Common Mistakes by Hawaii VA Home Buyers


  1. Not working with a realtor who knows the VA process
    • From contract language, the loan process, property selection, and transaction timeline purchasing a home using a VA loan requires knowledge specific to a VA transaction. Talk to your realtor and ask how the process is different from purchasing with a conventional mortgage. It will save you time and ensure you the best shot of owning a home.
  2. Not working with the right lender
    • Not all banks & lenders offer VA loans. Some lenders and loan offers specialize in them. Ask your realtor for referrals and talk to them. Ask them questions about the process, time frames, closing costs, etc. The loan officer should be able to walk you through the process from acceptance to closing.
  3. Not finding the right property
    • If you’re looking to buy a fixer upper with a VA loan you’re going to be in for a rough transaction. Since VA loans can be 0% down loans and they are guaranteed by the U.S. Department of Veterans Affairs (VA) they are required to meet certain levels of property condition. A VA appraiser may red flag items that will need to be addressed before closing. Even simple things such as chipping paint could be an issue.
    • Many VA buyers in Hawaii choose to purchase a condo or townhouse. Due to various guidelines condos and townhouses need to be VA approved in order to purchase using a VA loan. Click the link below to see VA approved condos.
    • VA Approved Condos
  4. Not knowing closing costs
    • Because of the nature of VA loans and the ability to purchase with 0% down “cash to close” sometimes becomes an issue. If you are not able to receive a credit to offset closing costs then you may need to bring some money to the table. This is why #2 is important. Ask your loan officer to take different interest rates into account and give you an idea of what costs you will need to cover.
  5. Too much debt
    • One of the most common mistakes of all buyers is having too much debt. There is a certain debt-to-income (DTI) ratio that all borrowers must meet in order to qualify for a loan and VA borrowers are no exception. Large monthly car payments can drastically affect your qualification. Talk to a VA approved lender and get pre-qualified.