Buying a House

Homeownership Matters to Families and Communities

No matter the generation, time and again it's proven that homeownership remains a key ingredient in the American Dream. Owning a home provides financial stability, makes it easier to build personal wealth, helps in establishing social stability, and gives you the freedom to plot your own course in life. The community also benefits from homeownership by gaining active, engaged residents who have a stake in the future of each neighborhood. Our REALTORS® know the benefits of homeownership for people, and why it's so important for communities to have a strong base of homeowners.

• The Perks of Owning Over Renting
  The initial investment required to own a home can be scary for first-time buyers, but there are many long-term financial benefits to owning over renting. Both rent rates and the value of homes tend to rise over time. When rent goes up, only the landlord benefits. When the value of a home that you own goes up, you're the one to benefit. With the variety of assistance programs available for people who want to own a home, the upfront investment isn't nearly as daunting as it seems. Over time, as you make your mortgage payments, your equity in the home and personal wealth build. Add it all up, and homeownership just makes more financial sense than renting.

• A Place to Call Your Own
  Of course, owning a home is about far more than financial benefits. When you buy a home, you can customize it to suit your needs and make it your own in ways that you never could with a rented dwelling. Your home is your own personal space in the world, where you can be comfortable and enjoy time with the people you care about most. It's a place where you can host family, friends, and neighbors while creating memories that last a lifetime.

• How Homeownership Builds Strong Communities
  Buying a home also provides a chance to lay down roots, and truly become a part of the community. When people own homes, they're more likely to care about the future of the neighborhood and do what they can to add to the community. Homeowners become active in community organizations and provide many benefits to the local economy. When more people have a stake in the future of the community thanks to homeownership, the whole community ultimately benefits.

• Social Stability Benefits Families
  Your home is both a gathering place for your extended family and a place to lay down roots for immediate family members living under your roof. Kids benefit by being able to attend the same school throughout their education, build relationships with community members, make friends, and participate in community events. Everyone in the home benefits from having a place in the neighborhood to call their own, and being able to build a life in the community.

• Building Your Own Dream
  While there are many similarities, everyone has their own reasons for pursuing the dream of homeownership. Whether you want a place that you can customize to your heart's content or an opportunity to build a life in the community of your choice, homeownership simply offers benefits that renting can't match. Owning a home gives you the freedom to pursue the life you want, and that's the real dream!

Whether you're a first-time buyer or a homeowner looking for a new place to call your own, our team is here to help you achieve your homeownership dreams. Contact us to buy and sell homes throughout the Central Shenandoah Valley and Eastern West Virginia.

Your credit score is a golden key that can unlock the best interest rates and loan options for your new home.

It's a simple equation: A higher credit score = A lower interest rate = Your home costs you less money. 

Before you apply for a loan you want to make sure that your number is as polished as possible. To help you attain the most advantageous loan, our real estate agents share the following steps to take before you begin your home search.

1. What's in a Number? 
   Your FICO score is a reflection of your debts, loan repayment history, and monthly financial obligations. Ideally, you want to push your score up as high as possible. If you have a score in the "exceptional" range of 800-850, or "Very Good" range of 740-799, you'll generally qualify for the best interest rates.
   
   If you have a "Good" score of between 670-739, or "Fair" score of 580-669, you can qualify for most loans. However, you may need a larger down payment and could shoulder the burden of a higher interest rate.
   
   
2. Examination and Disputes
   Credit scores take time to grow and you will want to start the process of improving your score long before you start submitting loan applications. One of the first things you should do is pull a copy of your credit reports from Experian, TransUnion, and Equifax. This is critical as not all creditors report information to all three bureaus.
   
   Once you have your reports, examine them for errors. Check current balances, make sure payments are credited, and look for stale information that should be removed. You should dispute any incorrect information and actively pursue the removal of bad data from your credit reports. It is a common problem and more than 40 million Americans have at least one error on their reports and you want to make sure that you are not one of them.
   
   
3. Paying Down Balances
   It is always advisable to pay off as much debt as possible prior to requesting a new loan. This is especially important regarding credit cards with high-interest rates. Pay these balances down as much as possible, but don't pay them off and close the account as this can reduce your average credit length which can drop your score. 
   
