Many people often prepare only for the down payment and overlook closing costs. Closing costs typically range from 2% to 5% of the purchase price, so if you're buying a home in Burke, you need to factor in these costs to avoid gaps in your financial planning.

Looking at the recent market, the average home value in Burke is $742,000 as of June 30, 2026, according to Zillow, showing a 0.5% decrease compared to the previous year. This is similar to nearby Annandale, indicating that Fairfax County as a whole seems to be in a mild adjustment phase.

Based on the $742,000 figure, if we look at the down payment, an FHA loan at 3.5% requires $25,970, while a credit score below 580 requires 10%, which is $74,200. The minimum for a conventional loan at 3% is around $22,260.

Between 5% ($37,100) and 20% ($148,400), the difference is whether PMI applies. If the down payment is less than 20%, PMI will be added monthly, but it disappears once you reach 20%. Additionally, you need to account for closing costs, which range from 2% to 5%, or $14,840 to $37,100, separately.

If you meet the 20% down payment of $148,400 and apply a 6.6% interest rate, the principal and interest would be calculated at around $3,790 per month. Given the recent market trends, it's safer to budget generously for the total cash needed, including closing costs.

The property tax rate for Fairfax County for the 2026 fiscal year is $1.1225 per $100 of assessed value, with an effective tax rate of about 1.01%. If you are moving from another state, it's advisable to compare this figure with the tax rate of your previous residence to recalculate your monthly escrow burden.

To reduce both the down payment and closing costs, it's worth looking into several assistance programs. The Virginia Housing Development Authority's HOMEownership DPA program offers assistance of up to 10% of the purchase price, or 15% in designated areas, plus an additional $2,500 for closing costs. Fairfax County also provides up to $50,000 in down payment loans for households earning 80% or less of the area median income, which can be used to lower the first mortgage principal or cover closing costs.

Utilizing these assistance programs can significantly reduce the total cash needed at closing, so negotiating with the seller to cover part of the closing costs is also an option to consider. However, since each program has different income limits and residency requirements, it's better to organize and compare them with your lender. Recent market trends show an increase in cases where sellers are covering some closing costs during negotiations.

When looking at factors that affect approval rates, credit scores are the most important. As of July 2026, rates vary: 6.59% for scores above 780, 6.66% for the 760s, 6.75% for the 740s, and 6.91% for the 700s. The Consumer Financial Protection Bureau's guidelines suggest that a back-end DTI of 43% or less and a front-end DTI of 28% or less are ideal.

Getting pre-approved in advance and providing stable income documentation through pay stubs and tax returns is a practical approach. Avoid new loans or job changes before closing, and prepare a reserve fund that accounts for closing costs to present a stable profile during the approval process.

Including a spouse as a co-applicant can lower the DTI with combined income, and remember that you can request PMI cancellation once the loan balance falls below 80% of the home value. It's also good to know that self-employed income is often assessed based on an average of two years of tax returns. Planning a reserve fund that includes closing costs can make the entire approval process smoother.

This article is not investment or legal advice, and it is recommended to verify tax rates and assistance program conditions with a professional before finalizing any contracts.