1st Home purchase

2 Replies

Good afternoon all! 

I am in search for advice/ an investing mentor. 

I am currently serving active duty in the United States Marine Corps, and have been relocated to Chicago. 

My wife and I are trying to find and close on a house before mid October; my question is what should I do know when applying for my mortgage loan and what questions should I be asking to the agency.. I have currently been pre qualified through Veterans United home loans for 250,000.

 I understand the process of obtaining a loan and buying the home, but I do not want to be blindsided by something I do not yet know about. 

Also, if there's anybody out there that is familiar with the Chicago real estate market I would love to meet with you to kind of get an idea of what I'm getting into.

Being that your active duty you should be able to get 0% financing. Have you considered house hacking a mulit-unit building? (Look that up if you're not sure what that is.) I would also encourage you to find an investor friendly agent here on BP using the networking tool.

@Trevon Peracca Thank you for your service!

When you're using your VA benefits, there's lots to consider but it's well worth it.

  • VA appraisals are only acquired through the VA, so ask how long that has been taking for the area. My headquarters is in Lombard, and it's been about 2 weeks just to get someone out there lately.
  • Ask if they perform their own "Notice of Value". If they wait for it to come from an authorized underwriter, that adds about 10 days after the appraisal report is done, before you can use it to be underwritten. So you loan is now 3 weeks in before you even know if you're approved. If they are able to do their own Notice of Value, then you'll get it 1 to 3 days after the report is in. Your real estate broker should be made aware also before you make offers, so they can ask for a longer escrow if necessary. If your agent doesn't know what this is, go elsewhere. They won't know VA loans well enough.
  • Ask what their average days to close the loan is? You agent/broker can do that for you as well before you make offers.
  • You will have to pay for a termite inspection if the sellers are not willing to. Consider if there is termite repairs, who will pay for them. It can't be you if you don't own the property, but you can invoice them if the contractor lets you and the seller won't pay.
  • Stick with home with city water and sewer. Otherwise you'll have those to be inspected and cleared by the municipality who manages it, if it's well water and septic. Then remediation if necessary can get time consuming and expensive.
  • Just remember you can only use your VA benefits if you're living in the home as your primary residence. You'll have to consider other financing if you're looking to invest. But you can turn your primary home you bought with your VA benefits, into an investment property 1 year or more after you've lived in it.

That cover's the basics. Good luck to you.