   
4. Raise Your Credit Limit
   It's not advisable to open new accounts prior to requesting a loan. However, if you have a good history with a creditor, you may be able to request a credit increase. Raising your available credit limits reduces your debt-to-credit utilization ratio which is approximately 30% of your FICO score.
   
   
5. Diversify Your Credit
   If you have limited or poor credit, you may want to consider getting a short-term, secured loan from your current bank. Your credit mix accounts for 10% of your score and this can give you a slight boost once you pay the loan off. 
   
   
6. Establish Good Habits
   Credit scores are ultimately a reflection of how well you manage your finances. Before you purchase a home, you want to establish good financial habits which your score will reflect. These include making payments on time and not "maxing" cards out. Towards your goal of homeownership, one of the best ways to make sure you keep your score rising is to establish a monthly budget and avoid spending any more than you plan in any given month. 

Our preferred mortgage, F&M Mortgage, can help you better understand your options when it comes to qualifying for and obtaining a home loan.

Contact us when you're ready to start your search for the right home for you.

Buying a house can be challenging. If you are looking for Harrisonburg homes for sale, the perfect home is not likely to just magically appear. In almost all home purchases, those buyers who find their dream home remain firmly in the driver's seat throughout the entire house-hunting process.

With that in mind, you can increase your chances of finding and buying the perfect home for you and your family by following some of the same steps other successful buyers have used.

1. Lay the Groundwork.
   Ideally, six to 12 months before you begin your home search, you should run your credit report. Review the report carefully and check for any inconsistencies so that you can clear up the errors. If you find that you owe some debts, get these paid off immediately. You want to approach your mortgage lender with a credit score that is as high as possible.
   
   
2. Crunch the Numbers.
   Proactive homebuyers get loan pre-approvals from their lenders before embarking on their house-hunting quests. This is important because it narrows your field and doesn't waste your or your real estate agent's or the sellers' time and efforts. Some sellers will not even allow their homes to be shown to potential buyers who don't have pre-approvals.
   
   
3. Find the Best REALTOR®.
   When you're searching for a home, your REALTOR® literally holds the keys to your dreams. You want to choose someone with whom you have a good rapport and who understands your concerns and home-buying goals. Your real estate agent should be responsive to your needs and return telephone messages quickly.
   
   
4. Know What You're Looking For.
   With budget constraints in place, consider what you really want to have in a home. Is moving into a certain school district a priority? If so, start your search there. Is your heart set on a two-story older home on an acre or more? Steer clear of subdivisions of ranch homes on small plots of land.
   
   
5. Be Open to Possibilities.
   Even though you have a certain ideal in mind, keep an open mind for some outliers that just might fit the bill. Sometimes a thorough renovation or re-purposing of existing space can turn a so-so option into the house you've always longed to own.
   
   
6. Be Bold or Go Home.
   In a tight housing market, there's always the chance that you will find the home of your dreams only to find it snatched out from under you and sold to another buyer. If you find a home you love, don't drag your feet on making an offer. While you don't want to rush such a big decision, sometimes you have to take a leap of faith and make an offer.
   
   
7. Don't Look for a Unicorn.
   Your real estate agent can't wave a wand and produce the perfect white picket-fenced home in your price range and the right school district, with the exact number of bedrooms and bathrooms you seek. Unicorns don't exist and you can exhaust yourself in the process of trying to find one. Your home-buying search needs to remain centered in reality. While you shouldn't have to "settle" on such a major purchase, you must remain mindful of the parameters of your search and adjust your expectations accordingly.

If you'd like to learn more about some of the homes for sale Old Dominion Realty has listed, our REALTORS® can help. Contact us to to get your house hunt started today.

Before you start shopping for the right house, you have to shop for something else: the right mortgage. Pre-approval is practically mandatory if you want sellers to consider your offers, and comparing different rates and terms is just as important as comparing different properties. Because your rate will determine the size of your monthly payments for decades to come, you want to choose a loan with as little interest as possible. But do you know how lenders come up with this important number in the first place?

