How to Buy a House in Virginia: A Homebuyer’s Guide
Updated: March 31, 2023
Advertising & Editorial Disclosure
The average home value in Virginia is currently $383,383, up roughly 10.1% over the previous year. Virginia's rates are higher when compared to the average American home, which is valued at $357,589.
You might find it easier to finish the application, close the purchase and avoid going into significant debt if you have a good understanding of the homebuying process. This guide presents the most important information for Virginia homebuyers.
Although pricing is a crucial component to take into account when purchasing a property, you also need to consider other aspects like the mortgage terms and location.
Choose an Ideal Location
One of the primary considerations homebuyers typically take into account when making a purchase is location. The price of your home and mortgage greatly depends on where you decide to live.
You might also want to evaluate your priorities and the resources you need to access. The neighborhood's culture, cost of living, accessibility to particular amenities and range of recreational opportunities typically vary and can impact how ideal a home is for you.
Calculate Mortgage Rates
Your mortgage rates are greatly influenced by a number of variables, including the lender, your credit score, your income, interest rates as well as the type, terms and size of the loan.
In order to select the best mortgage rate for you, which will depend on your financial condition and unique circumstances, it is necessary to evaluate these factors.
Prepare Down Payment Requirements
Normally, a down payment is required before you can buy a house. The specific amount is determined by the type of loan you have.
The sum of the down payment can have an impact on the total cost of your loan because it may make you appear less risky to the lender. Plus, the more you pay upfront, the less you'll have to pay each month.
Get Pre-Approved for a Mortgage
Obtaining a mortgage pre-approval is the next step after selecting a lender. This step is essential because, with pre-approval, you can talk to the lender about their policies and your budget.
Pre-approval differs from prequalification. Your lender just offers an estimated loan amount when you prequalify. Prequalification does not involve a hard credit check, but a pre-approval often does.
Conduct a Home Inspection
A house inspection must be completed before buying a home. A thorough inspection will identify any material faults in the home and help you steer clear of potentially deadly safety risks.
Home inspections can give the buyer a bargaining position if the house requires repairs or other renovations. Additionally, a professional home inspection may be required before some lenders will finance your home.
Close Your Mortgage Loan
After reviewing the lending policies thoroughly, you can finalize your mortgage loan. There are closing costs to consider when purchasing a property.
Your payments to the lender for the credit report, the appraisal and the document preparation process are included in the closing expenses. You might also have to pay third parties for things like pest inspections, legal services and home appraisals.
Virginia Homebuying Details
Virginia homebuyers should remember to research their new home’s location, evaluate different mortgage types and shop around for a lender that fits their needs. Although these are general steps to follow throughout a homebuying journey, there may be processes unique to Virginia. Feel free to contact your lender or a real estate professional so you can prepare for Virginia’s homebuying steps.
Additionally, Virginia residents can seek homeowner assistance programs to help them buy the home of their dreams.
Virginia Housing Plus Second Mortgage
The Virginia Housing Plus Second Mortgage combines a first mortgage from Virginia Housing that qualifies with a second mortgage from Virginia Housing to fund the down payment. The closing costs will be covered in full or in part for those borrowers with specific credit qualifications. There is no prepayment penalty on this 30-year, fixed-rate loan and if you meet the requirements, you may also be eligible for a Mortgage Credit Certificate (MCC).
Mortgage Credit Certificates
First-time homebuyers can earn a dollar-for-dollar credit for the federal income tax burden with a Mortgage Credit Certificate (MCC). As long as you continue to reside in the property, this can lessen your yearly financial expenses.
Closing Cost Assistance Grant
This subsidy helps with the upfront costs associated with purchasing a home. It lowers out-of-pocket costs and can be combined with a Mortgage Credit Certificate by homebuyers to lower the cost of homeownership.
Frequently Asked Questions About Buying a Home in Virginia
You can use the information offered by MoneyGeek to guide you through the Virginia homebuying process by reading the answers to these frequently asked questions.
Before buying a home in Virginia, you should ask yourself a number of things, such as:
- Given your requirements and financial situation, where is the best place for you to buy a home in Virginia?
- Which mortgage program and interest rates are you qualified for?
- How much can you afford to put down?
Demand is strong and prices are higher because there are too few homes and too many buyers, which is why Virginia's median home value is greater than the national average. Although it largely depends on the city you want to live in, the average cost of living in the state is likewise greater than the national average. However, Virginia is a state noted for being a great place to live, so getting a home there still has its fair share of perks.
With an increase in the past year, property values in the area have been rising substantially in recent years. As a result of the ongoing increase in demand, your property value is probably going to increase over time. However, the housing market can change at any point, so keep that in mind before buying a home in the state.
To buy a property in Virginia, you will need a specific amount of cash, depending on the type of mortgage you are eligible for. Mortgage lenders often demand clients put 20% down to avoid private mortgage insurance. You will also need to meet certain income requirements to prove you can afford the monthly payment on your home.
The property tax rate in Virginia varies by county. Do your research about tax rates in your preferred location before purchasing a home.
Martinsville is one of the most affordable places to buy a house in Virginia.