What will you really pay at the closing table in Fairfax? If you are trying to budget past your down payment, the fees can feel like alphabet soup. You deserve a clear, local breakdown so there are no surprises. In this guide, you will learn what buyers typically pay in Fairfax, how costs change by loan type, what is negotiable, and smart ways to lower or shift expenses. Let’s dive in.
What closing costs include
Closing costs are the one-time fees due at settlement, separate from your down payment. In Fairfax, buyers commonly plan for about 2% to 5% of the purchase price for closing costs, depending on your loan, lender pricing, and prepaids. Your lender will issue a Loan Estimate within three business days of application and a Closing Disclosure at least three business days before settlement. Use those documents to track your numbers and budget.
Lender and loan fees
These are charged by your mortgage lender and can vary.
- Origination or processing fee: often 0.5% to 1.0% of the loan amount, or a flat fee
- Application, underwriting, or processing: sometimes bundled with origination
- Credit report: typically $25 to $75
- Appraisal: often $450 to $800 in Northern Virginia, depending on property type
- Rate-lock, courier, or wire fees: small flat fees, often $25 to $300 in total
- Discount points (optional): each point equals 1% of the loan amount to reduce your rate
Title and settlement costs
Virginia closings are handled by a title company or settlement attorney. You will see both title-related premiums and the fee for conducting settlement.
- Title search and exam: varies by provider and property
- Lender’s title insurance: required by the lender, one-time premium
- Owner’s title insurance: optional but recommended; who pays is negotiable
- Settlement or escrow fee: charged by the title company or attorney
- Recording and clerk fees: typically modest, around $30 to $200 depending on documents
Prepaids and escrow setup
Prepaids are not fees for services. They are advance deposits for items you will pay in the future.
- First-year homeowner’s insurance premium
- Property tax proration per Fairfax County timing and the closing date
- Prepaid mortgage interest from closing until your first payment date
- Initial escrow deposits, often 1 to 3 months of taxes and insurance as reserves
Mortgage insurance and program fees
Depending on your loan, you may see program-specific items.
- Private Mortgage Insurance (PMI) for conventional loans with less than 20% down. The annual cost commonly ranges about 0.3% to 1.5% of the loan amount, paid monthly or as a single upfront option.
- FHA mortgage insurance premiums include an upfront premium (historically 1.75% of the loan amount) and an annual premium paid monthly. Your lender will confirm the current schedule.
- VA funding fee or USDA guarantee fee. These are program-specific and may be financed into the loan per program rules.
Other possible items
- HOA or condo transfer/setup fees and document fees
- Pest, septic, or other inspections if required
- Survey, if required
- Optional home warranty, sometimes negotiated as a seller concession
How loan type changes costs
Your mortgage program directly affects which fees appear and how much you bring to closing.
Conventional loans
With strong credit and 20% down, you may avoid PMI and lower your total closing cost percentage. If you put less than 20% down, PMI adds a monthly or upfront cost. Conventional guidelines allow seller concessions up to certain caps that vary by your down payment tier. Ask your lender to confirm the current limits so you can plan negotiations.
FHA loans
FHA adds mortgage insurance both upfront and monthly, which raises the total costs paid at closing or financed. FHA also allows seller-paid closing costs up to 6% of the sales price, subject to current program rules and your lender’s guidance. For low-down-payment buyers, FHA can make closing costs a larger share of the cash needed.
VA loans
VA loans include a funding fee that varies by your service history, down payment, and whether it is first or subsequent use. The funding fee can often be financed. VA buyers do not pay monthly mortgage insurance, which can help monthly affordability. Program rules also allow certain seller-paid items and concessions. Work with a VA-approved lender to confirm specifics.
USDA loans
USDA loans use an upfront guarantee fee and an annual fee in place of conventional PMI. Some or all of the upfront fee can be financed, subject to program rules. USDA eligibility depends on property location and income, so confirm your options early if this program is on your radar.
Fairfax practices to know
Local custom and contract terms matter. In Northern Virginia, some items are negotiated differently than in other regions.
Who runs settlement
In Virginia, a title company or settlement attorney typically conducts closing. You will choose a settlement agent or follow the contract’s selection. Ask early who will issue your estimates and handle your Closing Disclosure.
