Tips For Military Members Looking To Purchase A Home

Deciding when to buy a home can be tough for anyone.  For military members and their families, the nature of their service can add another element to consider.  Ultimately, the right time to purchase a home is when you are financially and emotionally ready.  Here are a few tips for military members looking to purchase a home.

1. Frequent relocation

Military personnel on active-duty move around frequently, usually once every two or three years.  Potential buyers should be comfortable with the idea of reselling or renting a property, as well as the idea that neither of those options may come up.  Talk with real estate agents in the area to get and idea of the local housing market and near-term trends.  You may not have any problem selling the home or finding renters, but there are no guarantees.In the event that your Permanent Change of Station (PCS) moves you elsewhere, you are still responsible for the new mortgage payment.  Short sales and foreclosures can cause havoc on your credit, and possibly put you out of the home buying game for years; it is a decision to take very seriously.

2. Costs of renting vs. buying

It is important to research and get a clear sense of what is likely to cost you more.  Paying a mortgage is still cheaper in most U.S. markets, but each buyer has a different situation.  Having a good lender is crucial to help you get pre-approved and run realistic numbers.Military buyers using their VA loan benefits typically will not need to spend several years saving for a down payment.  Part of the VA loan benefits include will feature the lowest average interest rates on the market, and often do not require the extra expense of mortgage insurance. Additionally, active-duty military personnel can count their basic housing allowance towards qualifying for a home loan.  This can help to cover some, if not all of your monthly housing costs.Do keep in mind that homeownership comes with costs that renters typically do not have to incur, such as upkeep, landscaping, repairs and more.  Buying with $0 down also means that you begin your homeowner life with very little or no equity.

3. Wants and needs

Becoming a homeowner offers freedom, as well as significant responsibility.  Take a look at your priorities and see how things look for you. Is it important for you to personalize your space? Do you enjoy home and yard maintenance? Owning a home means there isn't a landlord for you to call on a broken pipe or water heater, like there is with renting.  You're building equity for yourself, rather than a landlord.There really isn't a one-size-fits-all answer when it comes to purchasing a home.  Buying a home will evoke thoughts of long-term stability that are sometimes at odds with the unpredictability of the military lifestyle. There is still something to be said for the sense of pride that comes along with purchasing a home. Consider all of the options about what is best for you and contact a trusted real estate professional with any questions or concerns you may have.