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Veterans and military buyers can face unique credit challenges. That’s a big reason why it’s important to get your credit in shape before starting the home-buying process.

Credit scores are symbols of your ability to repay debts. They’re also a make-or-break requirement for mortgage lenders.

A mortgage credit report will typically contain three scores, one from each of the major credit-reporting agencies: Equifax, Experian, and TransUnion. Your lender will use the median, or middle, score for the purposes of home loan pre-approval.

Your credit scores can also play a role in what it costs to borrow. The stronger your credit profile, the more likely you are to secure financing with a great interest rate.

Credit score requirements aren’t as stringent as they once were. But it can still be tough for some veterans and service members to secure conventional financing. Conventional lenders often require a 660 FICO score, but you’ll usually need a much higher score to access better interest rates.

The benchmark for VA lenders is usually lower, often around a 620 FICO, and credit scores have far less impact on rates for government-backed loans.

So, knowing all this, where should you begin?

Create good habits

Depending on how you use it, your credit can make or break your finances. Establishing healthy habits is crucial for building a strong credit profile.

People with excellent credit tend to share some common traits, including the following:

Staying on top of monthly payments:

Slow and steady wins the race here. Remember, it’s all about building a history of on-time payments. Creditors won’t usually report late payments until they’re 30 days past due. Your credit score can continue to take deeper hits as outstanding balances cross the 60-, 90-, and 120-day marks.

Keeping credit card balances low:

Having high balances on multiple credit cards tells lenders you’re pushing your credit (and possibly your finances) to the limit. That isn’t a good place to be when you’re thinking about taking on a mortgage. Try keeping your balances under 30% of your credit limit.

Avoiding slews of credit inquiries:

Try to limit hard inquiries on your credit report. These might cost you only a few points, if any, but multiple inquiries within a short period of time can be problematic. Sudden credit grabbing can be a sign of financial instability.

Avoiding opening and closing accounts:

When you start thinking about buying a home, it’s best to keep from making big changes to your credit unless you’re absolutely sure of the impact those changes could have on your scores. New accounts come with new monthly obligations that can eat into your house-buying budget. And while it’s usually a good idea to free up space on existing credit accounts by paying them down, closing an account can actually lower your credit scores.

Taking care of derogatory trade lines:

Unresolved issues on your credit report can cast a shadow over your home-buying chances. Don’t leave outstanding balances unpaid, and be sure to resolve any matters of public record as soon as possible. Issues such as tax liens and landlord disputes will not only damage your credit scores, they’ll also usually need to be resolved before you can close on a home.

Review your credit report

Consumers have a right to receive three free credit reports each year, one from each of the major reporting agencies. By requesting one report every four months, you can keep an eye on your credit activity throughout the year. You can get your reports and find more resources at AnnualCreditReport.com.

But you might be surprised by what’s not on those reports: your credit scores. Unfortunately, you’ll have to spend money to get a look at anything resembling the credit scores a mortgage lender sees.

While your free report won’t include your credit scores, it can give you a good indication of where you stand and what might need some work. More importantly, keeping track of your credit can tip you off to any errors, outstanding derogatory accounts, or signs of fraud.

Financial scammers frequently prey on veterans, service members, and their families. Keep an eye out for these red flags on your credit report:

• Discrepancies in your basic information
• Incorrect address history
• Accounts you don’t recognize
• Falsely reported late payments, collections, or items of public record
• Inquiries that you didn’t initiate

Report any errors or inconsistencies on your report to each of the three major reporting agencies and the creditor. Be sure to do so by phone and in writing.

Paying your bills on time, keeping account balances low, and keeping a close eye on your credit report can go a long way toward helping you build mortgage-ready credit

Qualified veterans and military buyers can tap into what’s become the most powerful home loan on the market. VA loans feature no down payment, no mortgage insurance, and more forgiving credit requirements than most other loan types.

Still, they’re not the best fit for every veteran. The key is to find the right home loan for you.

Getting a better understanding of all your home loan options can help you make the best financial decision.

Let’s take a closer look at the four major types of home loans.