Property tax proration
Fairfax County property taxes are prorated at closing. The seller receives credit for the period they owned the home, and you pay for the portion you will own. Your lender and settlement agent will calculate the exact amounts for your closing date and the current tax cycle.
HOA and condo fees
Many Fairfax-area communities have HOA or condo associations. Expect potential transfer fees and document fees at closing. Your agent can help you anticipate these line items when you identify a specific property.
Title insurance custom
Owner’s title insurance is optional, but many buyers choose it for protection. Who pays for the owner’s policy can be negotiable in this market. Confirm what your contract specifies and ask your settlement agent for a quote early.
What buyers typically pay
For planning, use a broad range of 2% to 5% of the purchase price for buyer closing costs in Fairfax, not including your down payment. The percentage depends on your loan program, lender pricing, title premiums tied to price, and prepaids.
Example for illustration only: On a $700,000 purchase, 2% to 5% suggests $14,000 to $35,000 in closing costs. Your actual number may be lower or higher based on loan fees, insurance choices, tax escrows, and negotiated credits. Always rely on your Loan Estimate and updated title quote for your specific transaction.
Ways to reduce or shift costs
You have options to lower out-of-pocket costs while keeping your offer competitive.
- Seller concessions. Ask the seller to pay some closing costs, within program caps for your loan type. This is common and can be built into your offer strategy.
- Lender credits. You may choose a slightly higher interest rate in exchange for a credit at closing that covers some costs. This can be useful if upfront cash is the priority.
- Program assistance. Virginia Housing and Fairfax County programs sometimes offer down payment or closing cost assistance for eligible buyers. Confirm timing and documentation early, since some programs require pre-approval.
- Finance eligible fees. Certain program fees, such as a VA funding fee or USDA guarantee fee, can often be rolled into the loan.
- Shop lenders. Compare Loan Estimates for origination fees, rate options, and credits. Small differences can add up to meaningful savings.
- Clarify title charges. Get an itemized quote from the settlement agent. Knowing who pays for the owner’s policy and which fees are negotiable can improve your net cost.
How to estimate your cash to close
Use this simple, local checklist to stay organized from offer to closing day.
Request a Loan Estimate. Review the “Estimated Closing Costs” and “Cash to Close.” Ask your lender to explain any lender credits, points, or PMI.
Get a title quote. Ask your settlement agent for an itemized estimate, including lender’s and owner’s title insurance, settlement fee, and recording fees.
Confirm who pays what. Read your contract and ask about local custom for owner’s title insurance and HOA document fees.
Update prepaids. Verify homeowner’s insurance and tax escrows with your lender as you pick a closing date.
If using assistance, lock timing. Make sure eligibility, documentation, and disbursement deadlines line up with your contract date.
Review your Closing Disclosure. By law, you receive it at least three business days before settlement. Compare it to your Loan Estimate and ask questions immediately if something looks off.
Final thoughts
When you understand each line item, closing costs become a planning exercise, not a surprise. In Fairfax, expect a 2% to 5% range, shaped by your loan type, title premiums tied to price, and prepaids like taxes and insurance. With the right mix of seller credits, lender options, and potential assistance, you can reduce the cash you bring to the table while keeping your monthly payment in line.
If you want a calm, concierge process from offer to keys, let’s map your numbers before you start touring. Reach out to Vie Nguyen to build a clear budget and negotiation plan that fits your Fairfax goals.
FAQs
What are typical buyer closing costs in Fairfax, VA?
- Most buyers plan for about 2% to 5% of the purchase price for closing costs, excluding the down payment.
Who pays for owner’s title insurance in Fairfax?
- It is negotiable in the Northern Virginia market, so check your purchase contract and confirm with your settlement agent.
Are Fairfax County property taxes paid at closing?
- Property taxes are prorated at closing, with the seller credited for their period of ownership and the buyer paying their portion.
Which loan type has the lowest upfront costs?
- It depends on pricing and program rules; FHA adds upfront and monthly mortgage insurance, while VA uses a funding fee and conventional may require PMI with less than 20% down.
How do I know my exact cash to close?
- Use your Loan Estimate for budgeting and your Closing Disclosure, delivered at least three business days before settlement, for final numbers.
