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Your complete resource for buying a home in the Commonwealth
Prepared by Settle Real Estate, LLC | settleva.com
A step-by-step roadmap tailored to Virginia's laws, customs, and market conditions.
Pull your credit reports from all three bureaus at AnnualCreditReport.com. Most Virginia lenders require a minimum 620 credit score for conventional loans. Calculate your debt-to-income ratio and determine a comfortable monthly housing budget, keeping total costs (mortgage, taxes, insurance, HOA) below 28% of gross income.
Contact at least two Virginia lenders and get a pre-approval letter. Pre-approval verifies your income, credit, and maximum loan amount. Use a VHDA-approved lender if you plan to apply for state assistance programs. Pre-approval letters are typically valid for 60 to 90 days.
Select a licensed Virginia agent who knows your target market. Following the 2024 NAR settlement, you will sign a buyer representation agreement outlining how your agent is compensated. Ask about their experience with VHDA programs and your specific locality.
Decide on location, home type, size, and must-have features. Virginia's market ranges from historic homes in Richmond's Fan District to new construction in Loudoun County. Drive your commute during rush hour. Research school districts, flood zones, and property tax rates by locality.
Visit properties with your agent. Take notes and photos. Check foundation condition (Virginia's clay soil causes shifting), HVAC age, roof condition, and signs of water intrusion. Compare each property against your criteria list before moving forward.
Your agent will prepare a Virginia REALTORS purchase agreement. Include your pre-approval letter, earnest money amount (typically 1% to 3% of the purchase price in Virginia), proposed settlement date, and contingencies for inspection, financing, and appraisal.
Hire a licensed Virginia home inspector within the contingency period (typically 7 to 10 business days). The inspector will examine the structure, electrical, plumbing, HVAC, roof, and more. Use the inspection report to negotiate repairs or credits with the seller.
Provide all documents your lender requests promptly. The lender will order an appraisal to confirm the home's value. Do not make large purchases, change jobs, or open new credit accounts during this period. Lock your interest rate when your lender advises.
Your lender must send the Closing Disclosure at least three business days before settlement. Compare every line item to your original Loan Estimate. Virginia is a wet settlement state, meaning all funds must be available at closing. Wire your closing funds to the settlement attorney's escrow account (never by email instructions alone; verify by phone).
Settlement in Virginia is conducted by a settlement attorney or title company. You will sign the deed of trust, promissory note, and settlement statement. Bring a valid photo ID and a cashier's check or wire confirmation. After all documents are signed and funds are disbursed, you receive your keys.
Four primary mortgage options available to Virginia buyers, with Virginia-specific notes.
| Loan Type | Down Payment | Credit Score | PMI / Insurance | Best For |
|---|---|---|---|---|
| Conventional | 3% to 20% | 620+ | Required if under 20% down | Buyers with strong credit and savings |
| FHA | 3.5% | 580+ (500 with 10% down) | MIP required for loan life (if under 10% down) | Buyers with lower credit scores or limited savings |
| VA Loan | 0% | No official minimum (lenders want 620+) | None (VA funding fee applies) | Active military, veterans, eligible surviving spouses |
| USDA | 0% | 640+ recommended | Guarantee fee (lower than FHA MIP) | Buyers in eligible rural Virginia areas |
Conventional: No Virginia-specific version; available through all VA lenders
FHA: Popular in Richmond and Hampton Roads markets
VA Loan: Virginia has one of the largest veteran populations in the U.S.; heavy lender competition means great rates
USDA: Many areas outside NoVA, Richmond, and Hampton Roads qualify; check USDA eligibility maps
The Virginia Housing Development Authority offers some of the best buyer assistance programs in the country.
30-year fixed-rate loans at below-market interest rates, available only through VHDA-approved lenders. Competitive rates due to state backing.
Up to 2% to 2.5% of the purchase price as a grant (not a loan). On a $350,000 home, that is $7,000 to $8,750 in free money. Must be combined with a VHDA first mortgage.
Up to 2% of the purchase price to help cover settlement fees. Can be combined with the DPA grant for up to 4.5% total assistance.
A federal tax credit equal to 20% of your annual mortgage interest for the life of the loan. On a $300,000 mortgage at 6.5%, that is about $3,900 per year in tax credits.
Eligibility: VHDA income limits vary by county and household size (approximately $97,000 to $145,000+ in 2026). You must use a VHDA-approved lender and complete an approved homebuyer education course. Visit vhda.com for current limits and lender lists.
Expect to pay 2% to 4% of the purchase price in closing costs. On a $400,000 home, that is $8,000 to $16,000.
| Cost Item | Typical Amount | Paid By |
|---|---|---|
| Grantee Tax (State) | $0.25 per $500 of sale price (~0.05%) | Buyer |
| Recording Fees | $200 to $400 | Buyer |
| Title Insurance (Owner's Policy) | $1,000 to $2,500 | Buyer |
| Settlement Attorney Fee | $500 to $1,200 | Buyer (sometimes split) |
| Title Search / Exam | $200 to $400 | Buyer |
| Lender's Title Insurance | $400 to $800 | Buyer |
| Appraisal Fee | $450 to $650 | Buyer |
| Home Inspection | $400 to $600 | Buyer |
| Prepaid Property Taxes | Varies by locality | Buyer |
| Prepaid Homeowner's Insurance | 6 to 12 months upfront | Buyer |
| HOA Transfer Fee | $0 to $500 (if applicable) | Varies |
| Survey (if required) | $300 to $600 | Buyer |
What to look for (and ask your inspector about) when evaluating a Virginia home.
