Realtor - Amanda S. Davidson: Buying A Home In Kingstowne | What You Need To Know About Financing

Buying A Home In Kingstowne | What You Need To Know About Financing

Buying A Home In Kingstowne | What You Need To Know About Financing

Buying a home, whether it’s your first or your fifth comes with a lot of “I didn’t know that.” Real estate is constantly changing and there are always going to be questions from choosing the right home to determining what loan is best for you. Lending is a big part of real estate and it’s also always changing. Below is what you’ll need to know about mortgages and how they relate to buying a home in Kingstowne.

Buying A Home In Kingstowne 

What’s The First Step To Buying A Home In Kingstowne?

Kingstowne, like many other areas of Northern Virginia, and the United States for that matter is experiencing low inventory. When supply isn’t keeping up with demand competition comes into play and makes getting a pre-approval for a home loan more important than ever. It’s always important but, when inventory is low it’s a downright must. Being a pre-approved buyer not only signals to sellers you’re serious, it also gives them confidence you can actually buy their house. If you’re considering buying a home starting with getting pre-approved is your first step. Consult with your agent for recommendations and team up with a lender who you not only trust but, one that can close your loan promptly after you go under contract on a home.

 

How Much Can I Afford?

This is a question I get a lot and there are multiple factors that are considered in order to determine affordability. It’s not one I can answer as a real estate agent and always reaffirms why talking to a lender is the first step in home buying. Debt to income ratio, credit score, and credit utilization all factor into a pre-approval. Not all lenders are created equal and you need to work with one that reviews your credit and your finances, not only to determine how much you can afford but, also to determine if there is anything that needs improvement before you buy.

Buying A Home In Kingstowne 

Are Interest Rates Rising?
Yes, interest rates have risen this year but, buyers are still buying because historically rates are still low. Buying now means locking in an interest rate that is very likely lower than it will be in the future. If rates keep rising (they’re predicted to do so) and you wait to buy it will impact your overall buying power. According to NerdWallet’s 2018 Home Buyer Report millennials make up the largest share of current first time home buyers and 82% state buying a home is a priority. 

 

Do I have To Have Perfect Credit?

This is another question I get a lot and while perfect credit can be a subjective term we always tell our clients you certainly don’t need an 800 credit score to buy a home. In general, the minimum score lenders look for is a 620. There are some that can and will go lower than that. An average credit score is in the mid 600’s. If your credit score is 740+ you’re considered to have an extremely strong credit score. When obtaining a mortgage the higher your credit score the better your rate will be but, that’s not to say you can’t get a mortgage without perfect credit, you absolutely can.

Buying A Home In Kingstowne 

Do I Need To Put 20% Down?
It’s a common misconception that you need to put 20% down to purchase a home. It’s absolutely a myth that you need to put 20% down, right now the average in the nation is 10% down. There are programs that offer 3% and 5% down as well. There are cases where if for example, you’re in a multiple offer situation where 20% down could make your offer stand out more but, that’s going to be case by case and shouldn’t deter you from wanting to buy. There are plenty of ways to make your offer stand out if you have competition that doesn’t include a higher down payment.

 

How Long Does It Take For A Loan To Close?

The closing timeframe will vary by lenders and even states. In the Kingstowne area, an average closing time is 30 days. We work with a handful of preferred lenders and all can close in as quickly as 2 weeks if needed. This can set our buyers apart if they’re in a competing situation. That said, often times if a home is still occupied the sellers need a few weeks to move out. Working with a loan officer that gives you the flexibility to close on the seller’s timeframe is important in the current market conditions because sellers are in the driver’s seat. In the Kingstowne area, it’s not advisable to work with a lender that needs more than 30 days to close your loan.

 

Buying A Home In Kingstowne

 

Are you looking for help with your Kingstowne real estate needs? Contact me at 703-431-3755 or amanda@amandadavidson.com. Whether its questions about buying a home or looking for a recommendation for a local lender I’m always glad to assist.

 

 

Amanda Davidson Real Estate Group

 

 

      

 

Amanda Davidson

Amanda Davidson Real Estate Group

Broker - Owner
Licensed in VA and DC

6485 Old Beulah Street
Alexandria, VA 22315

Cell: 703.431.3755
Fax: 703.562.7057




Comment balloon 18 commentsAmanda S. Davidson • August 16 2018 09:20PM

Comments

Good morning, Amanda... a terrific post "walking" prospective buyers through the steps of getting financing to buy a home.

