You are about to get the keys to your Norfolk home, then you see a long list of fees on your closing statement. It is normal to feel unsure about what everything means. The good news is you can plan for these costs, ask smart questions, and even reduce what you bring to the table. In this guide, you will learn what buyer closing costs cover in Virginia, how they are calculated in Norfolk, what is negotiable, and the exact steps to get clear numbers early. Let’s dive in.
What buyer closing costs cover
Buyer closing costs are the one-time charges and prepaid items you pay to finalize your loan and property transfer. A common rule of thumb is to budget about 2% to 5% of the purchase price for closing costs. Your actual amount varies by loan type, down payment, property taxes, insurance, and local fees.
You will see two types of charges:
- Closing costs that pay for services, like the appraisal, title work, recording, and lender fees.
- Prepaids and escrow reserves for ongoing costs, like property tax and homeowners insurance, that your lender collects upfront.
Your legal timeline: Loan Estimate and Closing Disclosure
Federal rules give you a clear view of costs before you sign. After you apply for a mortgage, your lender must provide a Loan Estimate within three business days. It outlines your projected interest rate, payment, and itemized closing costs. You can learn what the Loan Estimate includes from the CFPB’s Loan Estimate guide.
At least three business days before closing, your lender must give you a Closing Disclosure that shows your final numbers. Compare it to your Loan Estimate and ask about any changes. The CFPB’s Closing Disclosure explainer shows what to check and your rights to review.
Common buyer costs in Norfolk
Below are the most common line items you may see in Hampton Roads. Amounts can vary, so use these as general expectations and confirm with your lender and settlement agent.
Lender fees and appraisal
- Origination or processing: Fee for underwriting and processing your loan, often 0.5% to 1% of the loan amount or a flat fee.
- Discount points: Optional fee to reduce your interest rate. One point equals 1% of the loan amount.
- Appraisal: Independent valuation required by the lender. Typical range is $300 to $700 for a single-family home, depending on property type and market.
- Credit report: Small fee, often $25 to $50.
- Rate lock or underwriting: Some lenders itemize these separately. Combined underwriting and processing have historically ranged $400 to $1,200.
- Mortgage insurance: If your down payment is low, you may pay an up-front premium at closing for FHA or the first month of PMI.
Title and settlement
- Title search/exam: Checks public records to confirm clear ownership and find liens.
- Title insurance: Lender’s policy is required by the lender. Owner’s title policy is optional but protects your equity. Pricing follows state rate tables based on price and loan amount.
- Settlement/closing fee: Paid to the title company or settlement attorney for handling the closing and documents.
- Recording fees: City or county charges to record the deed and deed of trust.
Government taxes and transfer charges
- State recordation tax and grantor’s tax: Virginia assesses taxes when recording real estate documents. Exact rates and allocations depend on state rules and local practice. See the Virginia Department of Taxation pages for the recordation tax and the grantor’s tax. Your settlement agent will apply the current amounts based on your contract.
Prepaids and escrow reserves
- Prepaid interest: Covers interest from the closing date to the end of that month.
- Property taxes: Collected into an escrow account, often two to six months depending on timing and lender guidelines. You will also reimburse the seller for any pro-rated taxes.
- Homeowners insurance: Typically, the first year’s premium is due at or before closing. Lenders often collect two to three months for escrow.
- HOA or condo fees: Pro-rated dues and any transfer or move-in fees may apply.
Inspections and related costs
- General home inspection: Strongly recommended, typically $300 to $600 based on size and complexity.
- Specialty inspections: Radon, pest, sewer scope, mold, or septic if needed.
Other possible fees
- Survey: If required by your lender or desired for boundary clarity.
- Flood certification: Small fee to determine flood zone status.
- Attorney: Virginia does not require an attorney to close, though some buyers or title companies use attorneys for conveyancing.
- Courier, wire, or overnight fees: Small transactional costs.
Virginia and Norfolk specifics
- Who pays what: In Virginia, who pays each fee is guided by local custom and your purchase agreement. In many Hampton Roads deals, sellers may agree to cover certain items or provide a credit, but it is not guaranteed. Do not assume a seller will pay for any line item without a written term in your contract.
