Applying for Mortgage in West McLean, Virginia, United States

Buying a property is a significant investment. Here is a checklist for you to guide you every step of the way.

1. Before you even consider buying a property in West McLean:

• Know what you can afford - Generally speaking, the amount of mortgage you can have is approximately five times your annual income. So if you earn $60,000 a year, you may be eligible to get a $300,000 mortgage loan. If your income is not high enough, you can always have a co-applicant and use the combined income to determine approximately your maximum mortgage amount.
• Understand your liabilities and credit - The amount of liabilities you and/or your co-applicant have, as well as your credit history, may have a significant impact on your mortgage eligibility. The more liabilities, the less you can borrow. Bad credit history will make you not eligible for mortgage products from top lenders.
• Know the market - If you intend to buy a property in West McLean, familiarize yourself with the recently sold prices of properties in the area. There are apps available such as "RealMaster" that you can install on your phone to see sold prices in your area.
• Residency status - If you are not living in Virginia, you may be subject to Non-Resident Speculation Tax (NRST). (15% on the purchase price)
• Understanding the impact of your liabilities - If you have liabilities such as car loans, student loans, personal loans, or credit card debts, these liabilities will have a negative impact on the amount of mortgage loan you can have.
• Run a free online assessment - Use our free mortgage calculator to determine your eligibility for obtaining a mortgage from prime (A) and sub-prime (B) lenders.

2. When you are ready to buy a property in West McLean:

• Work with a realtor - Showings and offers on properties can only be placed through a licensed real estate agent or broker in Virginia. Make sure that you have a trustworthy agent that you know will act in your best interest.
• Have the deposit ready - The real estate market in West McLean is competitive. Often, homeowners will require buyers up to 5% deposit when placing offers.
• Understand the conditions of your offer - As the buyer, you can place conditions on your offers, such as home inspection and financing. In a "hot" market, most buyers waive some (or all) of the conditions to make their offers more attractive. So if you don't think a home inspection is necessary on a fairly new property, then you can waive it.
• Always schedule a showing - Never buy a property without seeing it first. During your visit, you can also take it as an opportunity to do some home inspection yourself.
• Market research - Before placing your offer, do some research on similar properties in the area in terms of their recently sold prices. So you know roughly what numbers you will be working with.
• Mortgage pre-approval - Before placing your offer, if you know the amount of mortgage you need, you can apply for a mortgage pre-approval after you have identified the property.

3. After your offer is accepted by the seller:

• Fulfill the conditions - You only have a few days to fulfill your conditions (e.g. home inspection and financing). In most cases, five business days. This means all conditions will be considered waived after five business days.
• Find a real estate lawyer - Find a real estate lawyer to assist you with the legal components of your purchase.
• Find a mortgage agent - Find a mortgage agent to start your mortgage approval process.
• Mortgage approval - Work with your mortgage agent to obtain mortgage approval on the property. You will be required to submit various documents. (read: documents required to apply for a mortgage)
• Understanding costs - There are various costs involved in a mortgage transaction. Make sure you have a good understanding of all the costs before committing to a mortgage agreement. (read: costs to expect when obtaining a mortgage)
• First-time homebuyer benefits - If you or your co-applicant are buying the property for the first time, you may be eligible for first-time homebuyer benefits. (read: first-time homebuyer benefits in Canada)

4. Before you move in:

• Check on your property - Depending on the purchase agreement, you may be able to schedule a meeting with the seller before the closing date. It is a good practice to check on your property within a week before the closing date. Use this as the opportunity to make sure that the seller is keeping the property in the same condition before you take possession.
• Collect documents and keys from your lawyer - On the closing day, collect all the documents and keys to your property from your lawyer. Review the documents and keep them safe.

5. After you move in:

• Setup utility accounts - Make sure that electricity, gas, water, and waste management services are set up under your name for your property moving forward. (And make sure they are cancelled for your previous property, if applicable.)
• Other actionable items - There are many other things that you can do when you move into a new property, such as changing locks, renovation, cleaning...etc. Priorities are different for different homebuyers.

Aaron Lee View Profile

Licensed Mortgage Agent Level 1
Brokerage: MortgageAssessment.com
Residential Mortgage · Commercial Mortgage · Fixed Rate/Variable Rate Mortgage · Open/Closed/Convertible Mortgage