A $400,000 mortgage at 6.75% instead of 7.125% cuts principal and interest by about $101 per month – roughly $6,060 over five years before taxes, insurance, or extra principal payments. That is why a solid first time buyer checklist matters: small decisions made before you write an offer can change your monthly payment, cash to close, and even whether your deal survives underwriting.
By Duane Buziak, Mortgage Maestro, NMLS#1110647
Table of Contents
- What a first time buyer checklist should actually do
- The 6-step first time buyer checklist
- Key numbers first-time buyers should know
- Loan options compared
- Local market reality in Central Virginia
- How brokers compare with big lenders
- FAQ
- Legal disclaimer
What a first time buyer checklist should actually do
Most checklists are too vague. “Save money” and “check your credit” are not enough when you are trying to buy in places like Short Pump, Midlothian, or Glen Allen, where payment pressure is real and inventory can still feel tight in move-in-ready price bands.
A useful first time buyer checklist should answer four questions early. How much home can you carry comfortably each month? How much cash do you need before closing day? Which loan program fits your credit profile and down payment? And what can you do now to avoid losing a house over preventable underwriting issues?
If you want raw market context, Henrico County’s median sold home price was about $405,000 in April 2025, according to Redfin: https://www.redfin.com/county/3004/VA/Henrico-County/housing-market. That single number matters because many first-time buyers build plans around list price, not actual payment or cash needed.
The 6-step first time buyer checklist
1. Set a payment ceiling before you set a price target
Start with the monthly number, not the home search app. Principal, interest, taxes, homeowners insurance, and if applicable HOA dues all count. A buyer approved for more does not always benefit from spending more.
As a rough example, a $350,000 loan at 6.75% carries principal and interest near $2,271 per month. Add taxes, insurance, and HOA, and the real payment can land hundreds higher. In Chesterfield or Richmond, that difference affects debt-to-income ratios and reserves faster than most buyers expect.
2. Protect your credit before you shop
Mortgage pricing is tiered. A 760 score usually prices better than 720, and 720 usually prices better than 680. Conventional loans often start around 620, FHA can go lower depending on file strength, and VA has no statutory minimum score, though lenders often set overlays. Fannie Mae loan-level pricing details are here: https://singlefamily.fanniemae.com.
Do not finance furniture, open new cards, or move money around without a paper trail. Even a small payment shock from a new auto loan can reduce buying power.
3. Build the full cash-to-close estimate
First-time buyers often focus only on down payment. Closing costs and prepaid items matter just as much. In Virginia, a practical estimate for many purchase transactions is roughly 2% to 4% of the price, though it depends on taxes, insurance, escrows, discount points, and attorney or settlement fees.
A $375,000 purchase with 3% down means $11,250 down, but total cash needed can easily land well above that once prepaid taxes and insurance are included.
4. Match the loan to the file, not the other way around
Conventional is often strongest for higher credit and stable debt ratios. FHA can be more forgiving on credit profile and down payment. VA can be exceptionally efficient for eligible veterans because there is no monthly mortgage insurance. USDA can work in qualifying rural areas with income and property rules. Jumbo and non-QM products come with their own reserve and documentation standards.
This is where a checklist prevents expensive guessing.
5. Get prequalified with documentation ready
Speed matters once you find the right home. A soft-pull prequalification can help buyers estimate affordability while protecting credit. When you move toward a full application, be ready with recent pay stubs, W-2s or tax returns, bank statements, and photo ID. Self-employed borrowers usually need more documentation and should expect underwriters to look closely at income consistency.
6. Shop homes with inspection, appraisal, and timeline discipline
The goal is not just getting under contract. The goal is getting to closing. If a property has older systems, deferred maintenance, or pricing above recent comparable sales, your checklist should slow you down, not speed you up.
Key numbers first-time buyers should know
| Item | Typical benchmark | Why it matters | | — | — | — | | Conventional minimum score | Often 620 | Entry point, but pricing improves at higher scores | | FHA minimum score | Often 580 with 3.5% down | More flexible credit path for some buyers | | VA minimum score | No official VA minimum, lender overlays apply | Eligibility is separate from lender credit standards | | Closing costs range | About 2% to 4% of purchase price | Helps avoid underestimating cash to close | | Conforming loan limit in most counties | $806,500 in 2025 | Above this may require jumbo financing | | Reserve expectations | 0 to 6+ months depending on program and occupancy | More common on jumbo, investment, and layered-risk files |
The FHFA 2025 baseline conforming loan limit is $806,500: https://www.fhfa.gov. For FHA, HUD loan limits vary by county and are published here: https://www.hud.gov/program_offices/housing/sfh/ins/sfh203b.
