Info Richmond Homebuyers Need to Know
To fully immerse yourself into the Richmond buying process, Richmond homebuyers must feel confident. In order to be confident, Richmond homebuyers need to be educated.
As you find yourself preparing to go through the home buying process, here are some things that Richmond homebuyers will want to be on top of.
What is your actual budget?
For most Richmond homebuyers, a mortgage is necessary when buying a home. And in order to qualify for a mortgage, Richmond homebuyers need to have a down payment ready.
This process then begs the question: what does your budget actually allow for?
The size of the budget will vary between Richmond homebuyers, but as a general rule, it is recommended that your house payments (mortgage, maintenance, taxes) not exceed 28% of your gross monthly income.
For example, if your monthly (before-tax) income is $5,500, multiply that by 0.28 and you’ll see that you shouldn’t pay more than $1,540 a month on your Richmond home.
While an online calculator can help you find this number, Richmond homebuyers need to keep in mind that this number is only a ballpark figure. In order to really understand what your budget is, Richmond homebuyers should meet with a lender to review their finances and secure mortgage pre-approval.
It is during this process that your lender will review your credit history and other factors. This information will dictate if you qualify for a loan as well as how much of a loan you qualify for.
Pre-approved Richmond homebuyers can separate themselves from other buyers, as the sellers can rest easier knowing you have access to the cash made in your offer.
There is No“Perfect” Richmond Home
Richmond homebuyers who have been considering making the leap for a while have probably been thinking about what this new home should look and feel like. There will be settling for anything less than perfect.
A word to the wise: there is no “perfect” Richmond home. The sooner you can get the idea “perfect” out of your head, the happier you will be.
When it comes to a new home, most Richmond homebuyers prioritize three main factors: price, size, and location. Realistically though, Richmond homebuyers should expect to achieve only two of those three things.
For example, you may get a great deal on a big house, but it might not be in the best neighborhood. Or you may find a great house in a great neighborhood, but the price is beyond your budget.
Richmond homebuyers will be well served to understand that compromises are part of the home buying process.
Doing Due Diligence
We get it. You have found the Richmond house you wanted and are ready to move in immediately. But first, take a breathe.
Richmond homebuyers will want to take the time to perform all of the necessary due diligence prior to signing any paperwork. This is also the time to review any contingencies you are considering adding to the contract.
Contingencies allow you the legal flexibility back out of the deal if something goes wrong.
The most common contract contingencies are: a home inspection, which allows you to request a resolution for issues found by a professional (think: leaky roof); a financing contingency gives you the right to back out if you are not approved for your loan; and an appraisal contingency, which lets you void the contract if your lender values the home at less than what you offered.
Richmond homebuyers do not want to regret making the wrong decision. To avoid this scenario, make the effort to educate yourself as much as possible on your own specific financial situation as well as the local Richmond market.