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What are closing costs?

That’s a very good question! VA closing costs pay everyone and everything needed to successfully buy a home, including:

These costs should be paid by the seller (sometimes called “seller’s concessions”):

  • Commission for your real estate agent
  • Brokerage fee
  • Buyer broker fee
  • Termite report (unless it’s a refi)

These costs are paid by you (the buyer!) or you can try to negotiate with your seller to pay them:

  • VA funding fee
  • Loan origination fee
  • Loan discount points (just ask us for the skinny on this!)
  • Credit report (is free) but you might need to pay any credit balances or judgments
  • VA appraisal fee (your house must pass the VA appraisal for you to get your VA loan)
  • Hazard insurance and real estate taxes
  • State and local taxes
  • Title insurance
  • Recording fee

Note from the VA: The seller can’t pay more than 4% of the total home loan in seller’s concessions. But this rule only covers some closing costs, including the VA funding fee – not loan discount points.