Buying a home in Hampton Roads is exciting — until you see the closing disclosure for the first time. Between lender fees, title insurance, and prepaid items, buyers in Virginia typically pay between 2% and 5% of the purchase price in closing costs, on top of their down payment. On a $375,000 home (close to the current Hampton Roads median), that's roughly $7,500 to $18,750.
The good news: a lot of this is negotiable, some of it is a one-time cost that protects you for as long as you own the home, and there are programs specifically designed to help buyers reduce the cash they need at closing.
What You'll Pay: The Typical Line Items
Lender Fees
Loan origination fees, underwriting, and processing typically run 0.5% to 1% of the loan amount. On a $350,000 loan, that's $1,750 to $3,500. Some lenders offer 'no-origination-fee' loans in exchange for a slightly higher interest rate — worth comparing if you're tight on cash at closing.
Appraisal
Your lender will require an independent appraisal to confirm the home is worth what you're paying. In Hampton Roads, appraisals typically run $500–$700. You pay this upfront, usually before closing.
Home Inspection
Not technically a closing cost, but plan for $400–$600 for a standard home inspection. For older homes or properties with a well and septic, budget more. This is paid directly to the inspector, typically before closing.
Title Search and Title Insurance
Title insurance protects you (and your lender) if a title problem surfaces after closing — a prior lien, a clerical error in public records, or an heir with an undisclosed claim. In Virginia, buyers pay for the lender's title insurance policy; owners' title insurance is optional but strongly recommended. Combined title fees typically run $1,200–$2,500 depending on purchase price.
Recording Fees and Transfer Taxes
Virginia charges a deed recordation tax of $0.25 per $100 of purchase price, typically split between buyer and seller. Recording fees for the deed and deed of trust run $75–$150 through the city clerk's office.
Prepaid Items
Prepaid items aren't fees — they're costs you're paying ahead of time. Expect to prepay: (1) homeowners insurance (first year's premium, typically $1,200–$2,000 in coastal Virginia), (2) 2–3 months of property taxes into escrow, and (3) prepaid mortgage interest from closing date to month-end. Together, prepaids often add up to $3,000–$6,000 on a typical Hampton Roads purchase.
How to Reduce What You Pay at Closing
Three legitimate ways buyers lower their closing costs in this market:
1. Negotiate seller concessions. In a balanced or buyer-friendly market, you can ask the seller to contribute toward your closing costs as part of the offer. In Hampton Roads, seller concessions of 2–3% are common, especially on homes that have been sitting. This rolls your costs into the deal rather than coming out of pocket.
2. Use VHDA programs. Virginia Housing (formerly VHDA) offers down payment and closing cost assistance for first-time buyers who meet income limits. The Down Payment Assistance Grant doesn't have to be repaid — it's worth checking eligibility before you write your first offer.
3. Shop lenders. Closing costs vary significantly by lender. Getting three loan estimates takes about an hour and can save you $1,500–$3,000. Compare the Loan Estimate (the standardized three-page form every lender is required to give you) side by side.
Ready to Make Your Move?
Whether you're buying, selling, or just getting your bearings in this market — I'd love to help. I'm Barry Jenkins, REALTOR® serving Virginia Beach and the greater Hampton Roads area. Let me show you what this market can do for you.
📞 Call or text: 757-919-8874 | 🌐 legacyhometeamlpt.com