Avoid These 7 Common Homebuying Mistakes as a Military Member

Purchasing a home is a significant milestone for many, but for military members, the process involves unique challenges and considerations. Whether you're buying your first home or moving due to a new Permanent Change of Station (PCS) order, it's essential to navigate the process with as much information as possible.

This post is here to help you sidestep common pitfalls that many military homebuyers face, ensuring a smoother transition into homeownership.

Pitfall 1: Rushing the Home-Buying Process

Sometimes you only have a few days to look for a home, especially if you are moving to a new state. Due to the nature of military life, you might find yourself under pressure to buy a home quickly after receiving PCS orders. However, rushing into a home purchase without thorough research or consideration can lead to dissatisfaction and financial strain.

Take the time to research the area you're moving to. Utilize online resources, talk to colleagues who are familiar with the area, and consider renting for a short period if you're unfamiliar with the location. This approach gives you time to understand the local housing market and identify the neighborhoods that best suit your family’s needs. I have bought a home in a rush, a realized after I moved, there were other neighborhoods I would have liked more for my familiy.

Pitfall 2: Overlooking Future Saleability

The transient lifestyle of military careers means that your next move is always just around the corner. Buying a home without considering its potential resale value can make it difficult to sell when you receive your next orders. While you may be able to rent it out if that financially works in your situation, you may have to sell, so be sure you can sell the house quickly and easily if you plan on living in it for only a few years,

Look for homes with features that have broad appeal, like good schools, convenient access to amenities, and attractive neighborhood qualities. Consult with local real estate agents to get a sense of what homes sell quickly and for a good price in the area. It’s also wise to choose homes that don’t require extensive customization or unique features that might not appeal to the general buyer when you're ready to move on.

Pitfall 3: Not Fully Understanding VA Loan Benefits and Limitations

VA backed loans offer tremendous benefits, including no down payment, no private mortgage insurance, and competitive interest rates. However, not fully understanding the limitations and requirements can lead to unexpected issues. There are some myths out there and it is best to consult with a lender who can give you the ground truth on how you can use your VA benefit.

Before you start house hunting, get a full briefing on VA loan eligibility and benefits from a qualified VA loan specialist. Understand the types of properties that qualify for VA loans, as some fixer-uppers or certain types of condominiums may not qualify. Ensure you also understand the appraisal process and any potential implications for closing costs and timelines.

Pitfall 4: Neglecting Professional Home Inspections

While this is not common as much as it was a couple years back, it can still happen. In the rush to secure housing, some military families might waive home inspections especially in competitive markets. This can lead to costly repairs and problems down the line. Of you are using a VA loan, you can't do this anyhow.

Always opt for a professional home inspection, even if the home is newly constructed. Inspections can uncover hidden issues with the structure, plumbing, electrical systems, and more. Consider specialized inspections like radon or mold, which are not typically included in a standard inspection but can be crucial depending on the region.

Pitfall 5: Underestimating the Impact of Local Taxes and Fees

Taxes and fees can vary significantly from one locality to another and can affect your overall housing affordability. Military members sometimes overlook these when calculating their budget.  This is especially tru in areas where taxes are high, like here in Omaha.

You can't avoid taxes (unless you have a certain VA disability) research local tax rates, development fees, HOA dues, and other potential expenses. These can all impact your monthly housing costs significantly. A local real estate agent or lender can provide insights into these costs, and a financial advisor familiar with military benefits can help you budget accordingly.

Pitfall 6: Failing to Plan for Absences

Deployments or unaccompanied tours can complicate home maintenance and mortgage payments. Planning for these absences is crucial to prevent financial mishaps.  Most military members are used to moving and hopefully have systems in place if a deployment should come up, but juse be prepared if this applies to your family situation.

Set up automatic bill payments to ensure mortgage and utility payments are made on time. Consider hiring a property management company if you anticipate long periods away from home, and you don't have family staying behind or are in the area. They can handle routine maintenance and any issues that arise, keeping your home in good condition and your investment secure.

Pitfall 7: Choosing the Wrong Real Estate Agent

The right real estate agent can make a significant difference, especially when you're not familiar with the local area. An agent unfamiliar with the nuances of military relocations might not serve your best interests. Military relocations are not drastically different from other relocations, but there are unique attributes to a PCS that an agent's familiarity with will be helpful.

Seek out a real estate agent who specializes in working with military families or who was a military member or spouse themselves. They are more likely to understand the challenges and timelines you face and can provide invaluable advice and resources.

Conclusion

Buying a home as a military member can be a rewarding investment and provide a sense of stability for your family. By being aware of these common pitfalls and how to avoid them, you can make more informed decisions that align with both your financial and personal goals.

Remember, preparation is your best defense against the challenges of military homebuying. Take the time to educate yourself, consult with professionals, and never rush into a decision that doesn’t feel right. Your home is not just a financial investment but a personal one, and it should serve your needs for as long as you own it.