Having a solid understanding of the total amount of VA loan closing costs and non-loan related costs is an important figure to consider when buying a home.
Just as any mortgage loan does, VA loans come with certain closing costs — fees you’ll owe on closing day to the seller, your mortgage lender, the title company, and other parties involved in your transaction.
Fortunately, when it comes to closing costs, VA loans tend to be more affordable than other mortgage options — and in many cases, VA buyers can ask the seller to cover a large share of them.
Closing costs are a collection of fees charged to a loan borrower. They go toward the costs of processing, underwriting, and issuing your mortgage loan, as well as things like appraising your property, recording your deed with the county, performing a title search, having an attorney review any legal documents, and many other tasks associated with your transaction. Local taxes are also included in closing costs.
Every borrower’s closing costs are different. They vary widely based on the loan amount, where you’re located, which lender you use, and many other factors.
Whatever your closing costs come to, they’ll be due on closing day — when you sign your final loan papers. They’re usually paid using a cashier’s check or wire transfer.
A number of fees fall under the closing cost umbrella, and while each one will vary based on your unique loan scenario, there are some general averages you can look to in order to estimate yours.
Here’s a look at these VA loan fees:
For an accurate breakdown of what your VA closing costs will look like, it’s important to review the loan estimate given to you by your mortgage lender. This will detail all the estimated costs you can expect, as well as how much cash you’ll need to bring to closing.
You will also pay closing costs for non-loan related items — homeowners’ insurance premiums, county recording fees, HOA dues, and more. These vary based on your property, location, and various other factors.
Here are some examples of non-loan closing fees you may owe:
In some cases, your real estate agent’s commission may be included in your closing costs, but these are generally paid for by the seller and are not included in the VA loan fees for buyers. Talk to your agent if you’re not sure how they get paid (or by whom).