Buying or selling in 23451 and not sure what you’ll owe at the closing table? You’re not alone. Closing costs can feel murky, especially if you’re relocating or buying a second home near the oceanfront. This guide breaks down what those fees cover, who typically pays what in Virginia Beach, how much to budget, and the timelines that protect you. You’ll also get a simple checklist to estimate your exact numbers with confidence. Let’s dive in.
What closing costs include
Closing costs are the one-time fees and prepayments you settle at closing. They cover services that get your deal across the finish line and put the deed in your name, free of title issues. Common categories include:
- Lender fees and points
- Third-party services the lender requires (appraisal, credit report)
- Title search, title insurance, and settlement or closing fees
- Recording fees and any state or local recordation taxes
- Prepaid items and escrow deposits (property taxes and insurance)
- Prorations and association-related fees
- For sellers: commissions, title policy for the new owner if customary, and any mortgage or lien payoffs
Who typically pays what in Virginia Beach
Local custom gives you a helpful starting point, but most items are negotiable. Your purchase agreement decides the final split.
Buyer-paid items (typical)
- Loan-related charges: origination, underwriting, and processing fees
- Appraisal and credit report
- Lender’s title insurance policy
- Title search and many settlement/closing agent fees
- Recording of the mortgage
- Prepaids and escrows for taxes and homeowner’s insurance
Seller-paid items (typical)
- Real estate commission agreed in the listing agreement
- Owner’s title insurance policy in many Virginia transactions, though this is negotiable
- Deed preparation and recording of lien releases
- Prorated property taxes and association dues
- Payoff of existing mortgage(s), liens, or judgments
How much to budget
Actual amounts depend on your price point, loan terms, title company fees, and what you negotiate. As general planning guidance:
- Buyers often budget about 2% to 5% of the purchase price for closing costs, excluding your down payment.
- Sellers often budget about 6% to 10% of the sale price, which includes negotiated commissions and other seller-side items.
Illustrative only: a quick example
- Purchase price: $400,000
- Buyer costs at roughly 2.5%: about $10,000
- Seller costs at roughly 8%: about $32,000 (for example, a 6% commission plus title and standard closing items)
These figures are illustrative only. Your final numbers will reflect your specific loan, title quotes, commissions, prorations, and any state or local recording taxes.
Your timelines and protections
Federal rules give you clear visibility into costs before you close. According to the Consumer Financial Protection Bureau, your lender must provide:
- A Loan Estimate within three business days of your completed mortgage application, outlining projected loan terms and closing costs. You can learn more about the Loan Estimate on the CFPB’s page for what a Loan Estimate is.
- A Closing Disclosure at least three business days before closing, showing your final terms and itemized closing costs. You can review the CFPB’s explanation of what a Closing Disclosure is.
Use these documents to compare lender offers, confirm fees, and ask questions before you sign.
Title insurance in Virginia
You will see two different title insurance policies at closing:
- Lender’s title policy: protects the lender’s interest. Typically a buyer expense.
- Owner’s title policy: protects your ownership. In many Virginia transactions, sellers pay for this as part of the deal, but it is negotiable.
In Virginia, title insurance carriers and practices are subject to state oversight. The owner’s policy is a one-time premium paid at closing. For general guidance on title insurance in Virginia, review the Virginia State Corporation Commission’s Bureau of Insurance page for Title Insurance.
Recording fees and taxes in Virginia Beach
You will pay to record documents, such as the deed and the deed of trust, with the Virginia Beach Circuit Court Clerk. Fees vary by document type and page count, and they change from time to time. To confirm current charges and procedures, visit the Virginia Beach Circuit Court Clerk for land records and recording information.
Virginia also imposes recordation and related taxes on certain real estate transactions. Guidance is available from the Virginia Department of Taxation’s recordation tax page. Your title company will calculate any taxes and fees based on your deal.
Common buyer closing cost items
Most financed purchases include some or all of the following. Amounts below reflect typical ranges and are not quotes.
- Lender fees: origination, underwriting, or processing. Origination can range from 0% to about 1.5% of the loan amount, or be a flat fee.
- Discount points: optional fee to lower your interest rate, equal to 1% of the loan amount per point.
- Appraisal: often $400 to $1,000+ depending on size and complexity.
- Credit report and verification: typically $25 to $75 combined.
- Title search and closing fee: commonly several hundred dollars.
- Lender’s title insurance: varies with loan amount, often several hundred to over $1,000.
- Recording: modest per-document fees. Your title company will itemize exact charges.
