Buying a House in California with Military Benefits: A Step-by-Step Guide

Bridgepoint Funding is a California-based mortgage company that specializes in VA loans. Because of that, we often provide helpful advice for military home buyers across the state.

In this article, we will explain how you can buy a house in California with one of your biggest military benefits, the VA loan.

Buying a House in California With Military Benefits

The VA home loan program is one of the most significant benefits for veterans and active-duty service members In California. Eligible borrowers can use this program to buy a house with no down payment.

VA loans tend to have lower interest rates and more flexible qualification criteria, as well.  Additionally, this program does not require private mortgage insurance, making it a more affordable option for military families.

Here are some of the steps involved when buying a house in California with military benefits, including a VA loan.

Using Your VA Loan Benefits

The steps to using a VA loan can vary depending on the situation. But for the most part, the process usually works like this:

• Determine your eligibility for a VA loan by obtaining your Certificate of Eligibility (COE).
• Work with a VA-approved lender who is knowledgeable and experienced with this program.
• Learn about the benefits of a VA loan, such as no down payment, no mortgage insurance, and lower interest rates.
• Consider all types of properties, including single-family homes, condos, and townhomes, that are eligible for VA loans.
• Be prepared to pay a VA funding fee, which can vary depending on your military status and down payment amount.
• Seek guidance and support from a VA-approved lender and a qualified real estate professional throughout the home buying process.

Getting Pre-approved for a Mortgage

If you want to use your military benefits to buy a house in California, it’s wise to get pre-approved for a mortgage loan. This can help you prepare for the house hunting process by identifying a specific price range.

• Determine your budget and what monthly mortgage payment you can afford.
• Gather all necessary documentation, such as tax returns, pay stubs, and bank statements.
• Get pre-approved for a specific loan amount, based on your income.
• Understand the difference between fixed and adjustable interest rates, to determine which one might be best for your situation.
• Ask questions and seek clarification on any aspects of the pre-approval process you don’t understand.
• Try to avoid taking on new debt during and after the pre-approval process, as this could affect your ability to obtain financing.

House Hunting

So, you found out you that you’re eligible for a VA loan and you got pre-approved for a certain amount. Now it’s time to put those military benefits to use, by entering the real estate market. Here are some things to keep in mind as you start house hunting:

• Determine your budget and stick to it. This will help you stay within your financial comfort zone, while avoiding potential hardships down the road.
• Make a list of your must-haves and nice-to-haves, and be willing to compromise.
• Research neighborhoods to find the best fit for your lifestyle.
• Use online tools to search for and identify homes that meet your criteria.
• Work with a reputable real estate agent who can guide you through the process.
• Attend open houses and schedule private showings to see homes in person.
• Take notes and photos during showings to help you remember each property.
• Ask questions about the home’s history, condition, and any necessary repairs or upgrades.

Making an Offer

At this stage, you have found a home that meets your needs and you’re ready to put an offer in. Here are some considerations as you put your offer on paper:

• Understand the local market conditions and recent sales in the area.
• Determine your maximum offer and the terms of your offer.
• Consider including contingencies in your offer to protect yourself, such as a home inspection contingency or financing contingency.
• Write a personalized letter to the seller to help make your offer stand out.
• Be prepared to negotiate with the seller (using your agent as an intermediary), but also be willing to walk away if the terms are not favorable.
• Offer a larger earnest money deposit to show your commitment to the purchase.
• Be flexible with the closing date to accommodate the seller’s needs, and to find acceptable middle ground.

Having a Home Inspection

You’re not required to have a home inspection when using VA loan military benefits to buy a house in California. But it’s usually a good idea to have one performed. If you decide to have an inspection, keep the following tips in mind:

• Hire a reputable and experienced home inspector to conduct the inspection.
• Attend the inspection and ask questions to gain a better understanding of the property’s condition.
• Review the inspection report carefully and thoroughly.
• Take note of any major or minor issues found during the inspection.
• Prioritize the issues found during the inspection and determine which ones are deal-breakers.
• Negotiate with the seller to address any major issues found during the inspection.
• Take the time to fully understand the property’s condition before making a final decision on the purchase.

The Closing Process

Hang in there, you’re almost at the finish line! Closing is the final stage in the home buying process when using a VA loan. Here’s how it typically goes down:

• Review the closing disclosure carefully and ensure that all terms are accurate and as expected.
• Bring all necessary documents and identification to the closing.
• Schedule a final walkthrough of the property before the closing, to ensure that any repairs or agreed-upon changes have been made.
• Confirm the payment amount required for closing and have the funds ready in the form of a cashier’s check or wire transfer.
• Understand the fees associated with the closing process and be prepared to pay them.
• Verify that all necessary paperwork has been signed and that you have copies for your records.
• Ask questions and seek clarification on any issues that arise during the closing process.
• Celebrate your new home and the completion of the closing process!

Have questions about the VA mortgage program? We specialize in offering VA loans to military members in California, and we serve borrowers across the entire state. Please contact us if you have questions about using your military benefits to buy a house in California, or if you would like to apply for a loan.