VA Closing Costs are very reasonable, and the VA has put some safeguards in place to make sure Veterans are protected from predatory lenders.
Here are some of the VA Closing Costs you may encounter:
Points: Points are not uncommon with VA Closing Costs. Lenders are allowed to charge up to one point in order to cover lender-related fees involved with the processing of your mortgage. Veterans are not allowed to pay fees such as underwriting, processing, tax service fee, or broker fees.
Discount Points: Discount points may be charged to help you obtain a lower interest rate. Talk to us about your options if you are interested in buying down your rate.
VA Appraisal Fee: VA dictates that the appraisal fee must be paid at closing and goes directly to the appraiser. VA appraisals typically run $425.
VA Funding Fee: If you are a disabled Veteran, you are exempt from the VA Funding Fee, otherwise, you will be subject to this fee. The VA Funding Fee is typically financed into the loan meaning it is added to your initial loan balance and you will not have to come to closing with this fee. Our VA Funding Fee page goes into more detail about the funding fee.
Title/Escrow: Title, attorney, and escrow fees vary by state. Call us for a quote in your area.
Transfer/ Real Estate Taxes: Varies by state.
Escrow Account: Your new lender will collect some taxes and insurance money to establish your new escrow account. We can help you determine what this amount will likely be.
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