Foundation cracks (horizontal or stair-step cracks are red flags; Virginia clay soil causes shifting)
Roof condition and age (asphalt shingles last 20 to 25 years in Virginia)
HVAC system age and condition (central AC is essential for Virginia summers)
Water damage signs in basement or crawlspace (Virginia gets 43+ inches of rain yearly)
Electrical panel age and capacity (look for Federal Pacific or Zinsco panels, which are safety risks)
Plumbing material (galvanized pipes in pre-1960s homes may need replacing)
Windows and insulation quality (affects energy costs in Virginia's hot summers and cold winters)
Grading and drainage around the foundation (water should flow away from the house)
Termite damage or evidence of wood-destroying insects (required separate inspection in Virginia)
Radon levels (parts of Virginia, especially the Piedmont region, have elevated radon)
Lead paint (mandatory disclosure for homes built before 1978)
Mold or mildew in attics, basements, and crawlspaces
Chimney and fireplace condition (common in Virginia homes)
Sewer or septic system condition (septic is common in rural Virginia)
Well water testing (if applicable; common in rural areas outside public water systems)
Use these questions to evaluate potential buyer agents and ensure they are the right fit.
How many buyers have you represented in this specific Virginia market in the past 12 months?
Are you a full-time agent, and how many active clients do you typically carry?
Do you have experience with VHDA programs and down payment assistance?
What is the typical timeline from offer to closing in this area right now?
How do you handle multiple-offer situations?
What is your availability for showings on evenings and weekends?
Can you recommend local lenders, inspectors, and settlement attorneys you trust?
How will you communicate with me throughout the process (text, email, phone)?
What does your buyer representation agreement look like, and how are you compensated?
Have you ever had a transaction fall through at closing? What happened?
Do you attend the home inspection and final walkthrough with your buyers?
What negotiation strategies do you use for new construction vs. resale?
How do you evaluate whether a home is priced fairly relative to recent comparable sales?
What are the biggest mistakes you see first-time buyers make in this market?
Can you explain Virginia's contract contingencies and how they protect me?
Key terms every Virginia buyer should know.
A Virginia state transfer tax paid by the seller at closing, calculated at $0.50 per $500 of the sale price (approximately 0.1%).
A Virginia state transfer tax paid by the buyer at closing, calculated at $0.25 per $500 of the sale price (approximately 0.05%).
Virginia uses a deed of trust instead of a traditional mortgage. It involves three parties: the borrower (grantor), the lender (beneficiary), and a neutral trustee who holds the property title as security for the loan.
In Virginia, a licensed attorney conducts the real estate closing (settlement). The settlement attorney handles the title search, prepares closing documents, disburses funds, and records the deed.
Virginia law requires that all loan funds be available and disbursed on the day of settlement. This protects buyers from post-closing funding delays.
A good-faith deposit (typically 1% to 3% of the purchase price in Virginia) that shows the seller you are serious. Held in escrow by the settlement attorney or title company.
Virginia law requires sellers to provide this form disclosing known material defects in the property. Sellers must disclose what they know but are not required to investigate.
The state agency that provides below-market mortgages, down payment assistance grants, and closing cost assistance to qualifying Virginia home buyers.
The point at which both buyer and seller have signed the purchase agreement and all terms are agreed upon. The contract is now legally binding.
A condition in the purchase agreement that must be met for the sale to proceed. Common contingencies include home inspection, financing, and appraisal.
Insurance that protects the buyer (owner's policy) and the lender (lender's policy) against defects in the property title, such as liens, encumbrances, or ownership disputes.
An account held by the settlement attorney or title company where earnest money and closing funds are deposited before they are disbursed at settlement.
The legal document that transfers property ownership from the seller to the buyer. In Virginia, deeds are recorded with the clerk of the circuit court in the county or city where the property is located.
An independent assessment of the property's market value, ordered by the lender. If the appraisal comes in below the purchase price, the buyer can renegotiate, cover the difference, or walk away (if the appraisal contingency is in place).
A service contract that covers repair or replacement of major home systems and appliances for a set period (usually one year). In Virginia, sellers commonly provide a home warranty to the buyer.
A five-page document from your lender that details all loan terms, monthly payments, and closing costs. Federal law requires you receive this at least three business days before settlement.
A lender's written commitment that you qualify for a specific mortgage amount, based on verified income, credit, and assets. Stronger than a pre-qualification.
An organization in a residential community that sets and enforces rules and collects monthly or annual fees. Virginia has specific HOA disclosure requirements that sellers must provide to buyers.
An additional transfer tax of $0.15 per $500 of the sale price applied in Northern Virginia and Hampton Roads localities to fund transportation improvements.
A Virginia program that gives first-time buyers a federal tax credit equal to 20% of the mortgage interest paid each year, for the life of the loan. Can be combined with VHDA loans.
Everything you need to do before, during, and after your move to your new Virginia home.
Set up mail forwarding with USPS (schedule at least two weeks before move)
Transfer or set up utilities: electricity, gas, water, sewer, internet, trash collection
Update your address with your bank, employer, insurance providers, and the Virginia DMV
Schedule movers or reserve a moving truck (book 4 to 6 weeks in advance for peak season)
Pack room by room and label every box with its destination room
Take photos of electronics wiring before disconnecting
Obtain copies of medical, dental, and veterinary records if changing providers
Register to vote at your new Virginia address
Research and enroll in new school districts if applicable
Change your address on your Virginia driver's license within 30 days of moving
Test all locks at your new home and consider rekeying
Locate the main water shutoff, electrical panel, and gas shutoff at the new home
Schedule a deep clean of the new home before move-in day
Introduce yourself to neighbors and learn about any local community rules or events
Our buyer specialists know every Virginia market and will guide you from pre-approval to keys in hand.
settleva.com
dustin@olversons.com
Virginia Licensed Real Estate Brokerage