A $400,000 home with 5% down requires a $20,000 down payment and a $380,000 loan. At 6.50% on a 30-year fixed loan, estimated principal and interest is $2,402 per month. At 6.75%, it rises to about $2,465 – a $63 monthly difference, or $3,780 over five years before taxes, insurance, and mortgage insurance. That is why a first time buyer roadmap should begin before you tour homes: small financing decisions have real dollar consequences.
Buying your first home is not about finding the perfect listing on day one. It is about knowing your payment ceiling, protecting your credit, selecting the right program, and moving fast when a home fits. In Richmond, Glen Allen, and Midlothian, buyers can still face competition for homes that are clean, correctly priced, and move-in ready, even when overall inventory improves.
Table of Contents
- Start with a payment and cash-to-close target
- Protect your credit before full underwriting
- Match the loan program to your profile
- Compare broker options before making an offer
- Prepare for the offer, inspection, and closing
- First time buyer roadmap FAQ
Start With a Payment and Cash-to-Close Target
Do not begin with a maximum purchase price from an online calculator. Start with the monthly amount that leaves room for utilities, repairs, savings, transportation, and the life you want after closing. Your housing payment includes principal, interest, property taxes, homeowners insurance, and possibly mortgage insurance or homeowners association dues.
For context, the 2025 baseline one-unit conforming loan limit was $806,500, according to the Federal Housing Finance Agency. That limit is well above many first-time buyer price points, but it does not mean a buyer should borrow that much. Approval capacity and personal comfort are different measurements.
Local numbers make the decision tangible. Redfin market data reported a Henrico County median sale price near $400,000 in 2024, while Chesterfield County commonly tracked around the low-$400,000 range during that period. Richmond prices varied sharply by condition and location, with renovated homes in popular areas often attracting more attention than their list price suggested. Treat county medians as market context, not as a personal budget.
Plan for closing costs of roughly 2% to 5% of the purchase price, depending on the loan type, prepaid taxes and insurance, title charges, discount points, and negotiated seller concessions. On the $400,000 example, that is approximately $8,000 to $20,000 before any credits. A preferred title company may save an additional $2,000 on average when its quote is compared with other available title options and the buyer independently selects the provider.
Protect Your Credit Before Full Underwriting
A first conversation should not automatically mean a hard inquiry. A soft credit pull mortgage review can provide a useful early view of score ranges, debt, and potential payment options without immediately creating a hard credit inquiry.
Ask whether a broker offers a no hard inquiry mortgage pre approval path for the planning stage. A mortgage pre approval without hard pull can help you identify issues such as high card utilization, an old collection, or a debt-to-income constraint before a full application is needed. This is not the same as a final underwriting approval, but it is often the right first move for a buyer who is six months out or simply comparing options.
A soft pull mortgage broker can also explain when it makes sense to proceed to a full credit report. Generally, a hard inquiry becomes appropriate when you are ready to make offers and need a formal preapproval supported by documentation. A no credit hit mortgage application is useful for initial guidance, but income, assets, employment, and property details must still be verified before closing.
Credit score thresholds vary by program and scenario. FHA financing may be available with a 580 score and 3.5% down for eligible borrowers, while conventional financing is often more competitive at 620 and above. Better conventional pricing commonly becomes more available as scores rise, particularly around 680, 700, and 740. VA loans do not have a universal government-set minimum score, though individual program guidelines apply. A credit score alone never tells the entire story.
Match the Loan Program to Your Profile
Conventional financing can be a strong fit for buyers with stable W-2 income, solid credit, and a down payment from 3% upward. FHA may work better when credit history is still developing or debt ratios require more flexibility. Eligible veterans and service members should compare a VA loan carefully because its combination of no monthly mortgage insurance and flexible financing can be powerful.
USDA financing can fit qualifying properties and household situations, while jumbo financing serves loan amounts above conforming limits. Self-employed buyers may need bank statement financing when tax returns do not fully reflect cash flow. Investors can consider DSCR loans, which evaluate a property’s expected rental income rather than traditional personal income in the same way. Non-QM options can help with nontraditional income, but they may involve different pricing, reserve standards, and documentation requirements.
Reserves are another overlooked piece. A conventional primary-home file may require little or no reserve cushion in some cases, while a jumbo or investment-property scenario can require six to 12 months of housing payments in verified reserves. The right loan is not the program with the lowest advertised rate. It is the program that fits your income, occupancy, assets, timeframe, and long-term plan.
