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How Much Money Do I Need To Buy A Home in Virginia?

You Might Be Pleasantly Surprised...

Lots of people are asking "what do I need to buy a home in today's real estate market?" The answer to that question will depend on the type of loan you are getting:


Convention Loan-minimum down payment required is five percent of the sales price. There is an advantage in today's market of using Conventional Financing versus FHA or VA. Conventional Financing is less expensive for sellers. This loan sometimes can be just the Term that is needed to win a bid. If you have the ability to lay out a five, ten even twenty percent down payment you will have a competive edge in today's Buying a homereal estate market.


FHA Loan- reguires a minimum of three and a half percent down payment. On a $300,000 home that would be $12,250. Of that you would only need a portion of that for the earnest money deposit.


VA Zero Down Loan. If you are a military veteran (past or present) you can use this program. Many banks and sellers are still assisting with closing costs. The last few buyers we help purchased homes with less than a thousand dollars!


Cash is King! It always has been and will continue to be. In a competive real estate market like the one we have in Northern Virginia. A cash buyer will most likley always win if their terms are reasonable

The key to really knowing what you need, is to get pre-approved for a home loan prior to searching. This way there are no surprises at the last minute. Here are two excellent loan officers who can have online preapproval access

So let me share with you the timeline and what is money is needed and when:

At time of Contract you will need to write a check for the Earnest Money Deposit.( this can range from $1000- $7000 depending on the size of your loan) If you contract is accepted by the seller, you are on your way to home ownership here in Virginia! The earnest money deposit will be cashed and thmoneye money will be held in an escrow account to be credited toward your purchase.


Within the first 10 days:

  • You will need money for the Home Inspection. This fee can be as high as $500.00

Two weeks before settlement :

  • You will need to purchase a one year Home Owners Insurance Policy just before you settle on the home. If you are using USAA they will bill you. Most companies collect this money up front. The cost could be as low as $400 to as high as $1500. ( this is called a pre-paid item)
  • You may need deposit money when turning on utilities.

Within 30 Days: note this is typically settlment day. If you are buying a new home you will have more time to save funds for settlement.

  • If you are buying a Bank Owned or Foreclosed home, keep in mind repairs will be at your expense. Most Bank Owned Homes and Distress Sales are sold "As Is". No repairs will be made. The condition you see, is the condition you get on settlement day. Chances are good if you do not have a huge savings account, you may want to consider a different type of purchase.
  • When you purchase a home, the day of settlement the Title Company reconciles the balance sheet so to speak. This where each party to the contract, the buyer and the seller are charged and credited for items noted in the contract, and from changes in terms along the way. Sellers will be charged for termite, well and septic inspections and buyers closing costs that were agreed to. Buyers will be charged attorney fee's, survey, appriasal and credit report fee's, points you agreed to pay your lender. In the end the title company will deduct your expenses from what the seller agreed to pay on your behalf. For a Veteran Buyer the goal is to Zero out at the bottom. That's the goal.

Don't forget, if you purchase a home prior to December 1st, 2009, you may be elegible to recieve the $8000 Tax Credit. Read more here

Realtors in Virginia are paid by the seller.

Would you like to search for homes in your price range right now in the Woodbridge, Lake Ridge, Manassas Virginia area?

Just follow this link SEARCH WOODBRIDGE AREA HOMES NOW.

Have a great day, let me know if you need anything

Peggy James direct # 703-851-3085

or contact me by email

Contact Peggy James or Erick Blackwelder of Erick and Company of Exit 1st Choice Realty, Woodbridge VA. Realtors®, call 703-851-3085 (Peggy) or 703-590-2252 (Office) to list your property for sale or to purchase a property in Lake Ridge, Westridge, Old Bridge Estates, River Falls, Middle County, Manassas, Montclair, Dumfries, Occoquan, Dale City, Gainesville area's

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Posted Tuesday Aug 04