VA loans

Who can use it: Eligible veterans, active-duty military members, and qualified surviving spouses. The VA doesn’t set a credit score benchmark, but most lenders will have one. A 620 FICO score is a common minimum.
What it’s all about: VA home loans are backed by the government but issued by private lenders. VA loans offer no down payment requirement, no mortgage insurance, and looser credit requirements. VA loan guidelines account for borrowers whose finances may have been affected by their service. Credit score requirements are typically lower than those for conventional loans, and the program allows for more wiggle room when it comes to debt-to-income ratios, credit scores, and assets. They also tend to have lower average interest rates than other loan types.
What to watch out for: The VA loan program is designed to help veterans and military members purchase safe, structurally sound homes they’ll occupy as their primary residence. VA loans are not available for investment properties or vacation homes. A funding fee of no more than 3.3% of the loan amount helps keep the program going and can be paid upfront or rolled into your loan amount. Buyers who receive compensation for a service-connected disability don’t have to pay this fee.

FHA loans

Who can use it: Anyone with at least a 580 FICO score (or lower in special cases), adequate income, and at least 3.5% down may be eligible to use an FHA loan.
What it’s all about: Much like the VA program, the FHA program helps increase access to homeownership through lower down payment options, competitive interest rates, and less rigorous underwriting guidelines. FHA loans also tend to have the lowest minimum credit score requirements of all the loan types. Depending on their individual approval guidelines, some lenders will even allow for exceptions to the minimum credit requirement. The FHA’s 203(k) program allows borrowers to purchase and repair fixer-uppers, lending based on a home’s projected value after rehab work is completed.
What to watch out for: FHA buyers pay both an upfront funding fee (called a mortgage insurance premium) as well as an annual mortgage insurance charge. The latter can easily add $150 or more to your monthly mortgage payment, and it’s a cost FHA buyers now pay for the life of their loan, regardless of their equity status.

USDA loans

Who can use it: Buyers looking to settle in an approved rural area who have adequate (but not excessive) income and an acceptable credit score can use the USDA loan program. USDA lenders often look for at least a 640 FICO score.
What it’s all about: Much like the VA loan, the USDA program allows qualified buyers to purchase a primary residence with no money down. USDA-eligible homes are located in what the agency deems qualified rural areas. Buyers need to verify that a property is located in one of these eligible areas. Along with no down payment, another big benefit of USDA loans is that buyers can finance their closing costs.
What to watch out for: USDA puts a cap on income for eligible borrowers. These limits vary by region and family size and can change annually. Like FHA loans, USDA loans come with both an upfront mortgage insurance premium and an annual mortgage insurance fee.

Conventional loans

Who can use it: Anyone with qualifying credit (in the ballpark of a 660 FICO or higher), adequate income, and a 5% down payment in most cases. Some lenders may offer conventional financing with just 3% down.
What it’s all about: In terms of credit scores and debt-to-income ratios, these loans have higher barriers to entry than the government-backed options. Conventional lenders are looking for borrowers who have well-established credit, solid assets, and steady income. The upside is that when it comes to the kind of property you can purchase, you’ll have more freedom with conventional financing. That means you can use this type of loan to buy a second home or an investment property.
What to watch out for: Buyers putting less than 20% down will pay PMI, or private mortgage insurance, until they build sufficient equity in the property. These fees can easily add $100 or more to your payment every month. Unless you have excellent credit—think 740 or above—a conventional loan may come with higher rates and fees.

The home-buying experience changes vastly from season to season. Depending on when you’re looking to buy, you’ll face different levels of pricing, housing inventory and competition from other buyers.

For veterans and military members, the challenge is you don’t always get to choose your home-buying timeline. Active duty service members often move every two or three years, meaning military families relocate 2.4 times as often as civilians.

While most people buy in spring or summer, that doesn’t necessarily mean it’s the right time. Each season has its pros and cons, and the best time to buy depends on your own circumstances.

We’re here to help. Let’s take a look at the four seasons of real estate and what veterans and military families might encounter during each.

Spring

Pro: If a home isn’t blanketed in snow, it’s way easier to spot potential problems. Issues with the roof, air conditioning and pool are more detectable after the spring thaw, says Sharon Voss, president of the Orlando Regional Realtor® Association.

Also, there’s a lot less pressure. It’s likely there will simply be fewer buyers in spring, especially on the early side of the season. So buying frenzies aren’t as plentiful—or as frenzied. (But beware: In some markets, the spring season heats up right after the Super Bowl.)

Con: Slightly fewer choices than summer, when inventory hits its peak.

Summer

Pro: It’s simple—there are more homes on the market.