Loan options compared
| Loan type | Common down payment | Credit profile | Monthly MI? | Best fit | | — | — | — | — | — | | Conventional | 3% to 5%+ | Usually stronger at 680+ | Sometimes, depending on LTV | Buyers with decent credit and lower long-term cost goals | | FHA | 3.5% | Often more forgiving | Yes | Buyers needing flexibility on score or debt ratios | | VA | 0% possible for eligible borrowers | Overlay-dependent | No monthly MI | Eligible veterans and active-duty borrowers | | USDA | 0% possible in eligible areas | Moderate | Yes, lower than FHA in many cases | Rural-eligible buyers meeting program rules | | Jumbo | Often 10% to 20%+ | Stronger scores preferred | Depends | Higher-price homes above conforming limits |
The trade-off is simple. Lower down payment options help buyers enter sooner, but they can carry higher monthly costs or stricter property and documentation rules. There is no universally best loan – only the best fit for your file.
Local market reality in Central Virginia
In Richmond-area suburbs, first-time buyers are often competing hardest in the lower-to-middle price bands, especially for updated homes near major commuter routes and retail corridors around Short Pump and Glen Allen. Inventory can feel better than the frenzy years, but desirable homes that are clean, priced correctly, and inspection-ready still move quickly.
That changes how your first time buyer checklist should work. In a competitive pocket, speed and documentation matter more. In a slower pocket, inspection strategy and seller concessions may matter more. A buyer looking in Midlothian may face different seller behavior than a buyer targeting older housing stock closer to Richmond city lines.
How brokers compare with big lenders
Buyers often ask whether to start with a broker, a bank, or a national retail lender. The right answer depends on the file. Straightforward wage-earner files can work in several channels. More nuanced files – variable income, self-employment, condo review issues, reserve requirements, layered debt ratios – often benefit from broader program access.
| Channel | Strength | Potential trade-off | | — | — | — | | Mortgage broker | Access to multiple investors and program types | Experience varies by broker | | Retail lender | Standardized process and large brand recognition | Fewer options outside in-house menu | | Bank or credit union | Relationship banking may help some borrowers | Product menu can be narrower |
Compared with names buyers often search, like Rocket, Movement, Veterans United, NFM, Atlantic Coast, CMG, or CapCenter, the real issue is not marketing size. It is whether the loan officer can structure the right file, explain the numbers clearly, and close on time without surprises.
FAQ
What is the most important part of a first time buyer checklist?
Your payment ceiling is first. If the payment does not work with real taxes, insurance, and debt, the rest of the checklist does not matter.
How much money should a first-time buyer have saved?
It depends on loan type, price, and reserves. Many buyers need down payment plus roughly 2% to 4% for closing costs and prepaid items.
Is FHA better than conventional for first-time buyers?
Sometimes. FHA can help with lower scores or tighter debt ratios. Conventional can be cheaper over time for buyers with stronger credit.
What credit score do I need to buy a house?
Many conventional loans start around 620 and FHA around 580 with 3.5% down, but better scores usually improve pricing and options.
Should I get prequalified before touring homes?
Yes. It keeps your search realistic and makes your offer stronger when you find the right property.
What can derail a mortgage after prequalification?
New debt, undocumented deposits, job changes, appraisal gaps, and property condition issues are common problems.
How long should my checklist timeline be?
Thirty to ninety days is common for preparation, but some buyers can move faster if credit, assets, and income documentation are already clean.
Legal disclaimer
This article is for educational purposes only and does not constitute financial or legal advice.
A good checklist should reduce stress, not create false confidence. If your numbers are tight, the smartest move is usually to slow down, verify payment and cash-to-close with real documents, and make decisions from facts instead of guesswork.
Duane Buziak, Mortgage Maestro | NMLS: 1110647 | Licensed in VA · FL · TN · GA | UWM PRO ELITE 2025 | UWM Top 20 Purchase LO Virginia 2025 | UWM Speed to Close Industry Leading 2025 | Scotsman Guide Top Originator 2025 & 2026 | VA Broker of the Year 2024-2025 | Top 1% Nationwide | Coast2Coast Mortgage | DuaneBuziakMortgageMaestro.com | duane@coast2coastml.com | (804) 212-8663
