The Virginia Home-Buying Process: Your Step-by-Step Checklist

Virginia operates under a caveat-emptor (buyer beware) framework established by the Virginia Residential Property Disclosure Act. The seller provides a standard Disclosure Statement — available from DPOR — which explicitly says the seller makes no representations about the property's physical condition. This is not a defect list; it is a notice that the burden of investigation falls on you. Read it carefully, but know that your inspection contingency is your main protection. Under Va. Code §55.1-702, you have certain termination rights if required disclosures are not delivered properly.

Cost: $0

Your agent will draft the offer using the Virginia REALTORS Standard Purchase Agreement, the dominant residential contract form used across the state. Key terms to negotiate: purchase price, earnest money amount, contingencies (financing, inspection, appraisal), closing date, and what personal property conveys. The offer must also address how your buyer's agent will be compensated — either through a seller concession directed to your agent, a fee you pay directly, or another agreed path. Once the seller signs without changes, the contract is ratified.

Cost: $0

Earnest money shows the seller you are serious. The Virginia REALTORS Purchase Agreement typically calls for deposit within one to three business days of ratification. Once your agent or their broker receives the funds, they must deposit it into a trust account within five business days of ratification under 18 VAC 135-20-180. Make out your check or wire to the listing broker's escrow account or the settlement agent's escrow — never to an individual agent. The deposit will apply toward your closing costs or down payment at closing.

Cost: Typically 1%-3% of purchase price

After the NAR settlement took effect August 17, 2024, sellers can no longer post blanket compensation offers on the MLS. Instead, your agent's fee must be negotiated as part of your offer. Common paths include: asking the seller for a concession equal to your agent's fee, paying your agent directly from your funds, or a combination. Your buyer brokerage agreement already states the amount your agent seeks; this step makes sure the purchase contract reflects a payment method everyone agrees on. Under Va. Code §54.1-2132, the source of your agent's compensation must be disclosed in writing.

Cost: $0

The moment your contract is ratified, contact your lender. They need a copy of the signed contract to open your loan file and begin the formal underwriting process. Your financing contingency deadline starts running from ratification, so delays at this stage can cost you. Ask your lender right away what additional documents they will need and when they expect to issue a formal Loan Estimate.

Cost: $0

If the home is subject to a property owners' association (HOA), the seller must deliver a disclosure packet to you that includes the declaration, bylaws, budget, reserve study, and any pending enforcement actions. Under Virginia's Property Owners' Association Act (Va. Code §55.1-1800 et seq.), you have three days after receiving the complete packet to cancel the contract for any reason and receive your earnest money back. Do not waive this right without reading the documents — HOA fees and rules can significantly affect your cost of ownership.

Cost: $0 (packet fee paid by seller)

For condominium purchases, the seller must obtain and deliver a resale certificate from the condo association under Va. Code §55.1-1973. The packet includes the declaration, bylaws, budget, reserve study, and notice of any pending litigation or unpaid assessments. You have three days after receiving the complete certificate to cancel the contract for any reason with full earnest money returned. Pay close attention to the reserve fund balance — a poorly funded reserve can mean large special assessments in your future.

Cost: $0 (packet fee paid by seller)

Virginia's Consumer Real Estate Settlement Protection Act (CRESPA), Va. Code §55.1-1000 et seq., requires that closings on Virginia residential property be conducted by a licensed settlement agent — typically a title company attorney or a title insurance company licensed in Virginia. Unlike many states, Virginia does not use independent escrow companies; your closing will be run by an attorney or a CRESPA-licensed title agent. Ask your agent for referrals, shop fees, and confirm the firm is properly licensed before signing anything.

Cost: $0 (you are choosing, not paying yet)

Contact a licensed home inspector and get on their calendar within a day or two of ratification — good inspectors book up fast. Bring your inspection contingency deadline to the conversation so you know how much time you have to negotiate any repairs. Plan to attend the inspection yourself so you can ask questions in real time. The inspection report is your main tool for uncovering physical defects before you are legally obligated to close.