“Inventory is at its peak in June, July, and August. On average across the U.S., a buyer is going to have more choices in those months,” says Jonathan Smoke, former chief economist of Realtor.com®.

“This can be very good, especially if you’re looking for specific features or want to live in a particular neighborhood,” says Dave Fry, co-owner of the Fry Group in Saint Paul, MN. You’re more likely to find your dream home when more homes are on the market.

There are lots of reasons why summer is the hot season for real estate. High on the list: If you have kids, it’s easier to move the family. “Summertime moves are less likely to conflict with the school calendar,” Voss says.

Con: Of course, there’s more competition. Lots more.

“The potential for bidding wars can be greater during the busy late spring and summer seasons, so you may not be able to get the bargain you were hoping for,” Fry says. Voss notes that you’ll be vying for attention from busy agents, lenders and home inspectors as the market heats up.

And you can expect firm asking prices.

“You may not be able to negotiate, as someone else may swoop in and offer more,” Fry says. Sellers may reject any lowball offers or any offer that comes with specific contingencies or requests.

Fall

Pro: It’s prime time to negotiate.

“Off-season sellers are typically more motivated, thus more willing to make a deal,” Fry said. Since there are fewer buyers, sellers may be more inclined to entertain lower offers or pay for needed repairs. Lenders may also be willing to negotiate closing costs to win business from a smaller buyer pool.

You might just find a steal. Sometimes a house is on the market during the off-season because of an urgent event—for example, a death in the family or a sudden job change, Smoke says. If you’re in an area that’s dealing with massive employee layoffs, or where companies have left town, there could be a glut of homes on the market priced to sell.

Con: Once again, less inventory. Most buyers prefer to wait at least until spring to list their home, so buyers looking for that perfect house can end up frustrated.

So there’s a chance you could end up with a straggler. “Some of the homes that are on the market during the slow seasons are available only because, in essence, they’ve already been rejected by the market earlier,” Fry says. Ask your agent why a home hasn’t sold if it’s been on the market for a while.

Pro and Con: Don’t have kids in school? This could be a good time to shop.

“If you’re not as sensitive to the school calendar, you might find it easier to find a home in the fall and winter months,” Smoke says. But if you’re just as much a slave to the school bus as your kids, moving during the school year could be a major challenge.

Winter

Pro: Less competition. By a lot. With fewer people looking for houses, potential buyers are treated with tender loving care. It may be easier to land a better deal when you don’t have to elbow other buyers out of the way.

It’s also a nice time to make an investment. If you’re looking for a home for investment potential rather than a place to live forever, the off-season is a smart time to buy. According to Smoke, investors are more likely to snap up foreclosures and REOs during the off-season.

Con: You thought the pickings were slim in fall? The flow of homes going on the market gets smaller and smaller into the end of the year, and usually reaches its lowest point in December.

It can also be a hassle. Bad weather makes it difficult to get around, holiday obligations can slow down your search and homes become harder to inspect. Snow on the ground—and on the roof—makes an inspector’s job substantially more difficult.

“The cold weather and snow can hide aspects of the home that wouldn’t be as easy to miss if the inspection were conducted in warm weather,” says Mike Mishkin, founder and CEO of Love Where You Live Realty. And while it may not be a structural issue, the same holds true for the landscaping.

Ultimately, the best time to buy a house depends on your own specific needs. But let’s face it: Military members and their families may not even have a choice of timing. That’s where a great real estate agent can be invaluable. So can having an understanding of the seasonal advantages and disadvantages when it comes to buying your home.

So you’ve found the right home, and you’re under contract. What comes next?

For starters, you’ll almost always want to invest in a home inspection. Inspections aren’t required, but they’ll give you a deeper look at the property and its possible problems. You’ll also need an appraisal and a final review of your loan file by the lender’s underwriting staff.

Your role in this is incredibly important. Some military buyers expect to skate through the loan process and often find themselves frustrated by standard documentation requests in underwriting. The fact is that lending guidelines today are stricter industrywide.

A simple shift in perspective can mean a world of difference in your home financing experience. You should come to the table prepared to prove to an underwriter that you’re an excellent candidate for mortgage financing.

Inspection & appraisal

The inspection and appraisal are your chance to vet your new home for any major issues before you fully commit to buying it. Most purchase contracts contain contingencies that allow buyers to walk away from the deal if an inspection reveals problems or an appraisal comes in low. In fact, an appraisal is required for VA purchase contracts.

