What is a VA Loan Closing Cost and How Can It Help Me?
Learn about one of the many perks of using your VA Home Loan Benefit
What is a VA Loan Closing Cost?
Did you know, VA loan closing costs are one of the many advantages of using your VA home loan benefit to buy or refinance your home? So, what is a VA loan closing cost? Closing costs are different expenses and fees paid as part of finalizing your loan. Some closing costs you may see are:
- the loan origination fee
- the appraisal fee
- the title charge
- discount points
- the cost to pull your credit report
VA Loan Closing Costs in a Purchase Loan
One of the greatest benefits of a VA Purchase loan is that sellers can pay ALL of your closing costs related to the loan. You can also negotiate for the seller to pay up to 4% of the purchase price in seller concessions. This can cover prepaid expenses like property taxes and homeowner’s insurance.
VA Loan Closing Costs in a Cash Out Loan
An extra perk of using your VA home loan benefit to refinance your home is that there are several closing costs that can’t be charged to the veteran. This allows you to walk away from closing with more cash in hand. These prohibited costs include:
- attorney fees
- brokerage fees
- prepayment penalties
As a veteran, you should expect to pay a VA funding fee to keep this valuable VA service running. Take advantage of your valuable VA home loan benefit, and reduce the amount of costs you pay at closing! Learn more about this and other rewards of a VA Loan Benefit here.