- Local fees and taxes: State recordation and grantor’s taxes apply, and local clerk or recording charges may also be collected. These amounts are set by state and local authorities and change infrequently.
- Property tax proration: Norfolk property taxes are prorated at closing. You will reimburse the seller for the portion of the billing period they already paid, based on the closing date. Confirm the exact dates and method with your settlement agent.
- Get exact figures early: Ask your Norfolk title company for a sample, property-specific closing estimate as soon as you go under contract. They will reflect the most current state and local fees and your contract terms.
Illustrative example (for context only)
Let’s assume a purchase price of $350,000 with 5% down using a conventional loan. Using the 2% to 5% guideline, you might budget $7,000 to $17,500 for closing costs. This includes both service fees and prepaids.
Here is a simplified, illustrative breakdown:
- Lender fees and appraisal: $1,000 to $3,500
- Title and settlement, including lender’s title policy and recording: $1,200 to $3,000
- Prepaids and escrow reserves: $2,000 to $6,000
- Inspections and optional services: $300 to $1,000
Depending on your selections and any negotiated seller credits, your funds due at closing could fall in a wide band. The final numbers will appear on your Loan Estimate and later on your Closing Disclosure.
Ways to manage or reduce costs
- Shop lenders. Fees and rates vary. Ask for a written Loan Estimate and compare the itemized costs and APR. Some lenders offer lender credits that reduce closing costs in exchange for a slightly higher rate.
- Request seller credits. You can negotiate a seller credit toward your costs, often paired with a price that works for both parties.
- Choose wisely on points. Paying discount points can lower your rate, but it increases your upfront costs. Look at your break-even time.
- Review title options. You can shop for some services. Ask your lender which fees you can choose from their approved list.
- Close near month-end. This can reduce prepaid interest, though it may not change other items like taxes and insurance.
Your closing cost checklist
Use this list to get clear, early numbers and avoid surprises.
Ask your lender
- “Please provide a Loan Estimate that shows origination, third-party fees, points, and estimated prepaids and escrows.”
- “Which fees are refundable if my loan does not close?”
- “Which services can I shop for, and which providers are required?”
- “How many months of taxes and insurance will you collect into escrow at closing?”
Ask your title or settlement agent
- “Please provide an itemized estimate of title, recording fees, state recordation and grantor’s taxes, and any local charges for this Norfolk property.”
- “Who typically pays the owner’s title policy here, and what would it cost if I choose to buy it?”
- “What will the pro-rated property tax and HOA or condo dues be at closing?”
Prepare documents and funds
- Earnest money per your contract terms
- Government-issued photo ID
- Proof of homeowners insurance binder
- Verified wire instructions or a cashier’s check, as directed
- Time to review your Closing Disclosure at least three business days before signing
Helpful tools and calculators
Get local, step-by-step guidance
Closing costs do not have to be confusing. With clear estimates, smart questions, and local insight, you can go to closing day confident and prepared. If you want a Norfolk-specific breakdown and help negotiating the best outcome, our specialist team is here to guide you from first consult to keys in hand. Connect with Missy L’Hoste & Team for a friendly walkthrough of your numbers and a plan tailored to your goals.
FAQs
How much are buyer closing costs in Norfolk, Virginia?
- A common estimate is 2% to 5% of the purchase price. Your actual number depends on your loan, rate choice, escrow setup, and state and local fees that your settlement agent will calculate.
What is the difference between closing costs and prepaids?
- Closing costs pay for services such as lender fees, appraisal, title, and recording. Prepaids and escrows are funds collected for ongoing costs like taxes, insurance, and prepaid interest.
Will the seller pay some of my closing costs in Virginia?
- It is negotiable and varies by market conditions and contract terms. Do not assume the seller will pay any item unless the offer includes a written credit or specific fee allocation.
When will I see my final closing numbers?
- Your lender must provide a Closing Disclosure at least three business days before closing. Compare it to your earlier Loan Estimate and ask about any differences.
Do I need a lawyer to close on a home in Virginia?
- Virginia does not require an attorney to close. Many transactions are handled by title companies, though some buyers or title firms involve attorneys for conveyancing.
