Staring at a closing disclosure and wondering what every line means? You are not alone. If you are buying or selling in Herndon, even small details can affect what you pay at the closing table. In this guide, you will learn typical closing cost ranges in Northern Virginia, who usually pays what in Fairfax County, and how to estimate your own numbers with confidence. Let’s dive in.
Closing costs at a glance
Closing costs are one-time fees and prepaids you pay to finalize a home purchase or sale. In Northern Virginia, buyers often spend about 2% to 5% of the purchase price on closing costs, not including the down payment. Sellers often spend about 6% to 10% of the sale price, which includes real estate commissions plus typical seller-side items. Local custom and the purchase contract determine the final split.
You will receive a Loan Estimate early in the loan process and a Closing Disclosure at least three business days before settlement. The Closing Disclosure lists the exact amounts and who is paying each item. For timing and what to expect, see the Consumer Financial Protection Bureau’s overview of the closing process on the CFPB’s Owning a Home site.
Buyer costs in Herndon
Most buyer costs fall into a few buckets. Here is how they typically work in Fairfax County.
Lender fees and points
- Loan origination, processing, and underwriting cover the cost to create and approve your loan. These are often 0.25% to 1.0% of the loan amount, sometimes shown as points.
- Discount points are optional and lower your interest rate. One point equals 1% of the loan amount.
- Smaller items like credit reports, flood certification, and tax service fees often total $25 to $400.
Appraisal and valuation
- Lenders usually require an appraisal to confirm the home’s value. Typical fees range from $400 to $900, with higher fees for complex properties.
Title and recording
- A title search checks ownership history. Lender’s title insurance protects the lender and is typically paid by the buyer in Virginia.
- Owner’s title insurance is often paid by the seller in Virginia, although this is negotiable and set by your contract.
- Title premiums and settlement fees vary with the price and title company. Expect lender’s title policy, search, and settlement-related fees to total about $500 to $2,000 or more.
- Recording fees to register your deed of trust and other documents with Fairfax County often range from $50 to $300 per document.
Prepaids and escrow setup
- Your first year of homeowners insurance is usually paid at closing. Premiums often run $700 to $2,500 or more, depending on coverage and property type.
- Lenders commonly require an initial escrow deposit that covers several months of property taxes and insurance. Expect about 2 to 6 months of these payments to start the account.
HOA and surveys
- If the property is in a condo or HOA, transfer and document fees often run $100 to $400 or more. Who pays is set in your contract.
- A survey may be requested by the lender or title company. Fees often range from $300 to $1,000 or more.
Tip: Your lender is required to provide a Loan Estimate early and a final Closing Disclosure at least three business days before closing. Review these carefully. The CFPB’s guide to closing explains the timing and the documents you will see.
Seller costs in Herndon
Sellers in Fairfax County usually pay the following, subject to the listing agreement and contract terms.
Commissions
- Real estate commissions are the largest seller cost and are paid from sale proceeds at closing. In Northern Virginia, totals of about 5% to 6% are common, but commissions are always negotiable.
Title and settlement
- In many Virginia transactions, the seller pays for the buyer’s owner’s title insurance policy. The premium depends on the sale price and can range from several hundred dollars to a few thousand dollars.
- Sellers may also pay certain document preparation and settlement fees, often $200 to $1,000 or more, depending on the company and services.
Taxes, prorations, and payoffs
- Property taxes are prorated as of the closing date. The seller pays for days owned in the current period, and the buyer pays from closing forward.
- If you have a mortgage, your balance and any fees are paid off from the sale proceeds at closing.
Repairs and credits
- Sellers sometimes offer repair credits or agree to escrow holdbacks for work to be completed after closing. These are negotiable and must be spelled out in the contract.
Transfer and recording taxes
Virginia charges state-level recordation and grantor taxes, and localities may add their own components. The exact amounts depend on the type of document and the consideration or loan amount. For current rules and forms, refer to the Virginia Department of Taxation. In Fairfax County, you can verify assessed values, billing schedules, and payment status through the Fairfax County Department of Tax Administration. Recording is handled by the local Clerk of the Circuit Court. Your title company will calculate these taxes and fees on your settlement statement.
To estimate prorations, pull the latest tax bill and closing date, then apply a daily rate for the period. Title companies can provide precise prorations once you have a ratified contract and a settlement date.
