# VIRGINIA CLOSING COSTS: A FIRST-TIME HOMEBUYER GUIDE

By Scott Brookshire (@scottbrookshire) · Published 2026-10-22

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Buying your first home in Virginia comes with a bill most people forget to plan for: closing costs. In the Commonwealth, they typically run an estimated **2% to 5% of the purchase price** — on a $400,000 home, that means roughly **$8,000 to $20,000** on top of your down payment. These are general estimates, not guarantees; your exact figure depends on your loan and your locality. Still, Virginia's tax structure is specific enough that you can get a solid estimate before you ever make an offer.

The catch is that Virginia is different from most states. The state leans on recordation and grantor taxes that can add thousands to your tab, and whether you or the seller pays them depends on local custom as much as the law. I'll walk you through what to expect so the closing table holds fewer surprises.

#### Key Takeaways

-   Virginia closing costs typically run 2% to 5% of the purchase price, on top of your down payment.
-   The state's recordation and grantor taxes are the biggest line item and vary by county.
-   Buyers in Virginia usually pay the bulk of closing costs, but seller concessions can shift that.
-   A lender's Loan Estimate provides an itemized estimate of closing costs, which may change before closing.

## What exactly are closing costs in Virginia?

Closing costs are the fees and expenses you pay to finalize a mortgage and transfer the deed — everything beyond the down payment itself. They fall into two buckets: **lender fees** like loan origination and appraisal, and **third-party fees** for title work, settlement, and the state and local taxes Virginia collects on the transaction.

On average nationwide, closing costs run **2% to 5% of the purchase price**, according to [CrossCountry Mortgage's guide to who pays closing costs](https://crosscountrymortgage.com/mortgage/resources/who-pays-closing-costs). In Virginia, the state's transfer taxes tend to push buyers toward the upper end of that band, so it pays to know exactly which fees your county and the Commonwealth will charge.

![homebuyer signing closing documents](https://convex.voce.com/api/storage/e6a30621-869b-4025-a9e3-78b407040698)

A few items look like closing costs but aren't. A home inspection, for example, is an optional add-on you schedule yourself rather than a fee the lender requires — so it usually sits outside your closing statement. Keep it in your budget, just not in the closing-cost column.

## What makes Virginia closing costs unique?

Virginia charges **transfer taxes on the deed itself** — costs that don't exist in the same form in most other states. When you record the deed and the deed of trust with the circuit court clerk, you pay both a **grantor tax** and a **recordation tax**, and the exact amounts depend on where you buy.

The grantor tax runs **50 cents per $500** of the sale price, which works out to **0.10%**, not the 0.50% some guides quote ([City of Alexandria](https://www.alexandriava.gov/real-estate/recordation-tax)). In Northern Virginia, an additional grantor tax of **$0.10 per $100** applies ([City of Alexandria](https://www.alexandriava.gov/real-estate/recordation-tax)). The tax is paid by the grantor (typically the seller), though the parties can arrange for the buyer to pay all or part of it ([Virginia Code, Ch. 8](https://law.lis.virginia.gov/vacodefull/title58.1/chapter8)).

The recordation tax is what secures your mortgage. It's charged on the deed of trust — the document that records the loan against the property — at **25 cents per $100** of the loan amount ([Virginia Code, Ch. 8](https://law.lis.virginia.gov/vacodefull/title58.1/chapter8)). Most counties also add a **local recordation fee equal to one-third** of the state amount, plus any locality-specific charges ([City of Alexandria](https://www.alexandriava.gov/real-estate/recordation-tax)).

## Who pays the taxes — buyer or seller?

In Virginia, who writes the check for each tax usually follows a familiar pattern: the **grantor tax is paid by the seller** (they're the grantor on the deed), while the **recordation tax on the deed of trust falls to the buyer**, since the buyer is the one taking out the loan. But that split isn't carved in stone.

Local custom and negotiation matter just as much as the law. In many Virginia counties, a seller may offer to cover the grantor tax, or a buyer in a competitive market may agree to pay more of the closing expenses to strengthen their offer. The key point: the split of closing costs is set in the purchase agreement, and seller contributions are limited by what that contract allows and, for financed purchases, by loan program limits. Once the contract is signed, the split is largely locked in. If you want the seller to cover some of your closing costs, the time to ask is while the offer is still on the table.

