It is steeped in American history, packed with natural beauty, and has some of the country’s lowest crime and unemployment rates – it is no wonder why you are planning a move to Virginia. But if you are on the verge of buying a home in Virginia, just make sure you are saving up not just for a down payment, but for closing costs, too.
Closing costs are an umbrella term, encompassing all the administrative and legal services you will need to pay before you receive the keys to your new home. Think of the fees you are billed throughout the homebuying journey, from applying for a mortgage to getting the property inspected and appraised. Various taxes and insurance premiums can be included in the closing costs tab. Typically, these fees are grouped together and paid in a single lump sum. All in, closing costs typically amount to 2 to 5 percent of the home’s purchase price, paid alongside your down payment. Yes, it will be one expensive day for your bank account!
If you are buying property in Virginia, NewHomeSource has put together the following guide to help you determine how much you should be saving for closing costs, state-specific rules, and how you can potentially lower these costs.
How Much Are Closing Costs in Virginia?
Closing costs in Virginia run, on average, $3,461 for a home loan of $379,083, according to the National Association of Realtors. Including taxes, that price tag makes up 1.7 percent of the home’s price tag.
Virginia is in the middle of the pack. Closing costs are far cheaper in Virginia compared to neighboring regions: In D.C., closing costs are a whopping $6,502, in Pennsylvania, closing costs are $4,221, and in Maryland, they average $4,459.
But homebuyers in the Old Dominion should expect to spend far more than these estimates. This data excluded two major closing cost expenses, loan origination fees and private mortgage insurance or PMI, which homebuyers must purchase if their down payment is less than 20 percent. Both expenses can add thousands to closing costs.
Home values also have risen, driving up closing costs. As of February 2025, the median price single-family home price was $403,500, up 4.9 percent from the year before, according to the Virginia Association of Realtors.
Keep in mind, though, that closing costs will fluctuate greatly depending on a handful of factors, such as the price and location of the home, your down payment, credit score, and type of mortgage.
What Is Typically Included in Virginia’s Closing Costs?
With so many moving parts, the easiest way to understand your closing costs tab is to categorize your expenses into three columns: Property-related fees, like a title search and home inspection; mortgage-related fees, such as setting up your loan and securing private mortgage insurance; and annual fees, including your home insurance premiums and property taxes.
Here is a closer look at the breakdown for homebuyers in Virginia, including the state-specific details:
Mortgage-Related Fees
The following are the closing cost fees you will incur for securing a mortgage, including the protocol for hiring an attorney:
Loan Origination Fees
Getting a mortgage does not come free. Unless you have the cold hard cash to buy your home outright, the first expense rolled into your closing costs will be loan origination fees.
They are what your lender charges to open a mortgage account. It includes everything from setting up your home loan application, conducting an underwrite and pre-approval, and processing your funding at closing. These fees make up one of the largest portions of your closing costs at roughly 0.5 to 1 percent of your loan.
Credit Report Fees
Whenever you apply for credit, whether it is a credit card, personal loan, or mortgage, your lender will need to do a thorough credit check to make sure you are a responsible borrower. A key component of the credit check is pulling your credit score to have an in-depth look at how you are managing your existing debts.
Your lender will bill you for the full cost of requesting your credit report. If there is more than one name on the loan application, double this expense.
Private Mortgage Insurance
If you are not providing a 20 percent down payment, your lender will expect you to buy private mortgage insurance. This allows borrowers to qualify for a conventional loan even if they put down only five to 19.99 percent. While you are paying for the insurance, the coverage is for your lender in case of default.
PMI typically ranges from 0.25 to 2.25 percent of your loan. Once you hit the 20 percent mark in home equity, you do not have to pay PMI.
Attorney Fees
In Virginia, a real estate attorney registered with the Virginia State Bar or licensed real estate settlement agent must be present at closing to represent your legal interests.
With an attorney or closing agent on your side, they can help draft your purchase agreement, certify deeds, and review your home insurance and title insurance policies. They are especially valuable in complicated home sales, such as if the property you are buying is in foreclosure or out of state.
Real estate attorneys will also do the heavy lifting and review your title abstract and verify that you have a clear title. They will also point out any red flags that you need to discuss with your seller before proceeding.
Property-Related Fees
Before your lender transfers the funds for your loan, your potential new home will need to clear a handful of pivotal checkpoints. Common property-related fees include:
Title Search and Title Insurance
During the closing process, your attorney or title company will order a title search. A title examination involves scanning historical records like deeds, court records, and property and name indexes to confirm the seller’s right to transfer ownership to you. The goal is to make sure there are no outstanding ownership disputes, unpaid taxes, judgments, or lawsuits in process, so you can own the land free and clear once it is transferred.
You will also need to cover your bases with title insurance policies for both you and your lender. Title insurance protects both parties in case something is overlooked during the title search and there are “title defects” or claims to your property.
In Virginia, it is customary for the buyer to pick up the tab for the title insurance premiums. While most insurance policies are paid annually, title insurance is paid just once at closing, and it cannot be transferred over to the next buyer.
Property Appraisal and Home Inspection
There are two main checkpoints your lender will require your property to clear before they process your loan: the appraisal and the home inspection. In both instances, your lender needs to verify that they are lending you a large sum of cash for a solid, worthy investment.
