Prepare for your home-buying journey and secure your dream property
with these streamlined, step-by-step first-time home buyer guides.
Buying a home in Virginia is an exciting milestone, but it’s normal to feel a little overwhelmed by the process. Whether you’re just starting to explore the market or you’re ready to start house-hunting, having a solid game plan makes a world of difference. This guide breaks down the financial steps, helps you identify potential assistance programs, and walks you through the path to homeownership — so you can move forward with confidence.
You might think the term first-time homebuyer only applies if you’ve never owned a property in your life. While that’s certainly true, the official definition is actually more flexible. According to the U.S. Department of Housing and Urban Development (HUD), you generally qualify as a first-time buyer if you haven’t owned a principal residence in the three years leading up to your new home purchase.
This is great news, as it means even if you’ve owned a home in the distant past, you may still be eligible for first-time homebuyer perks. There are also exceptions for specific situations. For example, if you’ve owned a home only with a former spouse, you still qualify as a first-time homebuyer. The same usually applies if you’ve only owned property that wasn’t on a permanent foundation, such as a manufactured home. Keep these criteria in mind, as they can unlock state and federal programs designed to make property ownership more accessible.
Virginia first-time home-buying assistance programs are designed to help you overcome common affordability barriers by offering ways to reduce or eliminate your down payment. There are also government programs with lower credit score requirements, allowing you to qualify for them even if your financial history is still developing. You can find grants and forgivable loans to cover your closing costs or down payment needs as well. These resources are sometimes provided as a second mortgage that incurs no interest and requires no monthly payments, often being completely forgiven if you remain in the property for a specified number of years.
In Virginia, you can access tax benefits such as the first-time homebuyer savings account subtraction, which allows any income produced by the account that’s taxed by the federal government to be tax-free in the state. In some cities and counties, you may have the option of regional down payment assistance programs too. Eligibility for these programs varies based on your income and location.
Lenders typically don’t all accept the same assistance options, so it’s best to communicate with your mortgage professional. Your loan officer will likely know which programs align with your needs and circumstances.
Recommended: Virginia First-Time Home-Buying Assistance Programs
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So you’ve been wondering how to buy a house for the first time. As you may have guessed, following a first-time homebuyer checklist can help you stay organized and reduce stress as you navigate the local market.
First, check your credit score. Having good credit can help you secure a lower mortgage interest rate. It’s also worth considering how long you intend to live in your new home. Staying in it longer will allow your home equity to increase through market appreciation and regular mortgage payments.
You’ll then want to examine your debt-to-income (DTI) ratio, as lenders look closely at your debt obligations compared to your income. Your DTI ratio should be no more than 50% to qualify for a government-backed loan. Conventional loans generally require that your DTI ratio stays under 43%, although 45% is sometimes possible if you meet other qualifying factors.
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Setting a budget goes well beyond just the sticker price of a house. To get a clear picture of what you can afford, you need to account for your monthly mortgage but also hidden costs like property taxes, homeowners association (HOA) dues, maintenance, and insurance. Using a home affordability calculator is a great way to start crunching these numbers.
Remember to also factor in one-time costs like moving fees, new appliances, and initial repairs. If you are relocating from another state, take a moment to research the local cost of living to ensure your budget is realistic for the area.
While the 20% down rule is often cited to avoid private mortgage insurance (PMI) and get a lower interest rate, it isn’t a hard requirement. Many first-time conventional loans require as little as 3% down, and some government-backed loans don’t require a down payment at all. You can use a down payment calculator to see what monthly payment works for you, rather than letting an arbitrary savings goal dictate your search.
There are several types of mortgage loans designed for different financial situations:
You may find a VA mortgage calculator or an FHA mortgage calculator useful when considering your options.
Take the time to shop around for a mortgage lender, because different financial institutions offer different interest rates and fee structures.
When comparing lenders, you’ll want to look at the APR (annual percentage rate), which includes the base interest rate plus other costs, such as lender fees and discount points. Note that the APR does not include all closing costs. By comparing these numbers, you can determine the true cost of your different home loan options. Other factors to consider are the overall customer experience and how quickly a lender responds to questions.
A mortgage preapproval letter is usually good for 30-90 days, and some lenders may offer you the option to lock the interest rate for that time period.
Prequalification is an informal step that uses a soft credit pull, which doesn’t affect your credit score and gives you a rough estimate of how much you might be able to borrow. You can get prequalified with as many lenders as you like.
The mortgage preapproval process, on the other hand, is a formal step where a lender verifies your financial background by reviewing your bank statements, pay stubs, and federal tax returns. Preapproval provides several benefits during the home-buying process, including helping clarify your home-buying budget so you don’t waste time on properties outside your price range. This document also gives you an edge over buyers who only have a basic estimate, as it shows sellers you’re a serious shopper who’s ready to buy.
While hiring a real estate agent isn’t strictly required, having an expert in your corner can save you significant time, stress, and money. A good buyer’s agent acts as your guide: They can filter out listings that don’t meet your needs, grant you access to off-market properties, and provide objective advice on homes you’re considering.
Perhaps most importantly, they are your advocate during the high-stakes negotiation phase and help you navigate the mountain of paperwork that comes with an offer. Keep in mind that compensation practices for agents have evolved recently, so don’t hesitate to ask potential agents how they are paid and what services they include before you sign a representation agreement.
