Chicago, IL (PRWEB) February 03, 2013
The Federal Savings Bank encourages former servicemembers who are also looking to purchase their first home to apply for a VA home loan and take advantage first-time homebuyers of the current state of the housing market.
Prices are still near historic lows and home values are beginning to increase across the country, making conditions favorable for veterans who want the best deal through a VA home loan.
While prices are low home values are truly rising. "The November monthly figures were stronger than October, with 10 cities seeing rising prices versus seven the month before." said David Blitzer, chairman of the Index Committee at S&P Dow Jones Indices. "Phoenix and San Francisco were both up 1.4 percent in November followed by Minneapolis up 1 percent. On the down side, Chicago was again among the weakest with a drop of 1.3 percent for November.
Veterans who are open to moving to a different area of the country might want to look at homes in the Southwest. Las Vegas and Phoenix have affordable housing and are coming back from a housing downturn that resulted in a record number of foreclosures.
"Winter is usually a weak period for housing, which explains why we now see about half the cities with falling month-to-month prices compared to 20 out of 20 seeing rising prices last summer," said David Blitzer. The better annual price changes also point to seasonal weakness rather than a reversal in the housing market. Further evidence that the weakness is seasonal is seen in the seasonally adjusted figures: only New York saw prices fall on a seasonally adjusted basis while Cleveland was flat."
Steps to take before purchasing
The Federal Savings Bank suggests to veterans who would like to purchase a home in the next few months to make sure they are going to stay in the home for a long period of time. Moving into a home and selling it in a short amount of time could result in a loss of money in the long run.
Former servicemembers should also get pre-approved for a VA loan so they don't look at a home that is too expensive for their loan to cover.