We Bought a Home!
We Bought a Home!
There have been times in our military career that my spouse and I have had to be separated for a period of time. When we last PCS’d, my spouse had to stay behind and finish the job while I had to move ahead and start the kids in school. During that time, we decided that the house we really wanted was yet to be built. So, while on my own, I built and closed on our new house.
We used a VA loan to purchase our home with no money down and were able to roll over the closing costs into our mortgage, so we paid no money out of pocket!
It was the first house we had purchased in 15 years, and it was one we knew we would live in longer than three years. It was a really growing time for our entire family, but so worth it.
MilSpouse Money
Mission Response:
Congratulations on your new home! How exciting! Periods of separation are never easy, so great job handling such a major purchase on your own. For others who may be in the market for a new home, we recommend checking out our 5 Rules for Buying a House. This may help you and your spouse prepare for that big step.
For Suzann and many families, the VA loan may be a terrific option. One huge benefit, as Suzann mentioned, is that a down payment is not required. However, we encourage saving for a down payment on a home even if you don’t have to make one. This savings could help you pay for the VA Funding Fee or for move-in expenses that make the home yours. And, if you choose to make a down payment, you will pay less in interest costs over the life of the loan. Visit the VA website to learn more about VA Home Loans by clicking here.
Whether it’s a new home or a new car, major purchases can sometimes put a strain on your budget. Try to avoid acting on impulse and have a level head and a plan in place. It sounds like Suzann and her family waited for the right time and had a plan. Remember that every family’s financial situation is unique, so make sure you research your options and what makes sense now and long-term.
Just a few tips to keep in mind from financial experts:
- Housing expenses should generally be less than 25% of your pre-tax pay.
- Transportation expenses, including payment, insurance, fuel and maintenance, should be less than 15% – 20% of pretax pay.
Visit Money Ready 301 for more information on Major Purchases.