![modern Virginia suburban home](https://images.unsplash.com/photo-1629777161042-4edc28f957ca?crop=entropy&cs=tinysrgb&fit=crop&fm=jpg&ixid=M3w5Mzk0NDN8MHwxfHNlYXJjaHw0fHxWaXJnaW5pYSUyMHN1YnVyYmFuJTIwbmVpZ2hib3Job29kJTIwaG9tZXN8ZW58MHwwfHx8MTc5MjE4MTk1NHww&ixlib=rb-4.1.0&q=80&w=1200&h=630)

## What's in the buyer's closing cost line item?

Beyond the taxes, a Virginia buyer's closing statement typically lists the same categories you'd see anywhere, plus a few Commonwealth-specific ones. Here's the breakdown you should expect on your Loan Estimate.

Fee

What it covers

Typical driver

Loan origination fee

The lender's charge to process and underwrite the loan

Varies by lender

Appraisal fee

Independent estimate of the home's value for the lender

Based on the home and the appraiser the lender selects

Title search and insurance

Verifies clean ownership and insures the lender's interest

Title insurance based on the loan amount

Settlement or attorney fee

Reviews documents and coordinates the closing in Virginia

Often a flat fee

Recordation tax

Secures the deed of trust with the circuit court

25 cents per $100 of the loan, plus local fees

Prorated property taxes

Your share of property taxes already paid for the year

Prorated from closing date

Your lender is required to give you a **Loan Estimate within three business days** of your application — a standardized form that itemizes every closing cost and **estimates** what you'll pay at the table. The figures are estimates, not guaranteed or final amounts; your actual costs can change based on your loan terms and timing. Read it line by line, and compare it against the Closing Disclosure you receive later.

## How can first-time homebuyers reduce their closing costs in Virginia?

Virginia doesn't let you skip the taxes, but you can shrink the rest of the bill in a few practical ways. The smartest move is to **ask for seller concessions** before you sign the purchase agreement — in many markets, a seller will cover a portion of your closing costs in exchange for a cleaner, faster deal.

Down payment assistance can help, but it's not universally available. Programs like Virginia Housing's homebuyer options and CrossCountry Mortgage's Smart Start each have their own eligibility requirements. For example, **CCM Smart Start** covers up to **$5,250** toward the down payment for eligible first-time homebuyers whose income is at or below 80% of their county's Area Median Income, with at least one occupying borrower a first-time homebuyer ([CrossCountry Mortgage](https://crosscountrymortgage.com/mortgage/loans/down-payment-assistance/ccm-smart-start)). It provides down payment help, not a guarantee of reduced closing costs, and approval depends on your loan program and eligibility. Government-backed loans — FHA and VA — have their own requirements, and VA loans carry a funding fee. Your loan officer can help you compare what fits your situation.

## Questions first-time homebuyers in Virginia ask about closing costs

These are the questions I hear most often from Virginia buyers planning their first closing. The answers go a step beyond the guide above.

### Do closing costs include the down payment?

No. The down payment is your equity going into the home, paid on top of closing costs. You'll typically need to fund both at closing, which is why many first-time homebuyers plan for the two together.

### Can I roll closing costs into my mortgage?

Sometimes — but it's not available through every loan program. Whether you can fold certain fees into your loan amount depends on your lender, your loan program, and how the home appraises. It's worth asking your loan officer, because rolling costs in increases your loan balance and monthly payment.

### When do I get the exact number?

Your lender issues a **Loan Estimate within three business days** of your application, then a **Closing Disclosure that borrowers must generally receive at least three business days before closing**. Both documents give you estimated costs, not final guaranteed amounts — so compare the two closely, and question any fee that changed without explanation.

## The takeaway

Virginia's closing costs are easier to anticipate than many buyers expect, once you account for the Commonwealth's recordation and grantor taxes. On a typical purchase, plan for an estimated **2% to 5% of the price**, know that the recordation tax on the deed of trust typically falls to the buyer, and remember that seller contributions and fee splits depend on your purchase agreement and loan program.

A good first step is getting a **pre-approval**, which gives you an estimate of the loan amount you may qualify for — not a guaranteed figure — and a preliminary view of what closing could cost. The more you know before you make an offer, the fewer surprises you'll meet at the closing table.

#### Contact me with questions.

Get a personalized estimate of your Virginia closing costs from a local loan officer.

[Contact me](/@scottbrookshire)

**Scott Brookshire** – Regional VP, Branch Manager | NMLS #198834 – CrossCountry Mortgage, LLC

CrossCountry Mortgage, LLC is an FHA Approved Lending Institution and is not acting on behalf of or at the direction of HUD/FHA or the Federal government.

CrossCountry Mortgage, LLC is not affiliated with or acting on behalf of or at the direction of the Veteran Affairs Office. Certificate of Eligibility required for VA loans.

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