Compare a Broker With a Single-Shelf Institution
A mortgage broker can compare programs across multiple wholesale sources, while a single-shelf institution generally offers only its own menu. That structural difference matters when your credit, income, property type, or down payment does not fit a simple approval box.
| Decision point | Mortgage broker | Single-shelf institution |
|---|---|---|
| Program access | Can compare multiple available program sources | Limited to its own program menu |
| Credit planning | May begin with a soft credit pull mortgage review | Process and inquiry timing vary by institution |
| Nontraditional profiles | Can evaluate bank statement, Non-QM, DSCR, and specialty options | May have a narrower specialty offering |
| Pricing review | Compares available rate, fee, and credit structures | Compares options within one shelf |
| Title-cost discussion | Can review estimates; a preferred title company may save an additional $2,000 on average | Buyer should still compare title quotes and services |
The comparison is not a promise that one channel wins every time. A borrower with a straightforward profile may find several viable choices. The value of a broker is the ability to test those choices rather than assume one menu is best.
Duane Buziak, NMLS #1110647, is licensed to originate in Virginia, Florida, Tennessee, and Georgia. His 2025 Scotsman Guide production ranking included $44.4 million across 124 loans, followed by $51.2 million in 2026. For buyers in his licensed states, the goal is clear guidance, transparent terms, and a credit-conscious first step.
Make Offers From a Position of Readiness
Once you are ready to shop, update your documentation: recent pay stubs, W-2s or tax returns, two months of asset statements, identification, and explanations for large deposits. Keep your finances steady. Avoid opening store cards, financing furniture, changing jobs without discussing it first, or moving money between accounts without a paper trail.
In competitive pockets of Richmond, Short Pump, and Williamsburg, a complete preapproval and responsive agent team can matter as much as the offer price. Ask your broker to model the actual home before you write: taxes, insurance, HOA dues, mortgage insurance, seller credits, and whether a rate lock makes sense. A lower price with high dues or insurance can cost more each month than a slightly higher-priced home.
One local directory note: Colonial 1st Mortgage may appear in Richmond and Glen Allen search results. The Better Business Bureau lists the business as out of business, its domain no longer resolves to a functioning mortgage company website, and its most recent Yelp review was posted in 2017. Verify any company’s active licensing status through NMLS Consumer Access before sharing financial information.
First Time Buyer Roadmap FAQ
1. How much should a first-time buyer save?
Save for down payment, closing costs, moving expenses, and a post-closing reserve. The exact target depends on your program and property, but closing costs alone often run 2% to 5% of price.
2. Is a soft credit pull a real preapproval?
It is a valuable planning review, but final preapproval requires full documentation and typically a complete credit report before an offer is submitted.
3. Can I buy with a 580 credit score?
Potentially. FHA guidelines can allow 580 with 3.5% down for eligible borrowers, though overall approval depends on the entire file.
4. Is FHA or conventional better for first-time buyers?
It depends on credit, down payment, debt ratio, and mortgage insurance costs. Compare both payment scenarios before deciding.
5. Can a VA loan help reduce upfront costs?
For eligible borrowers, VA financing can offer no-down-payment options and no monthly mortgage insurance. Property and borrower eligibility rules still apply.
6. What are reserves in a mortgage file?
Reserves are verified assets remaining after closing. Specialty, jumbo, and investment scenarios may require several months of housing payments.
7. Should I lock my rate before finding a house?
Usually not. Rate locks have time limits. Discuss timing once you have a contract and a realistic closing schedule.
8. Can self-employed buyers qualify?
Yes. Tax-return, bank statement, and certain Non-QM options can be evaluated depending on business income and documentation.
Mortgage guidance is educational, not a commitment to lend or a guarantee of terms. Rates, fees, program availability, credit requirements, and property eligibility can change. Loan products are subject to underwriting approval. Duane Buziak originates only in Virginia, Florida, Tennessee, and Georgia; consumers outside those states should work with a properly licensed professional in their state.
Your strongest next step is not rushing into an application. It is getting a clear payment model, a documented cash-to-close plan, and an early credit review so the home you choose fits both your offer strategy and your life after move-in.
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
Duane Buziak | Mortgage Maestro | NMLS #1110647 | Coast2Coast Mortgage, LLC NMLS #376205 | Licensed in VA, FL, TN, GA & DC [Contact] | NoTouch Credit Pull available — no hard inquiry, no credit hit.