Buying a Home While Deployed: Tips for Active Duty Service Members
Buying a home is a significant milestone, but for active-duty service members, the process can be more complicated when you’re deployed. Deployment adds layers of logistical challenges, from dealing with time zone differences to finding someone to handle the details in your absence. However, with the right approach, you can still successfully purchase a home while serving overseas or in a different state. This guide will provide actionable tips and resources to help make home buying while deployed as smooth as possible.
Using a Power of Attorney (POA) for Legal Transactions
When you’re deployed, being present for home-buying activities like signing contracts or finalizing mortgage paperwork may be impossible. A Power of Attorney (POA) allows a trusted person to act on your behalf for specific transactions.
Types of POAs:
- General Power of Attorney: Grants broad powers to handle a wide range of financial and legal matters.
- Special or Limited Power of Attorney: Grants specific authority, such as the ability to sign real estate documents.
When buying a home, a Special POA is recommended as it limits your representative’s powers only to real estate transactions. Your lender will often require specific language in the POA to approve it for use in a mortgage transaction. You’ll want to ensure that your POA documents are in order before deployment to avoid any delays during the process.
Key Tip: Make sure the person you appoint as your agent is someone you trust completely, such as a spouse, family member, or close friend, as they will be making critical decisions on your behalf.
Coordinating with a Trusted Realtor or Family Member
Buying a home while deployed often means you won’t be able to physically view properties, attend open houses, or negotiate in person. This is where having a trusted realtor or family member becomes invaluable.
- Military-Friendly Realtors: Many real estate agents specialize in working with military families and are familiar with the unique challenges posed by deployments and PCS moves. Find a realtor who is not only knowledgeable about VA loans but also understands how to work around your deployment schedule.
- Family Support: If you have family members in the area where you’re buying, they can help by attending inspections, walkthroughs, and meetings in your place. Having a “boots on the ground” advocate ensures that you stay connected to the process, even if you’re miles away.
Virtual Tours: Modern technology offers ways to see homes without being there in person. Many realtors provide virtual home tours through video calls, and some even offer 3D walkthroughs of homes online. This helps you get a sense of the property remotely before making a final decision.
Leveraging Technology for Virtual Tours and Closings
Thanks to advances in technology, the home-buying process can be completed almost entirely online, even when you’re deployed. From virtual showings to digital paperwork, many aspects of real estate transactions can be managed remotely.
Virtual Tools You Can Use:
- Virtual Home Tours: Whether through pre-recorded videos or live video calls, virtual tours allow you to “walk” through homes from wherever you are.
- E-signatures: Services like DocuSign allow you to review and sign contracts electronically, saving time and making it easier to manage paperwork from overseas.
- Online Mortgage Applications: Many lenders have user-friendly online portals where you can apply for a mortgage, track your application status, and submit required documents.
Remote Closings: In many cases, the home closing process can also be done remotely. Your POA agent can sign on your behalf, and many states and lenders now accept remote online notarizations, allowing you to finalize your purchase digitally.
How Deployment Affects Financing and Timing
Deployments often come with unpredictable schedules and quick changes, which can complicate financing and the timing of your home purchase. Fortunately, VA loans are designed to accommodate the needs of military families and offer flexibility that can help during deployment.
- VA Loan Flexibility: VA loans typically require that you occupy the home as your primary residence within 60 days of closing. However, if you’re deployed, the VA may grant an extension. A spouse or dependent can also fulfill the occupancy requirement on your behalf, allowing you to secure the home even while overseas.
- Locking in Mortgage Rates: If you’re concerned about fluctuating interest rates, many lenders allow you to lock in your rate for a certain period, ensuring that you won’t miss out on a good rate if your deployment causes delays.
- Dealing with Delays: It’s common for home-buying timelines to shift, especially when the service member is deployed. Keep open lines of communication with your realtor, lender, and POA agent to manage expectations and adjust the timeline as needed.
Preparing for Post-Deployment Housing Needs
When you’re purchasing a home while deployed, it’s essential to think about your post-deployment needs. Will this home fit your family’s lifestyle and future requirements once you return? Here are a few factors to consider:
- Location: Is the home in a location that’s convenient for your family’s needs? Consider schools, commuting times, and proximity to base or work locations.
- Resale Value: Military families often have to move frequently due to PCS orders, so consider the home’s resale potential. Homes in military-friendly areas or close to major cities tend to hold their value better, which can make future moves less stressful.
- Renting Out Your Home: If there’s a chance you’ll need to move again, think about the home’s potential as a rental property. If it’s in a good location with strong demand, renting it out while you’re away could provide a steady income stream.
Conclusion While buying a home during deployment comes with added complexities, it’s entirely possible with the right preparation and support. By using a Power of Attorney, working with a trusted realtor, leveraging virtual tools, and understanding the flexibility offered by VA loans, you can successfully navigate the home-buying process from anywhere in the world.
Remember, timing and communication are crucial. Start early, stay organized, and rely on your support network to help carry out the steps you can’t handle in person. With the right strategy, you can achieve homeownership, even while serving your country abroad.
