7 Essential Tips for First-Time Homebuyers in the Military
Updated: 1 day ago
Buying your first home is exciting, and in the military it comes with extra questions. What if we move again in two years? How do we pick a neighborhood we've never seen? Is the VA loan right for us? As a military spouse for more than 30 years and an Arlington Associate Broker with 560+ transactions, I've walked many first-time buyers through it. Here are the seven things I tell every one of them.
This article is general information, not tax, legal or financial advice.
1. Decide whether to buy, rent or live on base
Buying builds equity and gives you a home you can rent out later. Renting keeps you flexible, and living on base puts you close to work and support services. Service members often move faster than homes gain value, so buy with the end in mind. Ask yourself whether you'd be comfortable renting the home out if orders come early. My rent vs. buy guide runs the numbers.
2. Start 4 to 8 months out
Check your credit. My 90-day credit plan shows how.
Gather documents: recent LES statements, two months of bank statements, two years of W-2s and tax returns, and your orders when you have them.
Get your COE through your lender or VA.gov. My COE guide has the steps.
Save cash. Even with no down payment, you'll need money for an earnest money deposit, the inspection, closing costs the seller doesn't cover, moving costs and a cushion for repairs.
3. Understand your VA loan
The VA loan lets most eligible buyers purchase with no down payment and no monthly mortgage insurance, and there's no penalty for paying it off early. You can use it for a home with up to four units if you live in one. Most first-time users pay a one-time funding fee of 2.15% with less than 5% down, unless they're exempt. VA doesn't set a minimum credit score, but lenders set their own, so ask. My VA loan benefits post covers the details.
You can use the benefit again later. When you sell and pay off a VA loan, you can restore your entitlement. If you keep the home, you may still have entitlement left for another purchase. If an eligible veteran assumes your VA loan, they can substitute their entitlement for yours.
If you're comparing loans, conventional loans are available with well under 20% down, but you'll usually pay mortgage insurance until you reach 20% equity.
4. Get preapproved and shop lenders
A preapproval is based on your verified income, assets and credit. It sets your budget and shows sellers you're serious. Compare at least two or three lenders using the Loan Estimate each one gives you. My mortgage basics guide explains how to compare. Be completely open with your lender from the start, since surprises late in the process cause delays.
If you hold a security clearance, keep your finances steady. Clearance reviews consider financial stress.
5. Budget for the whole cost
Your mortgage payment is only part of it. Add property taxes, homeowners insurance, utilities, HOA fees, lawn care, snow removal and repairs. Plan for move-in costs too, like duplicate rent, utility deposits and restocking the house. Try to keep your total payment at or below your BAH. My budgeting guide has a worksheet.
6. Build your team
A real estate agent who knows military moves and VA loans. Since August 2024, you'll sign a written agreement with your agent before touring. My agent pay guide explains who pays.
A VA-experienced lender. Ask other military families and your agent who closes on time.
A home inspector. Every home has some issues. Ask whether the findings are normal for the home's age, and what's worth negotiating.
7. Know the words and the steps
Offer and counteroffer: each counteroffer replaces the one before it. Once one is accepted in writing, you have a contract.
Contingency: a condition that must be met or the contract can be canceled, such as financing, appraisal or inspection.
VA appraisal: VA assigns the appraiser through your lender. You don't choose one. If the value comes in low, the VA escape clause lets you renegotiate or cancel and get your deposit back.
Escrow: money or documents held by a neutral party until closing, and later, the account your lender uses to pay your taxes and insurance.
APR: the yearly cost of the loan, including the interest rate plus points and fees. It's usually higher than the rate.
Closing Disclosure: the final loan terms and costs, which you must receive at least three business days before closing.
Closing: you sign, the deed is recorded and the home is yours.
Free help and classes
HUD-approved housing counselors offer free or low-cost advice. Call 800-569-4287 or search on HUD.gov.
Virginia Housing offers a free homebuyer class, in person or online.
Military OneSource offers free financial counseling, and your installation's personal financial manager can help too.
Lenders and agents also host free classes. They're useful, but remember they're also looking for clients.
In Northern Virginia
Northern Virginia prices are high, so a first home here often means a townhome or condo near Metro or a single-family home farther out. Both can rent well if you PCS. My Northern Virginia PCS guide and free PCS Decision Guide walk you through the trade-offs.
Sources: VA.gov, purchase loan; VA.gov, funding fee; VA assumption fact sheet; CFPB, APR; CFPB, Closing Disclosure; HUD.
Last reviewed: October 2026
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