There's never been a better time for buying a Virginia Beach home than right now. Mortgage rates hit a new record low almost on a weekly basis of late, and home prices may have already bottomed and be starting on their way back up. Waiting much longer could mean higher Virginia Beach home prices, and interest rates could stop dropping and head back in the northerly direction.
Use Caution When Buying a Virginia Beach Home
If your current employment is in jeopardy, be cautious about signing on the dotted line for a mortgage. Once you sign, you're responsible, no matter what happens. If you buy a home and commit to a mortgage, then lose your job, that's how people end up in short sales or foreclosures.
Before starting to look for a Virginia Beach home, be realistic and patient about what's available. Inventory of homes is down, and finding that perfect home to fit your needs may take some time.
Also before you begin your home search, use an online calculator to determine your price range for purchasing a house. The debt to income calculator will take your current income and your debts and then calculate the payment that you can afford. You will then have an idea of what price you can afford to pay for a home so you don't waste your time looking at homes you cannot afford.
Before choosing a neighborhood to settle down in, check the national data base for sex offenders living in the area you're considering. All states provide public sex offender information, but that doesn't mean that a seller or even a real estate agent is going to tell you if an offender lives in the neighborhood. Research it yourself for peace of mind.
When making an offer on the Virginia Beach home you're interested in, ask the seller about any financial incentives they may be willing to offer, like helping with closing costs. Some sellers may not want to give you a price break on the home if you ask for financial perks, so don't be greedy. If you need help with the closing costs or down payment, don't try to low-ball your offer price.
Buying a Virginia Beach home can be a daunting experience, but if you do your research and use some common sense, you'll find the right home at the right price.
Buy a VA Beach Home Versus Renting One
It's cheaper to buy a VA Beach home than renting it. This stat holds true in most U.S. housing markets, according to the real estate site Trulia.
The reasons: VA Beach home prices are still falling and mortgage rates have remained at or near historic lows for months – while rents are on the rise.
Trulia looked at asking prices for rentals and homes for sale, while also factoring other costs such as taxes, insurance and maintenance.
Buying a VA Beach home is much more affordable compared to renting in some areas with low vacancy rates where rents have increased in recent years.
Your income, savings, and monthly expenses play an important role in determining how large a mortgage you can afford.
In many cases, the amount of money a renter spends on rent can be about the same as or less than the amount a homeowner spends on a mortgage. With the tax benefit for homeowners, the savings can be significant.
Monthly Expenses When You Buy a VA Beach Home
Your rental company takes part of your rent payment to cover certain housing expenses. When you decide to buy a VA Beach home, you accept responsibility for paying for these expenses (listed below). They are additional costs to your monthly mortgage payment and should be included in your budget estimates:
- Property Taxes and Special Assessments
- Home/Hazard Insurance
- Utilities
- Maintenance
- Home Owner Association (HOA) Fee: Doesn't apply to all purchases. It pays for trash and snow removal and maintenance of common grounds if applicable.
- Membership Fee: It may pay for recreational facilities and other services (cable TV).
Although there are many things to consider when deciding which is cheaper for you, to buy a VA Beach home, or to rent one, we hope this article has helped you in the planning stages.
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