If you're currently renting in Northern VA, chances are you're thinking of owning a place of your own someday. In fact, you may already be actively searching for the perfect property to purchase. But aside from actually finding your perfect property, there are several other important considerations to keep in mind when making the transition from renter to homeowner. Here are 8 tips when transitioning from renter to owner in Northern VA to help you prepare for this significant milestone in your life.

After the challenging task of searching and then negotiating your offer, you may think that the job is done. You are ready to move-in, right! Not so fast, as it may take around 30-50 days to prepare the loan and associated documents to close a home and get the keys. You have to make sure that you time it right with the end of your lease. You don’t want it to be a renter-homeless-owner story!

As a Northern VA homeowner, there’s a lot more to pay for upfront than just a security deposit as a renter—from deposits, home loan origination, title insurance, land surveys, home inspection, insurance escrow, appraisal, among others. Then, of course, you have to consider mortgages, home association dues, etc. in the long run. Don’t let this scare you from purchasing a home, just don’t let closing costs to surprise you.

After-tax-benefit of homeownership costs take into account the tax benefits that homeowners can receive, such as mortgage interest deductions and property tax deductions. These tax benefits can help reduce the total cost of owning a home, making it more affordable for some individuals. However, it's important to note that these benefits vary depending on individual circumstances, such as income level and tax bracket.

With all these costs, don’t worry, your tax deductions will significantly lower the costs of homeownership. Mortgage interest and property taxes will be deductible in filing annual tax returns, and reduce your taxable income.

In getting the best mortgages, credit scores are very important. Those who lend want reliable and on-time payers, after all. If you only have one credit card, start getting more now, while you have time to grow your credit score. More credit accounts are seen as better.

Pre-approval is the first step to transitioning from Renter to Owner in Northern VA. You can’t only shop for the best-fitting home for you, but also the best-fitting lender too. Compare rates of your mortgage based on your loan type, location, purchase price, down payment, and as mentioned earlier, credit history. The J Group works with multiple lenders and we are happy to refer you several loacal lenders, all with amazing rates and loans.

Homeownership requires ongoing maintenance to keep the property in good condition and prevent more costly repairs down the road. It's important to stay on top of these tasks to ensure the home remains a safe and comfortable place to live. There will be maintenance on the exterior, landscaping, HVAC, plumbing, electrical, or appliances depending on if you own a condo, townhouse, or single family home. Make sure you budget for these items.

Think long term, when it comes to owning a home in Northern VA. Consider the fixed features of the home such as location, think of the things you may want to alter in the long run, even take note that the neighbors you will have in this new home may be your neighbors for a while, and if need be, think about the property’s resale value. In order to reap the benefits of owning a home, think a minimum of 4 or 5 years.

Bottom Line:

There are countless benefits of owning a home, but make sure you know what is ahead to set your expectations. If you are ready to explore if homeownership is right for you, contact us to set up a free consultation.