Buying a Home in San Diego with a VA Loan

This is a guest post by Kevin Pearia.  He is a mortgage commentator for Veterans United Home Loans, the nation’s leading dedicated provider of VA Home Loans.

For many veterans returning from Iraq and Afghanistan the thought of purchasing a home and finally settling down is a common one, and many choose to settle near familiar military bases. One popular destination for veterans is San Diego due to the large number and variety of bases around the city – not to mention the mild climate and numerous sunny days.

While conventional lending does offer financing options to veterans wishing to purchase a San Diego home, the VA home loan program, which specifically caters to the needs of military members, is by far one of the most affordable and accessible lending options available to veterans and active duty service members.  Through the VA home loan program veterans are able to purchase a home without the need of a down payment and without purchasing private mortgage insurance, both of which can save a borrower thousands in out of pocket expenses.

However, purchasing a home isn't as easy as applying for a VA loan.  One of the most difficult parts of the home buying process is simply finding a home. Previously, San Diego wasn't an easy place to find VA-approved homes, but that has changed in recent years as more property owners are seeking eligibility in order to sell to additional markets. Even with the influx of VA approved homes, one of the most stress free ways to find a dream home is to find the right realtor.

Realtors know the different neighborhoods, and will be more likely to cue any veterans to any home deals that may be listed in the area. They also take all the guesswork out of trying to decide if the neighborhoods, schools, and area commute is good, and will be able to keep an interested buyer within their designated pre-approval amount so that a buyer isn't overextending themselves each month.

While a realtor will keep a veteran's monthly budget in mind when looking for a suitable home, interested buyers need to also keep a strong grasp on their own finances to make sure that they are able to afford the costs of owning a home. Although the VA home loan program makes homeownership affordable and does even offer programs to prevent foreclosure, there are a few things every veteran should do to make sure they can ultimately afford a home:

ñ  inquire about the monthly utility costs

ñ  determine monthly military stipend

ñ  estimate monthly maintenance expenditures

If a borrower is certain that they have the extra cash to not only pay the mortgage of a new San Diego home, but also any additional utilities and upkeep, then purchasing a home may be a great option. However, if finances still seem a bit weak, interested veterans should either consider downsizing the size of home they wish to purchase or put off purchasing one for another year or so. A home should be a place of solace, not make a borrower house poor.  Veterans who question their financial stability would greatly benefit from the additional time needed to stabilize their finances, so make sure to keep that in mind when searching for a home.