What will you actually pay at the closing table in Virginia? If you are buying in Norfolk or anywhere in Hampton Roads, the mix of taxes, lender fees, and prepaid items can feel confusing. You want a clear number and a simple plan so you can move forward with confidence. In this guide, you will learn what closing costs include, who typically pays what in Virginia, how much to budget in Norfolk, and how to avoid last‑minute surprises. Let’s dive in.
What closing costs include
Closing costs are the one-time fees and prepaid items you pay to complete your home purchase. They are separate from your down payment. In Virginia, these costs usually include lender charges, title and settlement services, state and local taxes, recording fees, inspections, and prepaid escrows for property taxes and insurance.
Think of it in three buckets:
- Lender and loan costs: application, underwriting, appraisal, and any discount points.
- Title and legal/recording: title search, settlement fee, title insurance, and recording taxes/fees.
- Prepaids and prorations: initial deposits for taxes and insurance, plus prorated items like property taxes and HOA dues.
Your lender’s Loan Estimate and, later, the Closing Disclosure will show exact figures for your loan and property. Use those documents to confirm every line item.
Who pays what in Virginia
Some costs are tied to the buyer’s loan. Buyers usually pay lender fees, the appraisal, the lender’s title policy, and recording fees for the deed of trust. Sellers commonly cover real estate commissions and, in many cases, Virginia’s grantor’s (transfer) tax. Contract terms can shift these costs, so always confirm what you and the seller agree to pay.
In Norfolk and across Hampton Roads, many items are negotiable. You can ask a seller to contribute a set dollar amount or specific fees, such as an owner’s title policy or HOA transfer charges. Local custom can influence who pays, but the purchase contract controls the final answer.
Virginia-specific fees to know
Grantor’s (transfer) tax
Virginia imposes a tax on the transfer of real estate. It is assessed against the grantor, which usually means the seller. Many transactions follow the custom that the seller pays this tax. Your contract can allocate it differently, so check the agreement.
Recordation tax and recording fees
When your deed and mortgage are recorded in the circuit court, state and local recordation taxes and clerk fees apply. Buyers typically pay the recordation tax and fees tied to the deed of trust because that is the buyer’s loan document. The deed itself also carries recording charges that may be paid by either party, depending on your contract.
Prorations and municipal items
Property taxes are usually prorated at closing so each party pays their share based on the closing date. Water, sewer, and other city services can be prorated or transferred according to local procedures and the contract. If the home sits in an HOA or condo, expect an estoppel letter and a transfer fee. Who pays those is negotiable.
Title insurance practice in Virginia
Two title policies exist. The lender’s policy is required by most lenders and is normally a buyer expense. An owner’s policy protects your ownership. Who pays for the owner’s policy varies in Virginia by market and negotiation. In some deals the seller pays; in others the buyer does. Clarify this early in your Norfolk contract.
Inspections and WDO reports
Home inspections are a common buyer expense. In Hampton Roads, wood-destroying organism (termite) inspections are also common due to climate and housing age. Buyers often pay for inspections and then negotiate any repairs based on the contract.
Typical buyer costs and local ranges
Here are common buyer-side line items and typical ranges seen in Norfolk and the broader region. Your actual costs depend on your lender, loan program, purchase price, and contract terms.
- Loan application and origination: often $500 to 1–1.5% of the loan amount. Many conventional loans fall around $1,000 to $4,000.
- Discount points: optional; each point equals 1% of the loan amount in exchange for a lower rate.
- Appraisal: commonly $400 to $900 depending on property type and complexity.
- Credit report, processing, underwriting: roughly $25 to $60 for credit, plus $300 to $900 combined for processing and underwriting.
- Title and settlement fees: title search, exam, settlement agent fee, and lender’s title policy. Settlement fee often $300 to $900. The lender’s title premium scales with the loan amount.
- Owner’s title insurance: optional but recommended. Who pays is negotiable and can vary locally.
- Recording and clerk fees: typically from a few dozen to a few hundred dollars, plus any Virginia recordation tax components.
- Prepaid items and escrows: initial deposits for taxes and insurance. This can amount to several hundred to several thousand dollars depending on timing.
- Homeowner’s insurance binder: usually your first year’s premium or part of it.
- Inspections: home inspection around $300 to $600; WDO/termite about $50 to $150. Repairs are separate and negotiated.
- HOA estoppel and transfer: typically $100 to $500 depending on the association.
- Survey: if needed, roughly $300 to $1,500 based on lot complexity.
- Other small charges: flood certification, courier or wire fees, notary fees, and municipal certificates as applicable.
