What Do Buyers Pay at Closing in Virginia?

Your down payment gets most of the attention, but closing costs are the second big check you write when you buy a home. Knowing them early helps you set a realistic budget, compare lenders and negotiate with confidence.

What’s included in a buyer’s closing costs

Recordation taxes

Virginia charges a tax to record your deed and your loan with the county or city. The state rate is 0.25% of the amount recorded, and localities add about one third of the state tax. Because both the deed and the loan are recorded, this is often the largest single closing cost for buyers.

Title insurance and settlement fees

Your lender requires a lender’s title policy. An owner’s title policy is optional in Virginia, but it protects you if a problem with the title turns up after you buy. You’ll also see a settlement fee, title search, processing and recording service charges from the title company.

Lender fees

Origination, underwriting, appraisal and credit report fees vary by lender. Your Loan Estimate lists them, which makes it easy to compare offers side by side.

Prepaids and escrow

At closing you typically prepay interest from your closing date to the end of that month, pay your first year of homeowners insurance, and fund an escrow account with a few months of property taxes and insurance.

A worked example

Here’s an estimate for a $750,000 home with 20% down and a 6.5% rate, using a Virginia title company’s published fee schedule:

• Down payment: $150,000
• Title and settlement fees: about $5,250
• Recording fees and recordation taxes: about $4,600
• Lender fees: about $1,800 (varies by lender)
• Prepaid interest, insurance and escrow: about $5,200
• Total closing costs: about $16,900, or roughly 2.3% of the price
• Estimated cash to close: about $166,900

Your numbers will differ based on your loan, closing date, lender and the property. Try different scenarios with the closing cost estimator.

Ways to lower what you bring to closing

• Ask for a seller credit toward closing costs as part of your offer, within your loan’s limits.
• Compare Loan Estimates from two or three lenders.
• Close later in the month to reduce prepaid interest.
• Check Virginia Housing and local down payment assistance programs if you qualify.

Frequently asked questions

Do sellers pay any closing costs in Virginia?

Yes. Sellers typically pay the grantor tax, their own settlement fees, any agreed commissions and their loan payoff. The Sales Net Sheet shows a seller’s side in detail.

Is owner’s title insurance worth it?

It’s optional, but it’s a one-time cost that protects your ownership for as long as you own the home. Most buyers choose it.

When will I know my exact closing costs?

Your lender must send your Closing Disclosure at least three business days before closing. It lists your final numbers.