Negotiating credits and assistance
Seller concessions
You can ask the seller to contribute to your closing costs. Concessions are written as a dollar amount or percentage and applied to eligible buyer expenses at closing. Loan programs cap how much a seller can contribute. The limits differ by program, so always confirm with your lender.
Lender credits
Some lenders offer credits in exchange for a higher interest rate. This can reduce your cash needed for closing. Ask your lender to show how a credit changes both your upfront costs and your monthly payment so you can compare the tradeoffs.
Assistance programs
Virginia Housing offers mortgage programs and down payment or closing cost assistance for eligible buyers. Programs change and have income and price limits. Review current options on Virginia Housing’s website and consult your lender about how assistance integrates with your loan.
Example: a Herndon home purchase
The following is an illustrative example to help you frame the numbers. Your actual costs will depend on your loan, title company, and contract.
- Purchase price: $650,000
- Down payment: 10% ($65,000) for a $585,000 loan
- Assume a conventional loan, buyer pays typical buyer costs, and seller pays the owner’s title policy and a 5.5% commission
Illustrative buyer costs:
- Origination and processing at 0.5% of loan: about $2,925
- Appraisal: about $600
- Smaller lender fees: about $300
- Lender’s title policy, title search, and settlement: about $1,200
- Recording fee for the deed of trust: about $150
- Initial escrow deposit for taxes and insurance: if annual total is $4,800, four months equals about $1,600
- First-year homeowners insurance: about $1,200
- HOA transfer fee if applicable: about $200
- Estimated buyer closing costs excluding down payment: roughly $8,000 to $12,000 in this scenario
Illustrative seller costs:
- Real estate commissions at 5.5%: about $35,750
- Owner’s title policy and seller-side settlement fees: about $1,500
- Prorated taxes: depends on closing date
- Mortgage payoff: depends on the seller’s current balance
To test monthly payments and interest rate scenarios, try an online tool like the Bankrate mortgage calculator. For exact closing costs, rely on your lender’s Loan Estimate and your title company’s settlement worksheet.
Build your estimate checklist
Use this simple path to dial in your numbers in Fairfax County.
- Get your Loan Estimate. Ask your lender for an updated Loan Estimate based on your loan type and target closing date.
- Request a title quote. Have a local title or settlement company provide buyer and seller fee estimates and title insurance premiums.
- Pull local taxes and HOA details. Use Fairfax County resources to confirm current assessed value, billing, balances, and any HOA dues.
- Confirm credits and who pays what. Make sure the contract clearly states any seller concessions and who pays the owner’s title policy and HOA fees.
- Review your Closing Disclosure. You must receive it at least three business days before closing. Compare it to your contract and estimates and ask questions early.
Local resources
- Learn about closing timelines and disclosures on the CFPB’s Owning a Home closing page.
- Review recordation and transfer tax guidance on the Virginia Department of Taxation site.
- Check real estate tax assessments and billing through the Fairfax County Department of Tax Administration.
- Explore loan and assistance options on the Virginia Housing website.
- Model payments and interest scenarios with the Bankrate mortgage calculator.
If you want a clear, local walkthrough of your Herndon closing numbers, reach out. I will coordinate with your lender and title company, verify Fairfax County taxes, and structure credits to fit your goals. When you are ready, contact Anthony C Ford to get a personalized estimate and a plan to the closing table.
FAQs
What do buyer closing costs include in Herndon?
- Typical buyer costs include lender fees and points, appraisal, lender’s title insurance and title search, recording fees, homeowners insurance, initial escrow deposits, and any HOA transfer fees.
Who usually pays owner’s title insurance in Virginia?
- In many Virginia closings, the seller pays for the buyer’s owner’s title policy, but this is negotiable and set by the purchase agreement and local practice.
How are Fairfax County property taxes prorated at closing?
- Taxes are prorated to the closing date based on the current billing period, with the seller paying for days owned and the buyer paying from closing forward.
How do seller credits toward buyer costs work?
- Seller concessions are a negotiated credit applied to eligible buyer expenses, and loan programs cap the allowed amount, so confirm limits with your lender before you write your offer.
When will I see my final numbers before closing?
- Your lender must deliver the Closing Disclosure at least three business days before settlement, as explained by the CFPB, so review it carefully and ask questions right away.
Are there closing cost assistance programs in Northern Virginia?
- Some buyers may qualify for programs through Virginia Housing that can help with down payment or closing costs, subject to income and purchase price limits and lender participation.