How much to budget in Norfolk
A practical rule of thumb is to budget about 2% to 5% of the purchase price for buyer closing costs, including prepaid items. Many conventional buyers with larger down payments land closer to 1.5% to 3%, while loans with special requirements or higher escrow deposits may land elsewhere.
Local details matter. HOA fees, inspection needs, and the timing of your closing in relation to tax due dates can change your escrow deposits and your total cash to close. Your lender’s Loan Estimate and final Closing Disclosure will show your exact numbers.
Real-world examples for Norfolk buyers
These examples show how costs can stack up. Totals are buyer-side only and exclude the down payment.
Example A: First-time buyer, $300,000 purchase, 5% down
- Loan amount: $285,000
- Estimated buyer closing costs: about $6,000 to $10,000 (roughly 2.0% to 3.3%)
- Appraisal: $500
- Credit/processing/underwriting: $600
- Lender origination or points: $1,500
- Lender’s title insurance and settlement: $1,200
- Recording and miscellaneous: $200
- Prepaid insurance and initial escrow deposits: $1,800
- Inspections: $500
- HOA or survey if applicable: $200
If your seller pays for an owner’s title policy or covers certain transfer costs, your out-of-pocket can drop.
Example B: Move-up buyer, $450,000 purchase, 20% down
- Loan amount: $360,000
- Estimated buyer closing costs: about $6,500 to $13,500 (roughly 1.4% to 3.0%)
- Larger loan amounts can increase some title premiums.
- Escrow deposits may be higher if you close close to tax billing dates.
Example C: VA loan, $350,000 purchase, 0% down
- Loan amount: $350,000
- Estimated buyer closing costs: about $4,500 to $9,500
- VA appraisal may cost more than a standard appraisal.
- A VA funding fee usually applies and can be financed. Check current VA guidance with your lender.
- Prepaid escrows and standard lender and title costs still apply.
Smart steps to avoid surprises
- Compare disclosures: Request the Loan Estimate within three business days of application and review it line by line. Before closing, compare it to your Closing Disclosure, which you should receive at least three business days before signing.
- Clarify who pays: Ask early about the grantor’s tax, owner’s title policy, and HOA transfer fees. Confirm in your contract who pays for each.
- Verify local recording charges: Norfolk’s circuit court and clerk fees can change. The settlement agent will confirm current amounts.
- Plan for escrows: Your initial tax and insurance deposits can vary based on when you close. Ask your lender how the calendar affects your cash to close.
- Confirm inspections: In Hampton Roads, plan for home and WDO inspections and discuss how repairs will be negotiated.
- Follow safe funding practices: Only use wire instructions provided by your settlement agent and verify them by phone to prevent wire fraud.
Timing and the Closing Disclosure
Your Closing Disclosure lists every fee and credit in the transaction and must be delivered to you at least three business days before closing for most financed purchases. Use that time to review amounts, confirm any seller credits, and ask questions about line items you do not recognize. The settlement agent and your lender can explain each charge and update the document if something changes before closing.
Work with a local guide
Closing costs in Virginia are manageable when you know what to expect and how to plan. With clear contract terms, a careful review of your Loan Estimate and Closing Disclosure, and a team that understands Norfolk norms, you can avoid last-minute stress and close with confidence.
If you want a straightforward plan for your purchase, reach out to Conner and Company Real Estate. Our Norfolk-based team pairs boutique, one-on-one guidance with full transaction support so you stay informed from offer to keys.
FAQs
What are typical buyer closing costs in Norfolk, Virginia?
- Most buyers should budget roughly 2% to 5% of the purchase price for closing costs and prepaids, with exact amounts shown on your Loan Estimate and Closing Disclosure.
Who usually pays Virginia’s transfer (grantor’s) tax?
- The grantor’s tax is assessed against the seller by statute, and many contracts follow that custom, but you should check your purchase agreement because terms are negotiable.
What recording taxes and fees does a buyer pay in Virginia?
- Buyers typically pay the recordation tax and fees for the deed of trust tied to their mortgage; recording charges for the deed can be allocated by the contract.
How do property tax prorations work at closing in Norfolk?
- Taxes are prorated so the seller pays up to the closing date and you pay from that date forward; exact calculations depend on local billing cycles and whether taxes are current.
Is an owner’s title insurance policy required in Virginia?
- A lender’s policy is usually required for financed loans; an owner’s policy is optional but recommended, and who pays for it varies by local custom and negotiation.
Can I ask the seller to cover some of my closing costs?
- Yes. You can negotiate seller credits or ask the seller to pay specific items, such as an owner’s title policy or HOA transfer fees, subject to loan program rules and the purchase contract.