Let’s make one thing perfectly clear: An inspection is not an appraisal. For most veterans and military buyers, an appraisal should never take the place of an inspection.

Let’s look at the purposes of each item:

Inspection:

• Includes structural reports
• Includes detailed information about a home’s electrical systems and overall condition
• Includes detailed information about a home’s water and sewage
• Is typically paid upfront by the buyer

Appraisal:

• Is required for most loan types, including VA
• Is conducted primarily for the purpose of valuing a property
• Will not include structural reports or a detailed assessment of the property’s major systems or condition
• Is typically paid upfront by the buyer

Your real estate agent may be able to recommend quality home inspectors in your area. Lenders will order an appraisal on the property.

With VA home loans, the government assigns an independent appraiser to conduct the appraisal. If you’re using your VA loan benefit, then you should allow plenty of time for an appraisal. Most VA appraisals are completed within two weeks, but timelines can vary depending on where in the country you’re located and other factors.

Loan processing & underwriting

Loan underwriters are extensively trained in the business of making approval determinations on home loans. That means they’re on the front lines of maintaining a healthy housing market. It’s a role they take very seriously.

Underwriters scour every loan file looking for discrepancies or gaps in information. They have a responsibility to follow ever-changing lending guidelines, which means they often operate under the “more is better” philosophy when it comes to loan documentation.

Don’t panic if your loan officer requests more documents after you’re under contract. Loan files almost always require more information and documentation. What’s important is answering those questions and returning key documents as soon as possible.

What to avoid

A few common mistakes can throw your loan off track and lead to a seemingly unending string of documentation requests.

Until your loan is closed and funded, try to avoid the following:

• Opening new credit accounts
• Letting other lenders pull your credit
• Getting a payday or other personal loan
• Co-signing on any loan
• Closing credit accounts
• Changing jobs
• Transferring money between accounts
• Making large cash deposits into your accounts

In short, the best way to keep your loan on track is to maintain stability. Make your payments on time, curb your spending, and stay put. Lenders will take another look at your credit and employment situation before your loan closing.

Closing day

After your loan is approved, there are still a couple of steps to complete before you get the keys to your new house.

Your lender will work closely with your title agent or attorney to prepare your final closing documents. These documents will detail how much money you need to bring to your loan closing, if any. A closing underwriter will review the documents if any last-minute changes are needed.

Be sure to talk with your loan officer if you have any questions about the cash you need to close or anything else related to this milestone.

In some cases, your mortgage will fund the same day, meaning you could leave your closing meeting with keys in hand. Lenders will need to obtain an “Alive and Well” statement at the time of closing for service members and their families using power of attorney.

Though it might be difficult in your most stressful moments, it’s helpful to remember that the road to loan approval has been designed to protect you from dangerous real estate market fluctuations that can result from faulty loan decisions.

The experts guiding you through the home loan process create a system of checks and balances that helps to support your investment, long-term security, and financial health.

At the end of the home-buying process, you will be faced with closing costs, the fees due at signing required to complete a home sale. Closing costs can be expensive, but some of those fees may be negotiable—and you can ask the seller to cover some or all of them.

Veterans and military members in particular can tap into closing costs savings. When you buy with a VA loan, there are certain closing costs that the VA does not allow home buyers to pay. These include pest inspection fees, mortgage broker fees, and more.

Title companies, attorneys, inspectors, and other third parties may also offer military discounts.

To be sure, there’s no getting around closing costs, no matter the financing path you choose. But you can take a few different approaches to tackling these costs and fees when it’s time to wrap up your home purchase.

Check the market temperature

The nature of the housing market may dictate whether the buyer or the seller picks up various closing costs.

If it’s a buyer’s market—a bit cold and homes aren’t selling well—sellers may be more willing to bargain and take on some closing costs.

If it’s a seller’s market—the market is hot and homes are selling quickly—the seller has the advantage and little incentive to give the buyer a break.

However, you shouldn’t accept any fishy-looking fees without asking about them first.

Which closing costs are negotiable?

When you apply for a loan, your lender must provide an initial estimate of fees due at closing.

This is a very useful tool, but bear in mind these are estimates—not guarantees. Compare your Initial Loan Estimate to the final Closing Disclosure you receive to look for big differences.