Cost: $350-600 typical

A thorough home inspection covers the roof, foundation, electrical, plumbing, HVAC, attic, and major appliances. Plan for two to four hours depending on the home's size. Walk through the home with the inspector so they can explain findings in plain language rather than just writing them in a report you receive days later. Take your own notes and photos. Virginia operates under a caveat-emptor framework, so this inspection is one of your primary safeguards — the seller is not required to disclose most physical conditions proactively.

Cost: $350-600 typical

Your general inspector may flag areas that need expert follow-up: a structural engineer for foundation cracks, a licensed electrician for older wiring, or a chimney sweep for fireplaces. If the property has a private well or septic system — common in rural Virginia, the Northern Neck, and outer suburbs — order a well water test and a septic inspection. Under Va. Code §55.1-700 et seq., sellers of properties with onsite sewage systems must disclose known issues, but a firsthand inspection protects you far better than relying on disclosures alone.

Cost: $100-500 per specialty inspection

Virginia law under Va. Code §55.1-703(B) requires a seller who has actual knowledge of defective drywall (imported Chinese-manufactured drywall that corrodes copper wiring and HVAC components) to disclose it. Affected homes were built primarily between 2004 and 2008, concentrated in Hampton Roads, Richmond suburbs, and Northern Virginia markets that saw heavy construction during that period. If the home falls in this era, ask your inspector to look for signs of sulfur odor, corroded copper pipes, and failing HVAC components — then review the seller's disclosure carefully.

Cost: $0 (ask your inspector, no separate fee typical)

Once you have the inspection report, decide what matters most. You can ask the seller to fix specific items before closing, request a credit at closing so you can manage repairs yourself, or seek a price reduction. Most Virginia buyers focus on health-and-safety items, structural defects, and major system failures rather than cosmetic issues. Your agent will submit a written repair addendum using a form consistent with the Virginia REALTORS Purchase Agreement. If the seller refuses and the findings are serious, your inspection contingency lets you terminate and recover your earnest money.

Cost: $0

If you have not already done so, submit your complete mortgage application now. This is different from pre-approval — it is the full underwriting submission. Your lender is required by federal law to send you a Loan Estimate within three business days. Review it closely: compare the interest rate, APR, monthly payment, closing costs, and any prepayment penalties to what you were quoted. Lock your interest rate with your lender if you are comfortable with current rates — locking protects you from rate increases while you wait to close.

Cost: $300-500 (application and credit check fees vary by lender)

Your lender will order an independent appraisal of the property — typically within a week of your loan application. The appraiser visits the home and compares it to recent nearby sales to produce a value opinion. If the appraisal comes in at or above your purchase price, the process moves forward. If it comes in low, you have options: negotiate a price reduction with the seller, pay the difference in cash (an appraisal gap), or terminate under your appraisal contingency if your contract includes one. Ask your lender how long the appraisal typically takes in your county.

Cost: $500-800 typical

Underwriters often ask for additional documentation: a letter explaining a gap in employment, proof of where a large bank deposit came from, or updated pay stubs if your closing date is weeks out. These requests arrive through your loan officer and have short turnaround windows. Slow responses delay closing and can cause you to miss your contract date. During underwriting, do not open new credit accounts, buy a car, or make large purchases — any change to your debt or credit profile can jeopardize final loan approval.

Cost: $0

When the underwriter has reviewed everything and the loan is approved without any remaining conditions, your lender issues a Clear to Close (CTC). This is the green light that tells all parties you are ready for the final steps. Once you receive CTC, your settlement agent can schedule the closing date and prepare the final Closing Disclosure, which your lender must deliver to you at least three business days before closing. Review the Closing Disclosure line by line and compare it to your original Loan Estimate.

