How Much Cash Do I Need to Buy My First Home in Franklin or Suffolk
You have worked hard to get established in your career. Now you are starting to picture a place of your own: a kitchen you can make yours, room for the things you enjoy, and a home that feels like the next chapter.
Then comes the question that can stop the dreaming: How much money do I actually need saved?
There is no single savings number that fits every first-time buyer in Franklin or Suffolk. Your goal should cover the down payment, the expenses of completing the purchase, and money left for life after moving day. A lender can help turn those categories into a personal savings target.
You may have options below 20 percent down
A 20 percent down payment is not required for every mortgage. Some loan options begin at 3 percent down, while others require more. Eligibility and loan costs vary, so ask a lender to compare the choices available to you. The Consumer Financial Protection Bureau explains how down payments affect loan options and costs.
Having enough for the minimum down payment is one piece of the decision. You also need a monthly payment that works with your student loans, transportation, savings goals, and everyday expenses.
When I coach new teachers, I get to watch people grow into their careers and begin imagining what comes next. I want the homebuying conversation to leave room for that excitement while helping you understand the numbers.
Budget for closing costs too
Closing costs are separate from your down payment. The CFPB suggests a rough planning range of 2 to 5 percent of the purchase price, with actual costs depending on the property, lender, and loan. See the CFPB planning guidance.
Here is an illustration using a $250,000 home and a hypothetical loan requiring 3 percent down:
Illustrative costs for a $250,000 home
Down payment at 3 percent: $7,500
Closing costs at 2 to 5 percent: $5,000 to $12,500
Combined planning estimate: $12,500 to $20,000
This example is not a quote, a local average price, or a promise of loan approval. It excludes moving expenses and the savings you keep afterward. Approved assistance or negotiated credits may reduce your contribution; your lender must confirm what is allowed.
Ask for a written estimate that explains lender and settlement charges, prepaid expenses, and any initial escrow deposits for taxes and insurance. Have the lender identify what is included so you do not count the same expense twice.
Understand when the money is due
Your savings plan also needs a timeline. Ask these questions before making an offer:
How much earnest money will the contract require, and when is it due?
What inspections or other services will I pay for before closing?
Which amounts already paid will appear as credits in my closing figures?
How much will I still need to bring to settlement?
Have your agent explain how the contract handles the earnest money deposit, including the conditions for its return. Have your lender and settlement provider reconcile deposits and charges paid ahead of time with the final amount due.
Check assistance before signing a contract
Virginia Housing offers homebuyer education and information about loans and assistance. Ask a participating lender which current programs fit your income, loan, and intended property.
For a home within Suffolk, the Suffolk Redevelopment and Housing Authority HOME program has income, education, buyer-contribution, and property requirements. Its published rules require an eligibility notice before entering a ratified sales contract. Assistance also carries occupancy and repayment conditions, so review the terms and confirm funding availability directly with the program.
Start that conversation early. Do not build an offer around assistance you have not been approved to receive.
Keep money for the home and your everyday life
Before deciding how much cash to put toward the purchase, allow for moving, utility setup, and an emergency cushion. The CFPB recommends setting aside money for these needs.
For each Franklin or Suffolk property you consider, ask for estimates tied to that address. Review taxes, insurance, any association fees, and the home's condition. Ask whether flood insurance is required and what coverage will cost. Two homes with the same asking price can lead to different budgets.
A useful question to bring to your lender is: “What would I need upfront, what would I pay each month, and how much would I have left in savings?”
Start with a conversation and a clear plan
You do not need to arrive with every answer. We can talk about your timeline, the kind of home you hope for, and the questions to take to a lender. If buying is farther down the road, that conversation can help you choose your next savings goal.
Request my free First-Time Home Buyer's Guide for a step-by-step introduction to the process.
You can also call or text 757-404-2478 to discuss your questions. We can begin wherever you are comfortable.
Kelly Reider, REALTOR®
Hometown Realty, LLC (VA) | eXp Realty (NC & MD)
Comments