Some fees are generated by third parties and typically don’t change very much, no matter where you find your loan. Then there are additional expenses you can’t control, like taxes and government fees.

Some negotiable fees may include the following:

Title insurance:

The lender will recommend one, but you don’t need to accept it. You can shop around, compare fees, and go with the one that suits you best. However, you can’t have this waived.

Application fee:

Some loans have an application fee. Ask your lender if it will waive or credit this fee toward closing costs.

Miscellaneous fees:

Ask exactly what these are for, especially if they are high.

Courier and mail fees:

With almost everything being digital, your lender should provide evidence these fees were necessary.

Discount points:

These increase your closing costs but reduce your interest rate. If you have discount points and your closing costs are too high, you may want to eliminate them. Talk it over with your lender and be sure to figure out the new monthly mortgage payments if you do.

It’s your right to question anything on your loan estimates and closing disclosures, so do ask questions if you believe a cost is too high or doesn’t make sense.

Seller concessions
So how much can you ask the seller to pay? It depends in part on the type of home financing. You can typically ask the seller to pay up to 3% toward your closing costs in a conventional transaction and 6% in an FHA purchase.

The VA allows sellers to pay all of a buyer’s mortgage-related closing costs and up to 4% toward prepaid expenses and other concessions.

Sellers may want to see you increase your offer on the home to offset their concessions, but keep in mind the property will have to appraise for that higher amount.

If a seller won’t budge, another option may be to have your lender cover your closing costs. Lenders will typically give the buyer a higher interest rate and use a lender rebate to pay those fees.

Don’t get intimidated by closing costs

As you review your closing costs, be your own advocate. Always make sure you receive a thorough explanation of any fees that seem unusual, unnecessary, or just too costly.

Go over these documents in detail with your real estate agent, and plan your closing cost strategy before making an offer.

Veterans, service members, and their families believe in homeownership. In fact, the homeownership rate among veterans far outpaces that of civilians.

But the financial toll of military service can make it tough for some veterans to get a financial foothold, let alone land a home loan.

The good news is those who serve have access to a host of home-buying benefits and protections, from what’s arguably the most powerful home loan on the market to financial safeguards and more

Let’s take a closer look.

VA loan program

Since the VA loan program’s inception in 1944, the Department of Veterans Affairs has backed more than 21 million loans for veterans, active-duty military members, and their spouses. This program has made buying a home more accessible to those who most deserve the American dream they helped build and protect.

VA loans feature many benefits that help make home buying possible, including the following:

• No down payment requirement
• No mortgage insurance
• Lower average interest rates
• Limits on closing costs
• More lenient credit requirements

VA home loans have boomed in recent years, attracting many veterans and military members who may not qualify for conventional loans, which have stricter credit requirements.

Still, many eligible buyers are unaware of the benefits of VA home loans and the protections they offer. Some buyers also make the mistake of assuming a government-backed loan comes with endless red tape and miss an opportunity to benefit.

Typically, veterans and active-duty service members are eligible for a VA home loan if they served in the following capacity:

90 consecutive days on active duty during wartime
181 consecutive days on active duty during peacetime
6 or more years in the National Guard or Reserves

Some spouses of military members who died in the line of duty or of a service-related disability may also be eligible for a VA loan.

Talk with a VA lender about obtaining your Certificate of Eligibility and getting a sense of your purchasing power.

Occupancy & power of attorney

VA loans are focused on getting buyers into homes they’ll live in full time. But the program makes exceptions for some veterans and active-duty service members.

For example, a spouse or children may be able to fulfill the occupancy requirement on behalf of a VA buyer. Also, a VA buyer who is deployed or otherwise unable to manage the loan process can typically assign a power of attorney to a spouse or family member to manage the loan process and sign documents.

There are two types of power of attorney: general and specific. The type needed depends in part on what loan-related documents the VA buyer can sign.

The occupancy and power of attorney options mean an eligible VA buyer’s spouse and children could buy a home during a deployment or unaccompanied assignment, helping alleviate the emotional toll of multiple moves on military families.

Basic allowance for housing

Many active-duty military members who receive a monthly housing allowance are surprised to learn that they can use this money to qualify for a home loan. Lenders can count Basic Allowance for Housing (BAH) as effective income. That can help service members make the leap from renting to owning, especially in higher-cost areas.

