What Are Closing Costs When Buying a Home in Virginia?

One of the most common surprises for first-time buyers is discovering that buying a home costs more than just the down payment. Closing costs in Virginia add a significant amount to the total cash you need at settlement. After helping over 1,000 families buy and sell homes in Hampton Roads, I want to make sure nobody is caught off guard. Here is exactly what closing costs look like in Virginia.

How Much Are Closing Costs in Virginia?

Closing costs in Virginia typically range from 2% to 5% of the purchase price, with the average falling around 3.4%. On a $400,000 home, that means you should expect to pay between $8,000 and $20,000 in closing costs on top of your down payment. This is one of the reasons I always tell buyers looking at homes for sale in Hampton Roads to budget for more than just the down payment when calculating how much cash they will need at closing.

The exact percentage depends on your loan type, your lender, the city or county where you are buying, and what you negotiate with the seller. Some sellers offer to cover a portion of the buyer's closing costs, especially in a market with more inventory. Our buying guide covers how to negotiate seller concessions as part of your offer strategy.

What Is Included in Closing Costs?

Closing costs are not one fee. They are a collection of charges from multiple parties. Here is what you are actually paying for:

• Loan origination fee -- what the lender charges to process your mortgage, typically 0.5% to 1% of the loan amount
• Appraisal fee -- usually $400 to $700, covers the independent valuation of the property
• Home inspection fee -- $400 to $600, paid separately but often considered part of the closing cost picture
• Title insurance -- protects you and the lender against title defects. The lender's policy is required; the owner's policy is optional but strongly recommended
• Title search and settlement fees -- covers the title company's work verifying ownership and handling the closing paperwork
• Recording fees -- the county charges to record the deed and mortgage, usually a few hundred dollars
• Transfer taxes -- Virginia charges a grantor's tax of $0.25 per $100 of the sale price (0.25%), plus local taxes that vary by city
• Prepaid items -- property taxes and homeowners insurance escrowed into an account, plus prepaid interest

Every buyer receives a Closing Disclosure form from their lender at least three business days before closing. That document itemizes every cost so there are no surprises. I always recommend reviewing it carefully and asking questions about anything that looks off.

How VA Loans Affect Closing Costs

For military buyers using a VA loan in Hampton Roads, closing costs work a little differently. The VA limits which fees a veteran can be charged. You cannot be charged a loan origination fee above 1%, and certain junk fees are prohibited. However, VA loans do require a VA funding fee unless you are exempt due to a service-connected disability.

The VA funding fee for first-time use on a purchase is 2.15% of the loan amount for regular military and 2.15% for eligible National Guard and Reserve members. For subsequent uses, it is 3.3%. This fee can be rolled into the loan amount rather than paid upfront. Many military home buyers in Hampton Roads use this option to reduce their out-of-pocket cash at closing. Read more in our full VA loan guide for Hampton Roads.

Who Pays Closing Costs: Buyer or Seller?

In Virginia, both parties pay closing costs, but they pay different ones. The buyer typically pays for the lender fees, appraisal, inspection, title insurance, and recording fees. The seller typically pays the real estate commission (usually 5% to 6% total split between buyer's and seller's agents), the owner's title policy, and the grantor's tax.

That said, nothing is set in stone. Buyer closing costs can be negotiated as a seller concession. In a market like Virginia Beach where homes are selling reasonably well, some sellers will agree to cover $5,000 or more of the buyer's closing costs as part of the offer. This can significantly reduce the cash you need at closing, especially for first-time buyers who have saved for a down payment but need help with the other costs.

Real Estate Agent, Realtor, or Both?

One of the best things about having a real estate agent on your side is that the seller pays the buyer's agent commission. As a buyer, you pay nothing for the representation. That means when you work with a Virginia Beach realtor, the expertise, market knowledge, and negotiation skills come at no direct cost to you. Your realtor helps you navigate closing costs, find the best lender, and negotiate seller credits -- all part of the service.

I am a hometown real estate agent with 24 years of experience in Hampton Roads. I know the lenders, title companies, and inspectors who do the job right. Let me help you put together a clear picture of your total costs before you make an offer.