Many different factors and figures affect your interest rate, and you can't predict or control all of them. Our real estate agents want you to understand your fluctuating options when you know more about the math behind them. Here are some of the things banks and other lenders consider as they calculate interest rates for home loans:

Economic Trends (Supply and Demand)

Interest rates get higher when lenders take on additional risks, and some risks have nothing to do you with you. For example, are you buying a home in an unstable financial climate? Housing markets suffer, and layoffs are more likely during economic slumps, so lenders must take local and national trends into account as they consider their risks. That's why lenders usually follow the Federal Reserve's lead, lowering or raising interest rates as the federal rate changes.

Lenders also depend on a secondary market of bundled mortgage bonds, so their rates are influenced by the investors who will purchase your loan from them. These investors want high yields on the investments they make, and the laws of supply and demand apply to mortgage bonds too. Your lender wants a loan that will be profitable enough to attract investors, so they must take investors' risks into account.

Your Credit History and Amount of Debt  

How likely are you to make every mortgage payment on time, in full? Lenders only charge their prime rates (their lowest current rates) to borrowers with fantastic track records. That means your credit score and credit history will play a huge role in the rate you receive. Late or missed payments will make your rate soar, while a history of on-time payments will make lenders feel better about their risks. If you have an established relationship with your lender, that may boost your reliability too.

Of course, you also need the funds to make those payments. Debt-to-income ratio is just as important as your salary because it determines your available income every month. If you have a lot of outstanding debt, you're a bigger risk to lenders, even if your credit score is stellar.   

Price, Age, and Location of the Property

Already have an interest rate from a bank? Until you make an offer on a specific home, that number may not matter much. Lenders calculate a new rate for every loan, and yours will be affected by the value of the home you want to buy. For example, lenders look up historical data of similar houses in the area, considering the market value and recent selling trends. They may even offer different products for different types of structures or neighborhoods.  

Of course, the price of your house plays a big role too. While your down payment and closing costs will also affect the size of the loan, you should usually expect higher interest rates for homes with higher prices.

Are you ready to buy a house? At Old Dominion Realty, our real estate agents are happy to make this process as easy (and easy to understand) as possible, from mortgage pre-approval to closing day walkthroughs. Contact us to find an experienced agent near you.   

Our REALTORS® at Old Dominion Realty WORK to help you find a home where you will be truly happy. A lot of factors go into that: The community, the amenities, and your finances.

The financial decisions you make when you're first looking for a home will stick with you for years to come. With that in mind, you have to go into the process with accurate information.

Your real estate agent will help you make the right choices in the market. Only you, however, can figure out the facts about your own household finances that you're sure to need.

Every major investment or purchase starts with one thing: A budget.

And buying a home is no exception.

A budget is a very useful tool for maintaining your financial health. However, most people get by with a simple budget. To get ready for buying a home, you should dive deep into the details.

That's the best way to prevent surprises later!

Let's look at how to build a budget that will support your home buying goals.

• Start With Your Income
  The first thing you need to understand in any budget is how much income you have. For most buyers, this is simple: Add up the total take-home pay each person receives each month. If you have a variable income, such as from freelance work, an average figure derived from your last twelve months of income can give you a good fix on what to expect.
• Capture Your Expenses
  A budget can only be accurate if you capture your expenses in detail. Rent and utilities are two basic expenses that rarely change. Food, too, is relatively fixed. Others may be harder to pin down: such as transportation, medical costs, recreation, and monthly savings. Try recording some of these transient costs for 2-3 months to see where you really stand.
• Calculate Homeownership Costs
  Ideally, your monthly home costs should be no more than 25% of your total take-home pay. For a budget of $6,000 per month, that's $1,500. In addition to your mortgage, including the costs of maintenance and repair, HOA fees, landscaping, and housewares. Remember that higher square footage can translate to more expensive utilities. Also, recalculate your daily commute.
• Look Ahead to Your Next Milestone
  If you've been saving vigorously for a down payment, then the day you move into your home will transform your budget. Before you pop the champagne, however, consider what future milestones you may be saving for next. For example, is it time to expand your retirement investments, save for a new car, or even plan for a new member of the family?
• Adjust Your Budget Where Necessary
  If income and expenses are balanced at the 25% mark, then the way is clear for you to move forward with your home buying plans. If things are still tight, the first thing to look at is whether a plan of 20% makes more sense. From there, you may be able to save a few dollars if you look at the cost of recreation (nights out) or food (more cost-effective groceries and meals.)
• Keep an Eye on Future Opportunities
  When you choose to buy a home, you'll have to work with the conditions that exist at the time. Sometimes, however, future improvements in the market can help you. If the housing market gets better after you buy, contact your lender. They may be able to help you reduce your monthly payments by refinancing your mortgage loan at a better interest rate.