BAH is based on several factors, including the location of your duty station, your pay grade, and your family size. The housing allowance can change on an annual basis. To calculate your BAH, refer to the BAH calculator on the Defense Department’s website.

Financial protections

Even after becoming homeowners, active-duty service members can face unique financial challenges. Deployment and changes of station can strain a family emotionally and financially.

The Servicemembers Civil Relief Act (SCRA) provides active-duty military personnel and their families financial protection involving interest rates, income tax payments, eviction, foreclosure, and more.

For example, military personnel can ask creditors—including their mortgage lender—to cap their interest rate at 6% for any pre-service debt obligations during their term of service. The SCRA also forces lenders and servicers to seek a court order to foreclose on active-duty military members during their time of service and up to nine months afterward.

Veterans Affairs also offers foreclosure avoidance protection assistance for homeowners. The VA has a team of experts who work with lenders and servicers on behalf of struggling homeowners to find alternatives to foreclosure. Their efforts have helped nearly 500,000 veterans and service members avoid foreclosure in the past six years alone.

Check with your local Armed Forces Legal Assistance office for more information regarding the Servicemembers Civil Relief Act. VA homeowners in jeopardy of defaulting on their mortgage can contact the VA loan program at 877-827-3702.

Finding your dream home is the fun part. The challenge is crafting a purchase offer that entices sellers, protects your interests, and maximizes your budget.

Veterans and military buyers should lean on their real estate agent for help to strike the right balance. A seasoned agent is your best advocate and expert, whether you’re preparing to purchase at your new duty station or searching for your retirement home.

Here’s a look at a few key considerations when it comes to making an offer on a home.

Come to the table prepared

Pre-qualification is a good first step, but it’s also a basic one. You’ll want to go a step further and get pre-approved for your home loan before you start your home search. It’ll give you a realistic idea of what you can afford, and you’ll be ready to make an offer if you see a home that you love.

For veterans and service members using their VA home loan benefits, the good news is you won’t need any money down in most cases. Yet the seller should know that you’re a highly qualified buyer, because you’ve gone through a rigorous screening process.

Some real estate agents won’t accept an offer on a home without a copy of the buyer’s pre-approval letter.

Look for something Uncle Sam would love

If you’re using FHA or VA financing, the home you select will generally need to be in move-in-ready shape. The appraisal process for government-backed loans includes a broad assessment of the property’s condition.

“Buyers can get really impressed with a house, but it’s my job to make sure that the price is going to line up in terms of the VA appraisal,” says Duan Rockette, a real estate agent with Berkshire Hathaway HomeServices Select Properties and a retired Marine Corps First Sergeant.

That appraisal doesn’t just look at whether the home is worth the price you offer for it, but also whether it meets the VA’s minimum property requirements.

“I try to be open and upfront with the seller, even before writing the offer, asking them if they’re willing to address any repairs that may be an issue from the point of view of VA guidelines,” says Elisha Gutloff, a broker at Keller Williams in Raleigh, NC, who has worked with many veteran buyers.

The goal is to make sure buyers don’t purchase a home that’s unsafe or that could be difficult to sell down the road. You probably want to steer clear of fixer-uppers—and you might even get some concessions from the seller.

“With one home, the inspector came back and determined the carpet wasn’t sanitary, so the buyer got new carpet in the stairway and the first floor,” Gutloff says.

Have a backup—actually, have several

As any active-duty military family knows, sometimes you need to find a home, double quick. That means that if your first choice falls through, as often happens, you need to have a second choice lined up. And a third. And a fourth.

“I set the expectations with the buyer that it’s not a deal until you have that contract accepted,” says Rockette.

Protect yourself

Talk with your agent about what kind of contract contingencies you might need. Many would-be buyers insist on a home inspection contingency. These allow you to get an in-depth look at the property and reopen the contract to negotiation based on the results.

You’ll also want to safeguard your earnest money deposit in case the deal falls through because of a low appraised value or another issue beyond your control.

This isn’t something VA buyers have to worry about—these loans automatically protect a veteran’s earnest money in the event of a low appraisal. Consult with your agent if you’re using a different type of financing.

Pay attention to closing costs

While first-time buyers often focus on the sale price of the property, the reality is that they’re likely financing the total sum over a period of 15 to 30 years.

“You may bring the price down by thousands of dollars,” Gutloff says. “But it’s only between $5 and $20 a month.”