Posted by Nina Hollander, Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor (Coldwell Banker Residential Brokerage | Charlotte, NC) 3 months ago

The rules are ever changing...great to have a list that's up to date and like good scouts will be prepared !

Posted by Sally K. & David L. Hanson, WI Realtors - Luxury - Divorce (EXP Realty 414-525-0563) 3 months ago

Anyone considering a purchase of Kingstowne home should give you a call, Amanda.

Posted by Gabe Sanders, Stuart Florida Real Estate (Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales) 3 months ago

YOu are one wise lady!  Great post and have a wonderful week!

Posted by Kristin Johnston - REALTOR®, Giving Back With Each Home Sold! (RE/MAX Realty Center ) 3 months ago

Buyers are always in good hands when they entrust you with helping them find a home, you know the process and know what is best for them!

Posted by Brian England, MBA, GRI, REALTOR® Real Estate in East Valley AZ (Arizona Focus Realty) 3 months ago

Good morning Amanda - you have covered all of the important points to know about financing a home is Kingstowne.  Buyers and sellers should contact you!

Posted by Grant Schneider, Your Coach Helping You Create Successful Outcomes (Performance Development Strategies) 3 months ago

Amanda, You are always a pro with your blogs and people would be wise to talk to you!!!

Posted by Will Hamm, "Where There's a Will, There's a Way!" (Hamm Homes) 3 months ago

Amanda, this is a great post explaining the lending process to buyers. I recently learned that you have a background in finance so you bring a lot of knowledge and value to your clients.

Posted by Pat Starnes-Front Gate Realty, 601-991-2900 Office; 601-278-4513 Cell (Front Gate Real Estate) 3 months ago

HI Amanda S. Davidson - You have covered a lot of information that will really help 1st time buyers.  With multiple offer situations,  I also look at VA and FHA loans with some concern only because those loans require more contingencies to protect the buyer so that they have less of a chance of defaulting.

Posted by Sheri Sperry - MCNE®, (928) 274-7355 ~ YOUR Solutions REALTOR® (Coldwell Banker Residential Brokerage) 3 months ago

Prospective home buyers will be in very good hands when they use your professional real estate services.

Posted by Roy Kelley, Roy and Dolores Kelley Photographs (Realty Group Referrals) 3 months ago

This is such an informative blog post Amanda. All important information to attract the attention of buyers!

Posted by Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400, Long Island Condo & Home Sale Specialists (The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803) 3 months ago

Amanda, great post, as those buyers contemplating a purchase in Kingstowne need to get pre-approved first.

Posted by Joan Cox, Denver Real Estate - Selling One Home at a Time (Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373) 3 months ago

Amanda love the step by step, now number one should be reach out to you and the other points you will help them walk through as needed, Endre

Posted by Endre Barath, Jr., Realtor - Los Angeles Home Sales 310.486.1002 (Berkshire Hathaway HomeServices) 3 months ago

Anyone thnking of buying a home in your area should call you to be their agent.

Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) 3 months ago

Thank you all very much for your kind feedback. I really appreciate it! 

Posted by Amanda S. Davidson, Alexandria Virginia Homes For Sale (Amanda Davidson Real Estate Group) 3 months ago

Amanda, buyers need to contact you for your preferred lenders, to be sure they get to the closing table.

Posted by Joan Cox, Denver Real Estate - Selling One Home at a Time (Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373) 3 months ago

Good morning Amanda S. Davidson,

Excellent post with step by step process for buyers contemplating a purchase in Kingstowne. You are the agent to call for guidance! 

Posted by Dorie Dillard CRS GRI ABR, Serving Buyers & Sellers in NW Austin Real Estate (Coldwell Banker United Realtors® ~ 512.346.1799) 3 months ago

Hi Amanda

You have covered the financing topic ad all the important issues buyers should understand beautifully!! Buyers in the Kingstowne area can certainly count on your for the right guidance in their home purchases.

Jeff

Posted by Jeff Dowler, CRS, The Southern California Relocation Dude (Solutions Real Estate ) 3 months ago

Participate