The down payment is only part of the cash needed to buy a Richmond-area home. Plan for three separate amounts: money paid before closing, the balance due at settlement, and the savings you want available after the move. Keeping those amounts separate prevents both a shortfall and double counting.
Start with your budget, then replace estimates with the lender's disclosures, settlement figures and actual quotes as the purchase develops. The useful question is not simply “What percentage should I save?” It is “What will I owe, when must I pay it, and what will remain afterward?”
Put early payments on the calendar
An earnest-money deposit, inspection and appraisal may require money before settlement. Ask when each payment is due, who receives it and where it will appear in the final accounting. Keep receipts rather than relying on a bank balance to reconstruct the amounts later.
An earnest-money deposit credited toward the purchase is not an extra charge on top of the full down payment. Similarly, if you pay an appraisal fee early and it is included in the closing-cost total, it should not become a second payment at closing. A separate inspection invoice may sit outside the mortgage closing calculation, but it still uses your money.
For every expected payment, record its amount or current estimate, due date, whether it has been paid, and whether it is already included elsewhere. That small distinction is more useful than adding every number on every document together.
Understand the balance due at closing
The lender's cash-to-close calculation brings together the down payment, closing costs, deposits, applicable credits and other adjustments. Use the CFPB's Loan Estimate explainer to locate those amounts and ask the lender about anything that differs from your plan.
Review the individual costs as well as the total. Loan charges, title and settlement services, recording charges, insurance premiums, prepaid interest and initial escrow funding serve different purposes. Prepaid expenses and escrow funding are not all lender fees; they may represent money set aside for ownership costs.
Get an insurance quote for the actual address and check the tax assumptions. A Richmond mailing address is not enough information for a transaction-specific closing estimate. Identify the property's actual locality with your settlement professional, and ask which taxes, recording charges and prorations apply.
The Virginia court system's deed calculator distinguishes the court, instrument type, transaction values and other inputs. It is a reference for recording-related fees and taxes, not a complete buyer closing-cost quote. Have the settlement professional calculate the relevant instruments and explain your share under the transaction documents; do not apply one generic recording percentage to every charge.
A worked example without counting the deposit twice
The following figures are hypothetical, not estimates of Richmond prices, fees or a lender's required down payment. Assume a $500,000 purchase with a $100,000 down payment and no financed closing costs. The $14,000 closing-cost total includes a $700 appraisal already paid. Also assume a permitted $3,000 seller credit, a $10,000 deposit credited at settlement, and no other adjustments.
| Closing calculation | Amount |
|---|---|
| Down payment | $100,000 |
| Closing costs, including the prepaid appraisal | + $14,000 |
| Approved seller credit | − $3,000 |
| Deposit already paid | − $10,000 |
| Appraisal already paid and included above | − $700 |
| Remaining cash due at closing | $100,300 |
Suppose you also paid $650 for an inspection that is not included in the $14,000 closing-cost total. Before closing, you have paid $11,350: the $10,000 deposit, $700 appraisal and $650 inspection.
Add that $11,350 to the remaining $100,300 due at closing. Total transaction cash is $111,650, including the down payment. The amount beyond the $100,000 down payment is therefore $11,650.
Now add a hypothetical $4,000 moving budget and $20,000 you want to retain. Your full cash plan is $135,650. The retained $20,000 is not a closing fee or money you intend to spend at settlement; it is a separate cushion. Replacing any assumption changes the result.
This example also shows why a seller credit and a price reduction are not interchangeable for budgeting. If the assumed $3,000 credit disappears with everything else unchanged, the balance due at closing rises by $3,000. Do not subtract a proposed credit until your lender and settlement professional confirm that it is allowed and correctly reflected.
Choose your remaining savings deliberately
Think beyond the moving truck. Will the home need an immediate repair, basic furnishings, utility setup or maintenance equipment? Which costs can wait, and which would affect your ability to live in the home? Keep quotes for identified work separate from a general allowance for surprises.
Consider your ongoing obligations and income variability when deciding what to retain. Your preferred cushion and any lender-required reserves are different questions; ask the lender about its requirement, then decide whether that amount is enough for your own situation. The CFPB's mortgage-preparation guide encourages reviewing your finances and spending before setting the home budget.
If the numbers are uncomfortable, discuss the purchase price, down-payment choice and loan options before committing. Compare the effect on monthly payments and total borrowing cost as well as the upfront cash. Spending less at closing is not automatically a less expensive loan.
Reconcile the final figures before sending funds
Keep the latest Loan Estimate, not just the first one. For most covered mortgages, you must receive the Closing Disclosure at least three business days before closing. Compare the two documents and ask about changes while there is time to resolve them. The CFPB's pre-closing review guidance explains that different fees have different rules for changes; an early estimate is not a promise that every line will remain fixed.
Check the deposit, paid appraisal, approved credits and other adjustments against your receipts and agreement. Ask the settlement professional for the final amount, the approved payment method and the funding deadline. The CFPB also warns about criminals impersonating transaction professionals with changed wiring instructions. Verify any change through a trusted, independently established contact method before sending money.
If a sale of your current home will fund the purchase, include the availability of those proceeds in this review. Expected equity is not the same as funds ready for settlement; our buying-and-selling coordination guide explains that timing problem.
Bring a usable budget to your home search
You do not need every final invoice before looking at homes. You do need a price range that leaves room for the transaction and life afterward. Start with clearly labeled estimates and update them when the address, loan and inspection findings are known.
Talk with Michela Worthington and The OwnRVA Group about planning your Richmond purchase. Bring your comfortable budget, moving priorities and lender questions so the search reflects more than the down payment alone.