On the other hand, closing costs require the buyer to come up with cash in a lump sum. So Rockette encourages his buyers to ask the seller to cover closing costs, even if it means offering a slightly higher purchase price. (Also, the VA does not allow buyers to pay certain types of closing costs.)

In any mortgage transaction, how much a seller can pay depends in part on the type of financing you’re using. It’s typically anywhere from 3% to 6% of the purchase price.

When it comes down to it, making an offer on a home comes down to being prepared and organized. Knowing all this will help you evaluate your housing choices with clear eyes, make an offer, and buy a home where you can settle in and build the next phase of your life.

Wondering how to choose a Realtor®? Purchasing a new home takes some serious prep work—from cleaning up your credit score to amassing a down payment.

But, hey, we’re just getting started! You also need a comrade in arms: a close ally to help steer you toward homes you’ll love more than life itself, find the best possible mortgage, and all in all help you through this emotionally and financially taxing process. That’s where a good real estate agent can make a world of difference.

Here’s how to find one who’s got your back. And your front. Every side, actually.

How to choose a real estate agent

The first thing you might notice while trying to find home-buying help is all the different titles: agent, broker, Realtor®, etc. Are they all the same thing? Not exactly.

A Realtor® is either an agent or broker who is a member of the National Association of Realtors®. Realtors adhere to a detailed code of ethics to treat their clients honestly and fairly. Consider it added insurance that they’re committed to your cause.

A real estate agent is anyone who’s earned a license to sell property, which typically entails taking 100+ hours of course work and then passing a state exam. A broker is someone who’s continued his studies and can hire agents to work under him.

Conduct a preliminary search online

We shop online for everything these days, and finding a real estate agent is no different. To locate ones in your area, use online tools such as Realtor.com®‘s Find a Realtor search, which will give you useful info such as the Realtor’s number of years of job experience, number of homes sold, and the price of homes typically dealt with. Take note of a Realtor’s track record, because this can tip you off to superstar agents nearby and whether they’re a fit for your needs

Don’t settle for ‘good enough’

According to the NAR, more than half of first-time buyers found their Realtor through a friend—and two-thirds contacted only one agent before moving forward. That’s kind of like having your friends set you up on a blind date, then marrying that person by Date No. 2. After all, how can you be sure you made the right choice without looking around? Simple: You can’t.

“One of the things I always tell my prospects is, ‘I’m flattered if I’m the only Realtor you are speaking to, but I think it’s best if you speak with two or more so you can draw comparisons and make a powerful decision,’” says Brett West, an agent with McEnearney Associates.

Trust us, there can be a huge difference between an agent who’s “good enough” and one who’s stellar—the difference between finding your dream home or not, and saving or wasting tens of thousands of dollars.

So the extra legwork you do now could really pay off in the (not so) long term. Be sure to explore at least a few options and grill them thoroughly before settling down with one.

Ask 5 key questions before picking a Realtor

Ask a prospective Realtor all of these questions. This is no time for being shy.

A true professional will have no issues with you asking questions. Reaching a certain comfort level with your agent is key to calming the anxiety around your house hunt.

1. How long have you been in real estate?

You’re looking for a seasoned agent—and while they don’t need to have decades of experience, less than a year or two of experience can be concerning.

2. How long have you lived in this area?

One noteworthy exception to the previous question is if they’ve lived in the area for a long time.

“A newly licensed agent shouldn’t be automatically removed from consideration,” says Mindy Jensen, a Realtor with Equity Colorado Real Estate. “If they’ve lived in the area their entire life, they likely know more about it than an agent who has been in the business for years but only recently moved to the region.”

Weigh overall experience against local experience when making your decision.

3. Do you have a team, or do you work alone?

Many standalone agents are excellent, but don’t ignore the value of a team.

“Working with a team is important,” says Angelo Puma, a real estate agent in Keller, TX. “It increases response time and availability. Often, solo-run agents are double-booked when you need their attention, and you may lose that perfect property.”

4. What is your schedule?

If they’re not a full-time agent, you need to know when they’ll be available.

“If the only time you can see houses is in direct conflict with times they have to be working their other jobs, you could miss out on a lot of properties,” says Jensen.

5. Do you have any vacations planned?

If they’re heading out of the city anytime soon, make sure they have a back-up in case you find the perfect home while they’re out of the country. “Murphy’s Law rules Realtor vacations,” says Jensen.