What are Closing Costs?
Understanding the fees and expenses involved in buying a home
What You Need to Know
Closing costs are the fees and expenses you pay when finalizing your home purchase. In Northern Virginia, buyers typically pay between 2-5% of the purchase price in closing costs. On a $750,000 home, that's $15,000 to $37,500.
These costs are in addition to your down payment and cover services like loan processing, title insurance, and government fees.
Typical Buyer Closing Costs
Lender Fees
- Loan Origination Fee0.5-1% of loan
- Discount Points (optional)0-2% of loan
- Application Fee$300-500
- Credit Report$25-50
Title & Settlement
- Title Search$200-400
- Lender's Title Insurance$500-1,500
- Settlement/Closing Fee$500-1,000
- Attorney Fee (if required)$500-1,500
Government Fees
- Recording Fees$50-150
- Transfer TaxesVaries by locality
- Deed Preparation$100-200
Prepaid Items
- Property Taxes (prorated)2-6 months
- Homeowners Insurance1 year upfront
- Prepaid InterestPer diem to month end
- HOA Fees (if applicable)Varies
Inspections & Appraisal
- Home Inspection$400-600
- Appraisal$500-750
- Radon Test$150-200
- Termite Inspection$75-150
Escrow Account Setup
- Tax Escrow Reserve2-3 months
- Insurance Escrow Reserve2-3 months
- PMI Escrow (if applicable)2 months
Ways to Reduce Closing Costs
Negotiate Seller Credits
Ask the seller to contribute toward your closing costs as part of the negotiation.
Shop Around for Services
Compare fees from different lenders, title companies, and insurance providers.
Ask About Lender Credits
Some lenders offer credits in exchange for a slightly higher interest rate.
Close at End of Month
Closing later in the month reduces the prepaid interest you'll owe.
Get a Personalized Estimate
I'll help you understand exactly what closing costs to expect for your specific situation.