Cost: $0

Federal law requires your lender to deliver the Closing Disclosure at least three business days before closing. This document shows every cost: loan fees, prepaid interest, homeowner's insurance, property taxes in escrow, title fees, and settlement agent fees. Compare each line to your original Loan Estimate and ask your lender or settlement agent to explain any fee that increased or appeared for the first time. Virginia buyers pay the state recordation tax on deeds at $0.25 per $100 of the purchase price under Va. Code §58.1-801, plus any applicable local recordation tax — confirm these figures match your Closing Disclosure.

Cost: $0

Your Closing Disclosure will show the exact amount you owe at closing — down payment plus closing costs minus any seller credits. Virginia settlement agents require certified funds: a cashier's check made out to the settlement company, or a wire transfer that arrives before the closing appointment. Personal checks and credit cards are not accepted for closing funds. Wire fraud targeting real estate closings is common — always confirm wire instructions by calling your settlement agent directly at a phone number you find independently, not one from an email.

Cost: Varies — your total closing costs plus down payment

Your lender will require proof of a homeowners insurance policy that names them as an additional insured and takes effect on or before the closing date. Shop at least three insurers. In Virginia, factors that affect your premium include proximity to water (flood insurance is separate and may be required if the home is in a FEMA flood zone), age of the roof, and claims history. Ask the seller if they have had any homeowners claims — insurers check the CLUE database. Deliver the insurance binder or declaration page to your lender and settlement agent well before closing.

Cost: $800-2,500/year typical in Virginia (varies widely by location and coverage)

Schedule a final walkthrough within 24 hours of closing. The purpose is to confirm the property is in the agreed-upon condition: any negotiated repairs have been completed, all items that were supposed to convey are still in the home, and no new damage has occurred since the inspection. Run every appliance, flush every toilet, test every light switch, and open every door and window. If something is wrong, contact your agent immediately — issues discovered during the walkthrough can sometimes be resolved with a closing credit rather than delaying the transaction.

Cost: $0

Virginia closings must be conducted by a licensed settlement agent under the Consumer Real Estate Settlement Protection Act (CRESPA), Va. Code §55.1-1000 et seq. — typically an attorney at a title company or law firm. You will sign a large stack of documents: the promissory note (your promise to repay the loan), the deed of trust (the lender's security interest in the property), the ALTA settlement statement, and various disclosure forms. Read each document before signing and ask the settlement agent to explain anything you do not understand. Bring a government-issued photo ID.

Cost: $0 (fees already accounted for in closing costs)

Your lender requires a lender's title insurance policy protecting their interest in the property. You should also purchase an owner's title insurance policy for yourself — it is a one-time premium paid at closing that protects you against prior liens, fraud, errors in public records, or other title defects discovered after you take ownership. In Virginia, title insurance rates are filed with the State Corporation Commission and are relatively consistent across companies. The settlement agent handles the title search and issues both policies at closing.

Cost: $500-1,500 typical for owner's policy (based on purchase price)

After all documents are signed and funds are disbursed, the settlement agent submits the deed to the county or city clerk's office for recording in Virginia's land records. Recording is what legally transfers title to your name. In some Virginia localities this happens same-day electronically; in others it may take a business day or two. You will not receive the actual deed in the mail for weeks — but you are the owner the moment the deed is accepted for recording. Ask your settlement agent when they expect confirmation.

Cost: $0 (recording fee already paid as part of closing costs)

Once recording is confirmed, the listing side releases the keys. Change the locks or re-key the home right away — you do not know how many copies of the old keys exist. Transfer utilities into your name if you have not already done so. File your homestead exemption with the local commissioner of revenue to reduce your property tax assessment on your primary residence. Set a reminder to file your Virginia income tax return claiming the mortgage interest deduction and property taxes you will pay going forward. Store your closing package — including the Closing Disclosure and title insurance policies — in a secure location.

Cost: $50-200 for re-keying locks