Moving to Richmond & Buying a House

Are you moving to Richmond soon and want to buy a house instead of rent? Here’s what you need to know!

1. You don’t need a perfect credit score

You do not need a perfect credit score to buy a house in Richmond. While a higher credit score can make it easier to qualify for a mortgage and secure more favorable terms, it’s not the only factor lenders consider. Different lenders have different criteria, and the minimum credit score requirements can vary.

Generally, a credit score of 620 or higher is considered acceptable for many conventional mortgage loans, but some government-backed loans, such as FHA loans, may have lower minimum requirements.  In some instances, a 580 credit score or higher is acceptable. Keep in mind, a higher credit score can help you qualify for lower interest rates, which can save you money over the life of the loan.

In addition to credit score, lenders also consider factors such as your income, employment history, debt-to-income ratio, and the amount of the down payment you can make. It’s essential to review your credit report, address any issues, and work on improving your credit score before applying for a mortgage to increase your chances of getting approved and securing better terms.

Need to check your credit score? CLICK HERE

Pro tip: If you’re moving to Richmond & buying a house- local lenders are often preferred!

2. You don’t need to make a 20% down payment

You do not need to put down 20% to buy a house here. People think you need to put down a 20% down payment because when you do so, it helps you avoid private mortgage insurance (PMI), which is insurance added to your monthly mortgage payment until you pay down 20% of your loan. 

That being said, it is very common to not put down 20%. Many lenders offer mortgage programs with lower down payment requirements.

Here are some common down payment options:

• 3% Down Payment: Some conventional loans and loan programs, such as Fannie Mae’s HomeReady and Freddie Mac’s Home Possible, allow for a down payment as low as 3%.
• 3.5% Down Payment: FHA loans, which are backed by the Federal Housing Administration, typically require a minimum down payment of 3.5%.
• 0% to 5% Down Payment: VA loans, guaranteed by the Department of Veterans Affairs, offer eligible veterans and active-duty military personnel the option to purchase a home with little to no down payment.
• 0% to 5% Down Payment: USDA loans, backed by the U.S. Department of Agriculture, provide financing for eligible rural and suburban homebuyers with little to no down payment.

It’s important to note that while a smaller down payment can make homeownership more accessible to you, it may result in higher monthly mortgage payments and potentially additional costs like PMI.

3. Not all realtors are the same!

While all real estate agents are licensed to help people buy or sell real estate, there can be significant differences among them in terms of experience, personality, expertise, work style, and the level of service they provide. When moving to Richmond and buying a house, consider these factors when selecting a realtor:

• Experience: Realtors vary in terms of their experience in the real estate industry. Some may do 1 transaction a year while another does 20 a year. Obviously, the more transactions, the more knowledge you have.
• Specialization: Some realtors specialize in certain types of properties (e.g., residential, commercial, luxury homes) or specific neighborhoods. Choosing a realtor with expertise in the type of property you are interested in can be beneficial.
• Market Knowledge: The local real estate market can be diverse, and a good realtor should have a strong understanding of the current market conditions, trends, and property values in the area where you want to buy or sell.
• Negotiation Skills: Realtors with strong negotiation skills can be valuable in helping you get the best deal, whether you are buying or selling a property.
• Personality: Each realtor has their own personality and you want to work with the one that matches you the best. This will allow for smoother communication and a more seamless transaction. You want to like who you work with!

4. Not all home inspections are included

When buying a home, it’s essential to have a thorough inspection to identify any potential issues or concerns. But did you know there is more than 1 type of inspection? Do you know which you should order for your potential new house? The specific inspections you should consider can vary based on factors like the property’s age, location, and overall condition. Here are some common home inspections to consider when buying a house in Richmond specifically:

• General Home Inspection: This is a comprehensive inspection covering the major systems and components of the home, including the foundation, roof, plumbing, electrical, heating, and cooling systems. A general home inspection provides an overall assessment of the property’s condition.
• Termite or Pest Inspection: This inspection checks for the presence of termites or other wood-destroying insects. It’s crucial, especially in areas where these pests are common.
• Radon Testing: Radon is a naturally occurring radioactive gas that can seep into homes and pose health risks. Radon testing measures the levels of radon gas in the home.
• Lead-Based Paint Inspection: Homes built before 1978 may have lead-based paint. A lead-based paint inspection checks for the presence of lead paint and provides information on its condition.
• Septic System Inspection: If the property has a septic system, a specialized inspection can assess its condition and functionality.
• Well Water Testing: If the property has a well, testing the well water for contaminants is important to ensure it meets health and safety standards.

Here in Richmond VA, the most commonly ordered home inspections are general, termite and radon. Certain areas of the Richmond metro have higher than normal radon levels so this is often a good ad on for us. 

It’s important to work with a qualified and experienced home inspector and realtor who can guide you on which inspections are most relevant for the specific property you’re interested in. The results of these inspections can help you make informed decisions and negotiate repairs or adjustments to the sale contract if needed.

YOUR CONCLUSION?

Moving to Richmond and buying a house won’t be the same process as buying a home somewhere else. Be sure to select the best realtor and lender duo and the rest will fall in to place!

Need a realtor recommendation? Check out BRIANNA WALKER REALTY. Brianna was once a transplant just like you!