Last updated: September 2025
Quick Answer
Common VA loan pitfalls include skipping benefits, delaying preapproval, skipping home inspections, underestimating closing costs, and overlooking resale value.
Avoiding these issues can help you buy smarter, faster, and with fewer surprises.
5 VA Loan Mistakes (And How to Avoid Them in 2025)
The VA loan is one of the most powerful tools available to veterans and active-duty service members. It offers $0 down, no mortgage insurance, and competitive interest rates. But even with these benefits, the homebuying process can be overwhelming, especially if you’re a first-time buyer.
Avoiding a few common missteps can make a big difference in your buying experience and long-term financial success.
1. Skipping your VA loan benefit altogether
Many eligible veterans don’t use their VA loan, either because they think it’s too complicated, assume they won’t qualify, or get bad advice.
In 2025, the VA loan is one of the most affordable mortgage options available.
Key advantages you could miss:
- $0 down payment
- Flexible credit requirements
- No monthly mortgage insurance
- Low fixed interest rates
- Reusable benefit with full or partial entitlement
Unless you’re planning to use a cash purchase or have another benefit that outweighs VA’s terms, skipping the VA loan can lead to higher upfront costs and long-term expenses.
What to do instead:
- Request your Certificate of Eligibility (COE)
- Compare VA loan terms to conventional and FHA options
- Work with a VA-savvy lender to fully understand your entitlement
2. Delaying preapproval
Some buyers start house hunting before they know what they can afford or qualify for. Without a verified VA preapproval, your offer won’t stand out and may not be considered by sellers.
Why preapproval matters in 2025:
- It confirms your loan amount and buying power
- It helps you compete in a hot market with multiple offers
- It identifies credit or income issues before you fall in love with a home
- It speeds up closing once your offer is accepted
Prequalification is just a rough estimate based on unverified data. Preapproval is a lender-reviewed commitment based on your income, credit, assets, and COE.
What to do instead:
- Get preapproved before touring homes
- Submit your financial documents early (W-2s, LES, bank statements)
- Choose a lender who understands the VA loan process in depth
3. Skipping the home inspection
Many first-time buyers assume the VA appraisal is enough to verify a home’s condition. But the appraisal is not the same as a home inspection.
VA appraisal vs. inspection:
| Feature | VA Appraisal | Home Inspection |
|---|---|---|
| Required for loan? | Yes | No |
| Purpose | Verify value and MPR compliance | Identify hidden problems |
| Ordered by | Lender | Buyer |
| Evaluates | Safety, sanitation, livability | Systems, structure, and defects |
Even if the home appears great on the surface, an inspection can reveal issues with the roof, HVAC system, foundation, or plumbing that may impact your decision. Or, give you leverage to negotiate repairs.
What to do instead:
- Always hire a professional home inspector
- Budget $400–$600 for the service
- Review the report before your appraisal or closing
- Use the findings to negotiate repairs or credits
4. Underestimating closing costs
VA loans eliminate the down payment, but not all costs. Many first-time buyers assume “$0 down” means “$0 out of pocket,” which can lead to sticker shock at closing.
Common VA loan closing costs:
- VA funding fee (0.5%–3.3%, unless exempt)
- Appraisal fee ($500–$800)
- Title insurance and escrow fees
- Recording and transfer taxes
- Homeowners insurance and property taxes (prepaid)
- Home inspection (optional but recommended)
While VA allows the seller to cover up to 4% of the loan amount in concessions, not all sellers agree to do so, especially in competitive markets.
What to do instead:
- Ask your lender for a Loan Estimate early
- Set aside 3–5% of the home price for closing
- Explore lender credits or negotiate with sellers for cost coverage
- Verify if your VA funding fee is waived due to your disability status
5. Overlooking future resale value
Buying a home is both an emotional and financial decision—but some buyers focus solely on what meets their needs today and overlook its future marketability.
Choosing a home with poor resale potential could lead to:
- Difficulty selling if you need to relocate
- Low appraised value later
- Poor return on investment
Common resale pitfalls:
- Homes with limited bedroom or bathroom count
- Properties in declining school zones or flood zones
- Over-customized homes
- Homes with unpermitted renovations
What to do instead:
- Consider neighborhood growth, school ratings, and commute times
- Think ahead: Is this a starter home, long-term home, or rental opportunity?
- Talk to your agent about historical price trends and projected equity gains
FAQ: Pitfalls to avoid with a VA loan
Yes. While the VA appraisal is required, it doesn’t replace a home inspection. A thorough inspection provides detailed insight into the property’s condition.
Yes. The VA loan is reusable as long as you have remaining entitlement or restore it after selling or repaying a previous VA-financed home.
Preapproval requires a credit check, income verification, asset review, and confirmation of your Certificate of Eligibility (COE).
Not usually. While there are closing costs, VA loans don’t require mortgage insurance, and some costs can be covered by seller concessions or rolled into the loan.
VA loans allow for single-family homes, condos, and 2–4 unit multifamily properties—but the home must meet VA minimum property requirements (MPRs) and be your primary residence.
Use your VA loan benefit wisely
Avoiding these common VA loan pitfalls can mean the difference between a smooth homebuying journey and one full of avoidable stress.
As a veteran or service member, you've earned the right to buy with $0 down and no PMI, but how you prepare and plan makes all the difference.
Work with VA-focused professionals, stay financially prepared, and always ask questions when something isn’t clear.
We’ve helped hundreds of veterans make smart buying decisions. Let’s talk through your VA loan game plan.