To learn about local real estate opportunities, contact us at Old Dominion Realty today.

Buying a home is a big step, and there are many details to consider to help ensure that it is a step in the right direction. While commute time is a detail that many people tend to overlook – especially if they find a home or neighborhood they love – our real estate agents know that it's important to factor it into the decision-making process. How much does commute time matter? Taking on a long or stressful commute every day can impact your quality of life in many ways, so keeping commute time in mind as you shop for your home can prevent regrets later.

Why Commute Time Matters

Commute time can seem like a minor detail among the many things you'll need to look into as you compare Harrisonburg homes for sale. However, unless you're lucky enough to have a very flexible work situation, it's an aspect of life that you will have to deal with day in and day out, usually five days a week. Here are some of the ways that a longer commute could impact your daily life.

• Commuting Can Be More Costly Than You Realize
  Most people drive themselves to work, and adding up the expenses of doing so means taking more than just the cost of gas into account. Other costs to tally up include any tolls you pay on your route, parking fees, auto insurance costs, which are partly based upon daily mileage, and the costs associated with wear and tear on your vehicle, including routine maintenance, occasional repairs and periodic replacement of tires, for instance. Those costs can stack up over time. According to CNN, the average American spends $2,600 per year getting back and forth to work. If your commute is longer than average, which CNN says is 45 minutes and the US Census Bureau places at 26.1 minutes, your costs will be higher. Factoring in these costs as part of your overall housing expenses can provide a clearer perspective on whether or not a home you are considering is as affordable as it may appear at first glance.

• Commuting Can Eat Up A Lot of Your Time
  Whether you spend that 26.1 minutes each way, 45 minutes or more, that commuting time adds up over a five day week, and most certainly over the year. Even at the low end – 26.1 minutes each way – you'll spend more than four hours a week in the car and over 200 hours per year, leaving you much less time for other things, like spending time with family, household tasks, hobbies or relaxing after work.

• Long Commutes Can Be Hard on Your Health
  Spending all that time on the road can cause stress levels to rise, and stress takes a toll on physical, emotional and mental health. Chronic stress is known to contribute to conditions that include anxiety, depression, back, neck and shoulder pain, overweight/obesity, diabetes, high cholesterol, and heart disease, among others.

Of course, while long commutes may be stressful for some, they work quite well for others. Many people enjoy driving or just having that time to themselves to unwind before arriving home. Either way, it is important to weigh your options and know what you'll be getting into should you choose to purchase a home some distance from your workplace. For more tips on how to work out the best location to suit your needs as you shop for your new home, feel free to contact Old Dominion Realty – our team is always happy to help.

Relocating for a new job is one of the most common reasons for moving to a different area. Unfortunately, starting a new job also presents a few challenges for anyone planning on becoming a homeowner. One of the biggest things that mortgage lenders look for is income stability, and having recently started a new job might throw up a red flag. But don't panic—our REALTORS® have a few tips to help you buy a home with a new job.

Getting a Mortgage with a New Job

One of the biggest things a lender wants to know before offering you a mortgage is whether or not you have reliable income that will allow you to make your mortgage payments every month. That means that, while it's not impossible to get a mortgage with a new job, it does create some potential complications. How your new job affects your home ownership prospects depends on several factors, so keep a few things in mind:

• If you suddenly find yourself changing jobs during the mortgage application process, it's important to let your lender know as soon as possible, so as not to throw a wrench in the process any more than necessary.
  
  
• How your new job will affect your mortgage depends on whether your new job represents a promotion, demotion, or lateral move. If you're starting a new job with similarly structured pay, or are being promoted to a position with a higher salary, your mortgage prospects may not be negatively affected at all.
  