To start, your lender will send a third-party appraiser to scope out your potential buy and make sure it is priced at the right value. If you default on your mortgage and your lender must foreclose on your home, they will want assurance that they can sell the property and recoup their costs.
The appraiser will scan the home’s size, features, condition, and how it stacks up to homes priced similarly in the community, to determine its fair market value.
Because your lender gets to choose the appraiser, consult with them on price points.
Once you are in the clear with this step, you will need to recruit an inspector who will focus on the nuts and bolts of your home. They will scan everything from the foundation to the roof to the appliances, HVAC system and plumbing and share any concerns.
Pay close attention to what your inspector says: they could flag key issues that already exist or may surface in the coming years. With this intel, you could ask your seller to knock down the price point or make repairs before finalizing the deal.
You will also foot the bill for the inspector’s work.
Real Estate Transfer Tax
The real estate transfer tax, also called a deed tax, mortgage registry or stamp tax, is a typical charge each time property switches hands. Virginia has a handful of transfer taxes homebuyers must be aware of because they can add up to a hefty sum. For starters, there is the state grantor tax that charges $1 for every $1,000 in property value being sold, then there is the state transfer tax of about $0.25 for every $100 in property value, and a state deed recording fee of $20.
There are also local county and city transfer taxes, they are typically one-third of the cost of state taxes. You may come across a small fee at the county level for record-keeping and documenting the transfer of property, too.
Annual Fees
From managing your mortgage to staying on top of utility bills, homeownership is all about being mindful of recurring expenses. Your closing costs will incorporate a handful of fees that you will need to start paying annually:
Property Taxes
In Virginia, homeowners pay about 0.72 percent of their home’s assessed market value in property taxes, according to the Tax Foundation. Because property taxes are collected on a county level, the precise percentage will vary. You can check on your county’s tax rate on the state’s Tax Department website.
Property taxes are a prepaid expense, meaning the first six months to a year must be paid at closing and cannot be rolled into your home financing. After that, the onus is on you to keep up with property tax due dates in your county.
Homeowner’s Insurance
From clearing an appraisal, title examination and credit check, your lender has a lengthy list of requirements you’ll need to fulfill before they transfer funds. Another purchase you will need to make is for homeowner’s insurance, you must have your insurance policy in effect and paid for the upcoming year at closing.
It is an essential buy for your peace of mind, too. Homeowner’s insurance covers any physical damage to your home caused by fire, wind, vandalism, or theft.
Do your homework on extra insurance policies you will need to tack on, especially if you are keeping heirlooms, expensive jewelry or artwork in the home.
How Can I Lower my Closing Costs in Virginia?
Because closing costs may come as an afterthought to some homebuyers, you may be facing some stick shock. Do not fret, though, there are a handful of ways homebuyers can lower their overall closing costs. Here is a look at key strategies that could save you thousands:
Closing Cost Assistance
Take advantage of Virginia’s homeownership assistance programs as it could put a significant dent in your closing costs.
The Virginia Housing Development Authority has a roster of programs to help first-time and repeat homebuyers alike via fixed-interest rate loans with the lowest available mortgage insurance payments. These programs also come with options like second mortgages, down payment assistance programs, and grants to help with closing costs.
Get Your Finances in Shape
Your mortgage is a debt you will be repaying for decades, so the interest rate you secure is pivotal. Improving your credit score so you can show lenders you are a responsible borrower could help you snag a lower interest rate, saving you thousands over the lifetime of your loan.
And the closer you get to the 20 percent down payment threshold, the less you will have to cough up in PMI.
Comparison Shop
Take your time to comparison shop and obtain quotes from different providers, whether you are shopping for the best interest rate or for a qualified title company or real estate attorney.
Check out referrals from your lender, real estate agent, or title company, too. They could have go-to professionals on hand that they have approved with discounts for referrals.
Negotiate Lender Fees
If you have a longstanding, established relationship with your lender, you may have some wiggle room with your loan setup fees.
You could ask your lender to omit certain expenses from your bill, such as rate lock fees, loan processing fees or broker rebates. If that does not work, you could also ask to stagger these expenses so they are paid in stages instead of at closing.
Seller Concessions
There may be more room for negotiation on who pays for what when you’re dealing with your seller, especially if they are trying to close the deal and you are in a buyer’s market.
Buyers can ask sellers to pay for some – or all – of their closing costs. You may submit a full price offer with a caveat that your seller covers all your closing costs, for example. Or you could ask your builder to pay your closing costs so you can, in turn, buy upgrades on a brand-new model home.
In a nutshell, there are a handful of different ways that you could reassign some of the closing costs to your seller.
No-Closing-Cost Mortgages
With a “no-closing-cost” mortgage, your lender agrees to pay for part or all closing costs, but you must pay a higher interest rate.
Be careful with this option: It could cost you more money overall because of the bump in your interest rate.
Add Closing Costs to Your Home Financing
Aside from the prepaid expenses that must be paid at closing, you could opt to roll your closing costs into your home loan. This could add thousands to your mortgage. You will not have to pay for closing costs on closing day, but your monthly mortgage payments will be a bit higher.
Carmen Chai
Carmen Chai is an award-winning Canadian journalist who has lived and reported from major cities such as Vancouver, Toronto, London and Paris. For NewHomeSource, Carmen covers a variety of topics, including insurance, mortgages, and more.