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Buying a home can be filled with questions

Information is king

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Before you buy your first new home, before you write your name on that expensive, 30-year mortgage agreement, you might want to get some advice first.

There's a lot to know.

And the first thing Brooke Villano, who works with Veterans National Lending Group, wants military veterans to know is that there's a zero-percent-down mortgage program available to them. That's no money down with no increase in interest rates on the loan.

"It's a benefit they earn through their service with the government, through their military service," Villano said.

However, it's an opportunity that's often missed.

"Less than fifteen percent of our veterans actually use their VA home loan benefit," Villano said. "They're just not aware of it."

The first thing Teri Matison, assistant vice president of Procura Mortgage Company, would tell you is to know your limits financially.

"One of the most important pieces I teach is don't ask how much you qualify for," said Matison, who teaches a free five-hour class once a month about purchasing a home and programs.

Instead, she strongly suggests coming up with what you're comfortable with for a monthly payment.

"Someone tells me what they're comfortable with for a purchase price, and I tell them to stick with that," Matison said. "I stress that so strongly. I don't even tell them how much they would qualify for. It's not important."

Knowing what you can afford is the key to setting a comfort level, lowering stress and risk of failure. A key in setting a mortgage threshold is to know your expenses.

"We encourage people to track their expenses for sixty days to see where they're spending their money," she said, "so they can really say where they're spending their money."

CJ Poundstone, owner of Mortgage One and a loan officer, suggests that a military family just moving into the area should get some local input. That "local" insight can offer tips about secure home investments and local rules and regulations.

"There are certain state rules that apply that some of the national organizations don't really understand or don't really have a handle on," Poundstone said, "so seek out local venders."

Poundstone, who served in the Air Force and is now a mortgage broker, has insight on both sides of the fence - military and lender.

"As a military member, that's exactly what I didn't get when I first got to McChord," he said.

He warns home shoppers about hidden costs.

"This would be my biggest piece of information that I would tell somebody who already owns a home through VA mortgage is that a lot of these programs being advertised aren't straightforward," Poundstone said.

There are adjustable mortgage rates that are back loaded, a pay-later cost.

"(There are) very high costs, but you won't see them up front," he added. "Taking away equity in the back of the load."

In his dealings with customers, Poundstone sees lots of misinformation. An important one is that there's a misconception that VA loans can only be used once. Not true.

"You can actually have multiple VA loans at the same time," he said. "There are guidelines. So, see your professional to get that."

For more information about purchasing a home, visit veteransnationallending.com, wshfc.org or mortgage1nw.com.

Matison's next VA Home Loan Boot Camp is Oct. 13 from 6-7:30 p.m. at Cabela's in Lacey.

"There's no obligation to even use the housing finance commission's programs," she said. "It's just great information about how to prepare yourself. I'd recommend that for anybody."

Villano said she gets a lot of satisfaction from her job.

"Mortgage businesses have always been around, but this is a different feeling because you're helping people buy a piece of land that they fought to protect," Villano said.

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