  
• If you're starting a new job with a different company, it should ideally be with a stronger company, offering better benefits, or a higher salary. To show stability, provide your lender with a resume showing your last two years' employment history. This will show that you are making a positive career move, and not just bouncing from company to company without a plan.
  
  
• Starting a new job in a new city can actually be a positive thing if the new job includes a relocation package. If so, it gives your lender concrete evidence that you'll be able to pay the closing costs.
  
  
• If a significant amount of the income at your new job comes from sales or commissions, be careful. Income from commissions, bonuses and overtime is generally averaged out over the last 24 months, and changing to this type of pay structure during the application process can seriously hinder qualifying for a mortgage.
  
  
• If you're going from a job as a salaried employee to being self-employed, an independent contractor, or starting your own business, know that you may have a very difficult time getting a mortgage. Most lenders prefer to be able to see a two-year history of being self-employed, so you might be well-advised to wait.
  
  
• Keep in mind that, even if you're starting a new job, you still have to pass essentially the same home loan requirements as everybody else, including credit scores, ability to make a down payment, and debt-to-income ratio.

Whether you're relocating for a new job, or are interested in becoming a first-time homeowner, our team is here to help you every step of the way. Contact us at Old Dominion Reality today to learn more about how you can make your dream home a reality.

Buying your first home is a big step—think you're ready for it? We certainly hope so, but we also want to make sure that you buy your dream home at the right moment.

At a certain point, every renter gets to a place in their life where they just don't feel like they can do it anymore. Whether it's the noisy neighbors, the overbearing landlord, or the feeling of powerlessness that comes from continuously paying for a living space you'll never own, you just have to get out. Homeownership is the next logical step.  Here are six questions our REALTORS® want you to ask yourself before you decide to go for it.

1. Do you plan on living here for the long haul? Some folks look for a new home out of restlessness, but restlessness and homeownership are not a good combination. If you really want to buy a house, make sure it's in an area where you can see yourself living for many years to come. If you think you'd like to move again within five years or less, it might be better to put off owning your home until then.
   
   
2. Are your finances in order? At a risk of stating the obvious, before buying a home it's essential that you now you can afford it. And you don't just have to convince yourself, you also have to convince a home mortgage lender, which means proving that you have a good credit score, income stability, and minimal debts. But don't bankrupt yourself by putting all your savings into buying a home. It's smarter to wait until you have enough of a nest egg to live comfortably even after you've made the down payment, or else you could find yourself in a very precarious financial situation.
   
   
3. Are you ready for the responsibility? The costs of homeownership don't end with your down payment or even your monthly mortgage payments. What if the furnace breaks down? Or the roof has to be repaired? It's important to make sure you're personally and financially able to take on that responsibility.
   
   
4. What if you get a new job? For better or worse, the model used by previous generations—get a job, keep it forever, buy a house and retire—doesn't really apply anymore, which makes job stability a crucial consideration before you buy a home. You should be fairly confident that your job is secure, and that if you do end up taking a new job, it will be in the same area for an equal or greater salary.
   
   
5. Are you okay with making the monthly payments? Nobody enjoys being in debt, and your home mortgage is almost certainly the biggest loan you will ever have to repay. Make sure you're comfortable with the prospect of paying off your mortgage one month at a time for many years to come.
   
   
6. Why are you buying a home? It's an honest question that you need to ask yourself. It's tempting to see buying a home as hitting the reset button on your life, but if you're thinking about buying a home when you've recently gone through a break-up, divorce, job shake-up, or a death in the family, it's smart to take a step back and re-evaluate the decision at a later time.

Still think you're ready to buy your first home? If so, we're here to help. Contact us today at Old Dominion Realty to learn more about how to get started on the path to homeownership.

It's hard to size up a home at first glance, and even harder to judge an entire neighborhood, but both are important. If you're searching for a home, it's important to remember that your new home isn't just a house; it's a street, a neighborhood, and an entire city. So how do you know that your new neighborhood is the right one?

