- 1). Assess your current income and expenses. If you are moving to Virginia from a state in the Mid-West or South, expect housing costs to be greater than you currently pay. A three bedroom house in Oklahoma usually costs less than a comparable house in Virginia.
- 2). Obtain an appraisal for the property that you want to purchase. Most lenders will not approve a mortgage that exceeds the appraisal value. The Virginia Real Estate Appraisal Board allows you to search online to ensure that the appraiser you hired is licensed.
- 3). Contact lenders (with local, regional, or national operations) that provide mortgages in Virginia. Consider applying through lendingtree.com to compare offers from multiple lenders. The U.S. Department of Housing and Urban Development (HUD) is another source that maintains two offices for Virginians in Richmond and Washington D.C. (Fairfax, Loudoun, Prince William, Montgomery, and Prince William Counties). You can call HUD toll free at 1(800) 955-2232.
- 4). Evaluate the mortgage terms, including the interest rate and calculation method. For example, a 30-year fixed mortgage at five percent will not cost the same as a 15-year fixed mortgage at six percent. Instead of frantically reviewing the terms at the closing, request a copy of the mortgage at least a few days in advance so that you can analyze the contract.
- 5). Determine closing costs, which might be paid by you, the seller, or a third party. There are many HUD-approved counseling agencies in Virginia that you can work directly with and ask specific questions or participate in a home buyer program. You also can consult with a real estate attorney or an accountant about legal and tax concerns.
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