As you start your home search, you’ll not only want to explore what properties might fit your budget but also research different neighborhoods to check the quality of nearby school districts and the length of your daily commute. After looking at several homes, you’ll better understand your preferences and separate your absolute needs from minor wants.
It’s also worth reviewing housing discrimination laws. Federal laws protect you from bias based on race, family status, sex, disability, national origin, or religious background. Understanding your rights help you stay protected during your property search.
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Once you find the right property, you’re ready to take action. Your agent can help you prepare an offer that outlines your proposed price, any contingencies, and a transaction timeline. Sellers may appreciate an organized timeline, helping your offer letter stand out, and contingencies protect you by allowing you to walk away if issues arise with financing or inspections.
If the seller accepts your offer, you’ll continue to the contract stage and submit an earnest money deposit, which is usually held in an escrow account to show the seller you’re acting in good faith. You can research comparable sales of similar homes in the area to negotiate a fair price and manage your expectations during a counteroffer.
Once your offer is accepted, the next critical step is scheduling a home inspection. Think of this as your safety check. A professional inspector will thoroughly evaluate the home’s major systems — like the roof, foundation, plumbing, and HVAC — to identify any red flags or expensive repairs that might be hidden from view.
Expect to pay between $300 and $425 for this service, but view it as an investment in your peace of mind. It’s highly recommended that you attend the inspection yourself; this gives you a chance to walk through the home with the expert, see any issues firsthand, and ask questions about future maintenance.
Ultimately, the inspection report empowers you to make an informed decision on whether to proceed with the purchase, negotiate repairs with the seller, or walk away if the findings are too severe.
While an inspection checks the physical condition, lenders require an appraisal to make sure that they aren’t loaning more than the home value. Your lender will hire the appraiser, to ensure objectivity. As with an inspection, an appraisal involves someone visiting the property and looking around.
Generally, the homebuyer or their real estate agent coordinates with the seller or their agent to make sure someone is there to open the house. This valuation helps ensure the transaction amount reflects the true market value of the property. The homebuyer pays the cost of the appraisal, which is typically in the $300-$600 range.
Closing is the final stage where property ownership officially transfers to you. You’ll have a final walk-through of the house to ensure its condition hasn’t changed and any required repairs have been completed by the seller.
Your lender will provide a closing disclosure document that outlines all final loan terms and upfront closing fees. Reviewing this document line by line ensures there are no surprises on the closing day. In the final stages, there’ll be a meeting with the closing attorney, escrow officer, or title company representatives to sign the official documents and settle your remaining out-of-pocket costs. Once the deed is recorded, the transaction is complete, and you’ll receive the keys to your new home. Congrats!
An online calculator can be a big help in comparing home equity loan rates and terms. And it’s not the only calculator you’ll find helpful during your home equity loan process:
Punch in your home loan amount and interest rate, and we’ll estimate your payoff date.
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
Provide us with a few details and see how much you can afford to spend on a home purchase.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
Cheers — you have the keys! Now comes the actual move. It’s easy to get caught up in the excitement, but staying organized is key to a smooth transition. Before moving day, ensure all your utility transfers (water, gas, electricity, internet) are finalized and file a change-of-address form with the post office.
Once you’re in, prioritize immediate tasks that protect your investment: Change the locks, replace the HVAC filters, and clear out the gutters. As you settle into your new routine, start a dedicated home-maintenance budget. Owning a home comes with unexpected expenses, and having a dedicated emergency fund for house-related issues will help you maintain your property’s value and protect your finances over the long haul.
Buying your first home in Virginia is a significant financial step, and it’s entirely achievable with the right preparation. By taking the time to evaluate your finances, research available assistance programs, and build a trusted team of professionals, you can navigate the market with confidence.
Focus on finding a home that fits your budget and your future, and remember that this process is a marathon, not a sprint. With a solid plan in place, you’ll be well-positioned to turn your dream of homeownership into a reality.
You will need to save for a down payment, which typically ranges from 3% to 20% of the purchase price. When you’ve found the right property and your offer has been accepted, closing costs run between 2% and 5% of the loan amount. Finally, your budget needs to be able to cover your monthly mortgage payments, property taxes, home insurance, and any homeowners association dues.
Conventional loans typically require a credit score of at least 620. For government-backed loans, FHA loans allow buyers to qualify with a credit score of 580 for a 3.5% down payment, or a score between 500 and 579 if you put down 10% or more. VA and USDA loans do not have a set minimum score, but you have to meet certain qualifications to be eligible.
It’s best to start the process by getting your finances in order. Review your total monthly income, track your nonhousing expenses, and calculate your available housing budget. Checking your credit score early can help you identify any errors and understand what terms lenders might offer, and gathering your financial documents can get you ready to contact a lender for preapproval.
When buying a home for the first time, it’s important to understand that the list price is just the beginning. You’ll want to factor in closing costs, property taxes, home insurance, and maintenance. Your credit score impacts what interest rates lenders might offer you, and a preapproval letter may help you compete for a home in a competitive housing market. Working with a real estate agent can help ensure your home-buying process goes smoothly.
This real estate rule advises spending no more than 30% of your gross income on monthly housing payments, having 30% of the home’s value saved in cash, and ensuring the home price is no more than three times your annual gross income. However, this savings rule may not always be realistic in the current market.
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*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
This article is not intended to be legal advice. Please consult an attorney for advice.Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
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