How to Buy a House in Virginia in 2024: Insider Tricks Unveiled! (2024)

10 Steps to Buying a House in Virginia

We have simplified the process of buying a house in Virginia in 10 simple steps. Here’s how you can do it:

Step 1: Check Your Financial Health

You need to assess your financial health before making a home purchase in Virginia. Here’s what you need to do:

• Check Your Credit Score:The credit worthiness of you as a borrower is determined by yourcredit score. A good score can fetch you lower interest rates. You can get a free credit report from Equifax, Experian, or TransUnion.
• Find Your DTI Score:Virginia mortgage lendersuse the DTI score to determine your eligible mortgage amount. Typically, a DTI of 36% or lower is ideal. To find yourDTI ratio, divide your monthly debts by your gross monthly income.
• Calculate How Much House You Can Afford:Before requesting for pre-approvals, you should estimate the costs of home ownership. And how much you can afford. Home affordability calculators consider your income, debts, expenses, and help you get an estimate ofmonthly mortgage payments.

Step 2: Plan Your Down Payment and Closing Costs

A 20% down payment is typically the norm, but you can choose your own amount. The average down payment on a house depends on the type of mortgage you opt for.

Virginia buyer closing costs may come as a shock for first-time buyers. Like a down payment, closing costs are out-of-pocket expenses you pay to finance, buy, and own a house. Budget 2% to 5% of the total purchase price for closing costs.

» How Much Down Payment for a House: Discover the ideal down payment amount to make an informed purchasing decision.

Most importantly, if you are looking to buy a house with cash, YOU CAN SKIP TO STEP 5.

Step 3: Find the Right Mortgage for You

When embarking on the journey of homeownership in Virginia, you need to know the types of home loans and which one’s the best for you:

• Conventional Mortgages: A conventional mortgage is a loan not backed by a government agency. You can get a conventional loan from private mortgage lenders.
• FHA Loans: The Federal Housing Administration grants FHA loans to borrowers having lower credit scores and higher DTI ratios. Remember, low credit scores = higher interest rates.
• VA Loans: The US Department of Veterans Affairs offers VA loans to veterans. With no down payment and lenient credit requirements, you can even get a VA loan with bad credit.
• USDA Loans: Low to moderate-income home buyers in rural areas can apply for USDA loans. They offer zero down payment loans, but you need to cover the USDA closing costs of 2% to 6%.

Your lender may require you to purchase private mortgage insurance if you put down less money upfront. This is asked for loans with less than 20% downpayment.

Step 4: Get Mortgage Preapproval Letter

A mortgage pre-approval helps you to:

• Understand Your Budget: A preapproval letter gives you a clear idea of how much you can afford to spend on a home in Virginia. It takes into account your income, assets, debts, and credit score.
• Stand Out to Sellers: Buyers holding preapproval letters are often given preference by sellers. It shows that you’re serious and financially prepared to make the purchase.
• Accelerate the Process: With a preapproval letter in hand, you can expedite the mortgage application process when you find the perfect home. This can help you move quickly in this competitive housing market.

» Documents Needed For Mortgage Pre Approval: Gather the necessary documents to streamline your application process.

Step 5: Start Your Home Search

FSBO listing sites like Houzeo, Redfin, and Zillow allow you to make offers online. You can also schedule in-person showings online using Houzeo Showings.

Here are a few things you should keep in mind while shopping for homes in Virginia:

• See Homes In-person: To truly understand a home and its neighborhood, visit it in person after checking it online.
• Keep Your Schedule Open: Ensure you have free time to see the newly listed properties.
• Attend Open Houses: Explore the neighborhood of your interest. Attend open houses of listings that catch your interest.

💡 Pro Tip: Search Properties Without a Realtor in Virginia!

On Houzeo, you can start your home search without a Realtor in Virginia. You can sort homes by its location, mark favorites, and request showings online, in just a few clicks!

⏩ How to Buy a House Without a Realtor: Read our blog to know more.