A VA home loan is a government mortgage loan that is available to those who are or have served in the U.S. military. Generally speaking, you may qualify for a VA loan if you are an active-duty service member, an eligible veteran or a surviving spouse. While many fees and rates are reduced for VA home loans, these loans are still subjected to closing costs.
This guide will tell you everything you need to know about VA home loan closing costs.
What VA Loan Closing Costs Cover
The closing costs associated with your VA loan cover the cost of services provided to you by the lender. These costs incorporate a wide range of fees, some of which include:
- The fee for your home’s VA appraisal
- Title insurance and taxes
- The VA funding fees
- Lender’s origination fee
Closing costs will vary based on the transaction, so it’s best to work with an experienced mortgage lender to determine an estimate for your closing costs.
How Closing Costs for VA Loans are Calculated
Your lender will calculate the closing costs for your home purchase, and the total cost will depend on the type of fees that you have to pay and the amount of money that you are putting down on your home. The benefits of utilizing a VA loan include the 100% down payment option. You can expect closing costs to be about 3 to 4 percent of the total loan value.
Tips for Reducing Your VA Home Loan Closings Costs
Some of the best ways to minimize your closing costs include:
- Increasing the down payment on your home. While a down payment is not required, it can help offset the VA funding fees.
- Asking sell to pay for a portion or all of the closing costs as part of your purchase agreement. VA loans allow for seller contributions towards the buyer’s closing costs of up to 4.0% of the sales price.
Managing Your VA Closings Costs with a Qualified Military Realtor
It’s important to keep in mind that the buyer isn’t always solely responsible for closing costs. In real estate transactions, the buyers and sellers each have their own closing costs. An experienced Twin Cities MN military veteran realtor such as Shannon Lindstrom with RE/MAX Results will be able to negotiate on your behalf and ensure that you pay minimal closing costs.
Per request, Shannon can provide you with a mortgage resource list of mortgage lenders that specialize in VA home loans.
Contact Shannon Lindstrom today to find out how buying a home in Twin Cities & MN can be a seamless process for any active duty or retired military member. Thank you for your service!
Shannon Lindstrom, Realtor®, AHWD, CRS, GREEN, MILRES, MRP, VCA
RE/MAX Results
Direct: 612-616-9714
[email protected]
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www.ShannonLindstromRealtor.com
www.ShannonLindstrom.info
www.MinnesotaMilitaryVeteranRealEstateAgent.com