- Prepaids and escrows: initial deposits for property taxes and homeowner’s insurance, often 2 to 6 months depending on your lender’s requirements.
- Homeowners insurance premium: often the first year due at or before closing.
Common seller closing cost items
Sellers typically cover:
- Real estate commission: negotiated in your listing agreement; commissions are a major portion of seller costs.
- Owner’s title policy: often a seller expense in Virginia, but negotiable.
- Title and settlement fees: varies by company and how fees are split.
- Deed preparation and lien release recording fees.
- Prorations: property taxes and association dues through the closing date.
- Mortgage payoff(s), lien or judgment payoffs to deliver clear title.
Prepaids, escrows, and prorations
Beyond fees, you will see time-based charges that are not “extra costs,” but rather amounts paid in advance or allocated fairly between parties.
- Prepaids and escrows: Buyers often prepay homeowner’s insurance and deposit several months of property taxes and insurance into an escrow account if required by the lender.
- Interest: Buyers may pay daily interest from closing to the first mortgage payment date.
- Prorations: Taxes and association dues are typically split between buyer and seller based on the closing date.
Simple steps to get a precise estimate
If you’re buying in 23451
- Apply for your mortgage and review the Loan Estimate you receive within three business days.
- Request a written title quote and title commitment from a local title company. Ask for itemized premiums for lender’s and owner’s policies and the settlement fee.
- Review your Closing Disclosure at least three business days before closing and confirm all fees.
- Ask the title company to confirm current recording fees with the Virginia Beach Circuit Court Clerk and estimate your tax and HOA prorations.
If you’re selling in 23451
- Ask your listing agent for a seller net sheet based on your expected price and negotiated commission.
- Request payoff statements for any mortgages or liens and ask the title company for an owner’s policy quote and estimated closing fees.
- Confirm whether the contract asks you to cover any buyer fees or shared settlement charges.
Tips to keep costs sensible
- Compare lenders. Use the Loan Estimate to evaluate rates, points, and fees side by side.
- Ask about credits. Some lenders offer a lender credit in exchange for a slightly higher rate. Weigh the trade-offs.
- Shop title services. You can request quotes from more than one local title company.
- Negotiate concessions. Depending on market conditions, you may negotiate for the other party to cover certain fees or a general credit at closing.
- Mind your closing date. Timing can affect prepaid interest and prorations.
23451 considerations to note
The 23451 area includes oceanfront and Bayfront homes, coastal condos, and established neighborhoods. Many buildings and communities have homeowners or condo associations. If the property has an HOA or condo board, plan for potential association transfer fees, move-in fees, or document fees. Your contract and title quote should call these out clearly so you can plan ahead.
Ready to run the numbers with a local expert?
You deserve clarity before you make your next move. If you want a custom, itemized look at your closing figures for a 23451 purchase or sale, reach out to our team. With decades of Virginia Beach experience and a white-glove approach, we can coordinate your lender’s estimate, title quotes, and contract details so you close with confidence. Connect with The Crespo Group to get started.
FAQs
What are closing costs for a Virginia Beach home purchase?
- Closing costs are one-time fees and prepayments due at closing, including lender charges, title and settlement services, recording fees, and prepaids like taxes and insurance.
How much should a buyer in 23451 budget for closing costs?
- As general guidance, many buyers plan for about 2% to 5% of the purchase price, then replace that estimate with exact figures from the Loan Estimate and title quote.
How much should a seller in 23451 budget for closing costs?
- Many sellers plan for about 6% to 10% of the sale price, which includes negotiated commissions, title, prorations, and standard closing fees, excluding mortgage payoffs.
Who pays for title insurance in Virginia Beach?
- Buyers typically pay for the lender’s policy, while sellers often pay for the owner’s policy in many Virginia transactions, though this is negotiable and set by the contract.
When will I see my official closing numbers as a buyer?
- Your lender must deliver a Loan Estimate within three business days of application and a final Closing Disclosure at least three business days before closing, per CFPB rules.
Where can I verify recording fees for Virginia Beach?
- Recording fees and procedures are published by the Virginia Beach Circuit Court Clerk; your title company will use the latest schedule when preparing your settlement figures.
Do I have to set up an escrow account for taxes and insurance?
- Many lenders require an escrow account and will collect a few months of taxes and insurance upfront; your Loan Estimate and Closing Disclosure will show the exact amounts.
Can I negotiate who pays certain closing costs?
- Yes. Many fees are negotiable between buyer and seller, and the final split is decided in your purchase agreement based on market conditions and contract terms.
