Closing Cost Overview

UnderstandingVA Home Loan Closing Costs

When you’re ready to secure a VA home loan for your home purchase in Texas, 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:

Closing Cost TypeDescriptionExample Range/Cost
Loan Origination Fee, Underwriting and Processing FeesFees charged by the lender to process your loan.Can range between 0 – 1% typically.
Appraisal FeeThe cost for a VA-certified appraiser to value the home.$425 – $800
Title FeesFees for title search and ensuring clear property title.Varies; may include several hundred dollars
Title InsuranceInsurance 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 FeeFee for pulling your credit history.$150 – $250
Discount PointsOptional fee to lower your interest rate. 1 point is typically 1% of the loan amount
Recording FeesFees charged by the county to record public land records.$20 – $250
Prepaid InterestThe interest that accrues on the mortgage before the first payment is due.Varies by loan amount and date of closing
Homeowners Insurance PremiumThe prepaid cost of your first year’s homeowners insurance.Varies by home value and location
Tax and Insurance Escrow ReservesInitial deposit for the escrow account for taxes and insurance.Varies by tax rate and insurance premium
VA Funding FeeFee 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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