Closing Cost Overview
UnderstandingVA Home Loan Closing Costs
When you’re ready to secure a VA home loan in Texas for your home purchase, it’s essential to familiarize yourself with the potential closing costs you will encounter. These are fees and expenses that you will need to pay at the end of the real estate transaction when the property’s title transfers from the seller to you, the buyer.
Here is a breakdown of typical closing costs you might encounter with a VA loan in Texas:
| Closing Cost Type | Description | Example Range/Cost |
| Loan Origination Fee, Underwriting and Processing Fees | Fees charged by the lender to process your loan. | Can range between 0 – 1% typically. |
| Appraisal Fee | The cost for a VA-certified appraiser to value the home. | $425 – $800 |
| Title Fees | Fees for title search and ensuring clear property title. | Varies; may include several hundred dollars |
| Title Insurance | Insurance that protects you and the lender from title issues. | Based on the loan amount; can be around 0.5% to 1% of the purchase price |
| Credit Report Fee | Fee for pulling your credit history. | $150 – $250 |
| Discount Points | Optional fee to lower your interest rate. | 1 point is typically 1% of the loan amount |
| Recording Fees | Fees charged by the county to record public land records. | $20 – $250 |
| Prepaid Interest | The interest that accrues on the mortgage before the first payment is due. | Varies by loan amount and date of closing |
| Homeowners Insurance Premium | The prepaid cost of your first year’s homeowners insurance. | Varies by home value and location |
| Tax and Insurance Escrow Reserves | Initial deposit for the escrow account for taxes and insurance. | Varies by tax rate and insurance premium |
| VA Funding Fee | Fee that goes directly to the VA to fund the loan program. | Typically 0.5% – 3.6% of the loan amount; may be waived for certain disabilities |
How Shirley Can Help
Shirley Mueller can guide you through understanding these costs in the context of your specific loan scenario. As a veteran or service member, you’ll benefit from her expertise in providing rate quote comparisons, helping to negotiate seller credits, and clarifying how each cost applies to your transaction.
Shirley’s approach is to ensure you have a transparent view of what to expect financially as you close on your VA loan. With her assistance, you’ll be prepared for every cost and credit, understanding how they fit into your home purchase journey in Texas.
This page provides a general overview, but for the most accurate and detailed picture of your potential closing costs, it’s advisable to speak directly with Shirley Mueller. She can offer personalized advice tailored to your unique situation, ensuring that there are no surprises and that you are taking full advantage of the benefits of your VA loan.
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