing (BAH) to help you cover your rent or mortgage costs. Once you become a civilian, however, you will no longer receive BAH. In fact, if you will be in the military for under a year at the time you are applying for a mortgage, you cannot use your BAH when accounting for your income.
- You will need to get a new job lined up. Your debt-to-income (DTI) ratio is one of the key criteria in determining if you qualify for a mortgage, and if so, for what rates. Since your military career is coming to an end, you will need to prove that you will still have sufficient income to pay off your mortgage. That means getting a new job lined up and verifying your future income. If you have already started that work, you can provide pay stubs. But if you have not, you will require a letter of intent from your future employer.
- You probably qualify for a VA mortgage. If you have met the service record to qualify for a VA mortgage, you are probably eligible to use this benefit. A VA mortgage offers advantages to homebuyers such as zero down payment, no PMI, affordable rates, and easy credit qualifications. It is one of the most competitive mortgage products around.
- In a lot of cases, the process can be slow. The reality is that even if you plan ahead, there are sometimes some complexities that go with buying a home when you are transitioning out of the military that are hard to avoid. In particular, it can be a challenge to time your mortgage application and home purchase with your switch to your new job. That can lead to some delays with the application and underwriting processes. So, try to be patient through the process, and understand that it may take a few months to move into a new home.
We Make the Home Buying Experience Smooth and Easy
At First Residential Mortgage, we work with many military homebuyers, including active duty and retired members of our nation’s armed forces. We have a lot of experience with helping borrowers purchase a home with a competitive loan while transitioning to civilian life.
That means we can help you to avoid common pitfalls and make the process as rapid and straightforward as possible. To schedule your consultation and begin the process, please call (540) 838-5868. We can help you buy a new home in Blacksburg or anywhere in Virginia.