That's a question that our REALTORS® get asked a lot with many different answers. When you're planning on buying a house, these are the things to look for in the surrounding neighborhood:

1. Lifestyle Match
   The best indicator that a neighborhood is right for you is that it's in sync with your lifestyle. This means something different to each person, but it's worth taking the time to size up a neighborhood and ask yourself if it suits your lifestyle. If you're an active person, your neighborhood should have plenty of trails and outdoor spaces. If you like to go out at night, it's nice to live somewhere with hopping nightlife. If you're kids are about to start school, it's essential that you evaluate local schools.
   
   
2. Crime Rates
   The lower the crime rate in your neighborhood, the better. Crime rates are a good way to ascertain if a neighborhood is improving, getting worse, or staying the same. A number of online tools are available to find out more about a neighborhood's crime rate, but it's also a good idea to talk with the locals about it before buying a house.
   
   
3. Pride in Ownership
   One way to evaluate an area is to find out if the people who live there take pride in their neighborhood. This is actually very easy to do—just look at the other houses. Are they neat, well-kept and maintained, or are they messy and falling into disrepair? If the homes are well taken care of, that's usually a sign that the people who live there care about their neighborhood.
   
   
4. A Sense of History
   There's nothing wrong with moving into a new home in an up-and-coming neighborhood. But there's something undeniably appealing about a historic area, and it's not just the nostalgia factor. If you see well-kept historic homes on streets lined with old, mature trees, that shows that the neighborhood has been stable for a long time, and will probably continue to be in the future.
   
   
5. Getting Around
   Consider the amenities in the neighborhood—stores, restaurants, schools, banks, hospitals—and think about how easy they are to get to. No one likes a long commute every day, and it's always better to have amenities close by. Ideally, a neighborhood should be easily walkable, have access to reliable public transportation, or both.

Before buying a house, contact Old Dominion Realty to learn more about homes for sale in Central Virginia's Shenandoah Valley and Eastern West Virginia. Our team will help you find a house and a neighborhood that you'll be happy to call home. 

Anyone who has shopped for a home knows what it's like to spend countless hours dreaming about your ideal home, scouring every online listing in your area, and attending open houses to get an up-close look at your favorite properties.

These can all be fun activities when you're working to buy a house, and they also present valuable learning opportunities that will help you find the right deal for your needs. But is it still worth it to attend an open house, even if you're not ready to purchase? Our REALTORS® are here to explain why with five reasons to attend an open house even if you're not planning to buy.

1. Learn More about Your Likes, Needs, and Wants
   Looking at homes online is fun, but it's hard to make decisions on what you want just by looking at photos or video of the home. Attending an open house allows you to see the features of a home up close and personal, so you can get a better idea of what you'll want when the time is right for you to buy a house. Be sure to take notes as you go, so that you'll have something to look back on when you're ready to shop for a home. 
   
   
2. Get to Know Listing Agents
   Even if you're not ready to buy, getting to know local listing agents will serve you well when you do decide to enter the market. An open house is an excellent chance to see listing agents in action, ask questions, and see if the agent is someone you'd like to work with in the future. Finding the right real estate agent makes it so much easier to find the right home, and attending open houses will put you in touch with a diverse group of real estate agents in your area.
   
   
3. Discover Design Ideas for Your Current Home
   Perhaps you own a home that you love, and don't see yourself leaving anytime soon. You can still benefit by attending an open house! Visiting different homes in your area is a fun, easy way to pick up interior design ideas, gauge the latest decorating trends, and learn more about landscaping. Attending open houses is also an excellent way to find staging ideas, in case you ever do decide to sell.
   
   
4. Market Research
   Whether you're buying, selling, or browsing, attending open houses can tell you quite a bit about the real estate market in your area. If you find yourself visiting crowded open houses in the same neighborhoods, then there's a good chance homes are pretty hot in that area. Open houses also provide opportunities to trade intel with other shoppers, and discuss the market with listing agents.
   
   
5. Dreaming of the Future
   There are plenty of practical reasons for visiting open houses when you don't plan to buy, but there's also nothing wrong with visiting an open house just to dream on your own future home. Dream of your favorite features, your ideal neighborhood, or the perfect home for your family. While you're there, you can still learn plenty of valuable tidbits for when you're ready to buy a house.

Are you ready to shop for your dream home, find the best open houses, or stage an open house of your own? Contact Old Dominion Realty to learn more about how our experienced, local team can help with all of your real estate needs.