Feeling unsure about how much cash you’ll need to close on a home in Arlington? You are not alone. Closing costs can feel mysterious when you are focused on your down payment and the right offer strategy. This guide breaks down what closing costs include, what buyers in Arlington typically pay, and how to get exact numbers before you sign. Let’s dive in.
What closing costs include
Closing costs are the one-time fees and prepaids you pay to finalize your purchase. They are separate from your down payment. In Arlington, your closing costs commonly include lender fees, third-party services (like appraisal and inspections), title and recording charges, prepaids for taxes and insurance, and any HOA or condo transfer fees.
As a starting point, buyers often budget about 2% to 5% of the purchase price for closing costs, not counting the down payment. Arlington’s higher home prices can push the total dollar amount up even if the percentage is similar. Sellers typically cover real estate commissions, while buyers cover most lender and settlement charges, but many items are negotiable.
Buyer costs in Arlington
Loan-related charges
- Loan origination and underwriting. This is what your lender charges to process, underwrite, and fund your loan. It may be a flat fee or a percentage of the loan amount, often 0% to 1%.
- Discount points. These are optional prepaid interest charges to lower your rate. One point equals 1% of your loan amount. You choose whether to buy points based on your goals and time horizon.
- Credit report, application, and processing. Lenders often bundle these items, which can total from about $25 to $500 depending on the program.
Third-party services
- Appraisal. Most lenders require an independent appraisal. In Northern Virginia, a typical appraisal for a single-family home often runs about $450 to $900, with complex properties costing more.
- Inspections. Most buyers order a general home inspection and may add pest, radon, or sewer scope inspections. A general inspection often ranges from $300 to $700, and specialty inspections can add $100 to $600 each.
- Survey or certification. If needed, expect around $300 to $1,200 depending on lot size and complexity.
Title and settlement
- Title search and title insurance. You will see two policies. A lender’s title policy is usually required by your lender. An owner’s title policy is optional but recommended to protect your ownership from covered title claims. Premiums are one-time and based on the purchase price and state rate schedules.
- Settlement or closing fee. This is the fee the title or settlement company charges to conduct the closing, often a flat amount in the low hundreds.
- Recording fees. The Arlington County Circuit Court records your deed and mortgage. Fees are set by state/county schedules and are typically modest per document.
Taxes and government charges
- Prorated real estate taxes. The buyer and seller settle up based on who owns the property when. The proration is generally calculated as: annual tax divided by 365, multiplied by the number of days each party owns the home that tax period.
- Transfer or recordation taxes. Virginia charges recordation-related taxes and fees. Who pays what can be negotiated in your contract, so confirm with your agent, lender, and title company for your specific transaction.
Prepaids and escrow reserves
- Homeowners insurance. With a mortgage, you typically prepay the first year’s premium at closing.
- Escrow reserves. Your lender may collect 2 to 12 months of property tax and insurance to seed your escrow account.
- Mortgage insurance. On FHA loans, you may pay an upfront mortgage insurance premium. On conventional loans with less than 20% down, you may have private mortgage insurance with an initial or monthly cost.
HOA and condo fees
- Transfer, resale package, and estoppel fees. Condominium and HOA communities often charge administrative fees to provide documents and process the ownership transfer. These can run $100 to $500 or more depending on the association.
- Prorated dues. You will also reimburse or be reimbursed for dues based on your closing date.
Miscellaneous items
- Settlement attorney fee. Virginia allows non-attorney closings, but you may choose to hire an attorney. Fees vary.
- Wire, courier, and small admin charges. Expect modest amounts for secure funds transfer and document handling.
Seller costs and local customs
Sellers typically cover the real estate commissions, which are usually the largest seller expense. Commission totals are negotiated and often fall in a range around 5% to 6% of the sale price, split between listing and buyer brokerages. Sellers also pay off any existing mortgage, clear liens or judgments, and handle their share of prorations.
In some areas, it is customary for sellers to pay for an owner’s title policy, but practices vary. In Northern Virginia, details on who pays for which title items, plus any transfer taxes or resale fees, are often negotiable in the contract. Many local buyers use conventional loans, and title companies frequently conduct closings.
Estimate your total
Follow this straightforward process to get accurate numbers for your Arlington purchase.
- Get Loan Estimates from at least two lenders. Compare origination fees, points, and rate options. Each estimate will also include placeholder numbers for title and third-party fees.
- Request a preliminary title quote. Title companies in Arlington will provide itemized estimates for title insurance, settlement, and recording.
- Ask for prorations. Have your agent request current HOA or condo dues and confirm how taxes will be prorated based on your closing date.
- Check county details. Confirm recording fees and Arlington’s current real estate tax rates and billing timelines with county offices or your title company.
- Add prepaids and escrows. Ask your lender how many months of tax and insurance they will collect at closing, and include your first year of homeowners insurance.
- Add appraisal and inspections. Get current price quotes from local inspectors and confirm the appraisal fee with your lender.
- Sum everything. Tally lender fees, third-party services, title and recording, prepaids and escrows, prorations, any HOA transfer charges, and your optional owner’s title policy.
Quick checklist to gather
- Your most recent Loan Estimate(s)
- A preliminary title quote
- HOA or condo contact and dues info
- County tax bill details and billing cycle info
- Appraisal and inspection price quotes
- Homeowners insurance quote
Illustrative example — not a quote
Purchase price: $600,000. Loan: 80% LTV ($480,000). A typical buyer closing cost range might be about 2.5% to 3.5% of the purchase price, or roughly $15,000 to $21,000. Below is a sample breakdown of common items.
Loan origination and underwriting: $1,500
Appraisal: $600
Credit report and processing: $150
Title search and lender’s title insurance: $1,200
Owner’s title insurance (optional, one-time): $2,500
Settlement or closing fee: $450
Recording fees: $200
Prorated property taxes: $1,200
Prepaid homeowners insurance (first year): $900
Escrow reserves for taxes/insurance (example 2 months): $2,000
Inspections (home and pest): $600
HOA transfer and resale package: $300
Miscellaneous (wire and courier): $100
Total without owner’s policy: ≈ $9,200
Total with owner’s policy: ≈ $11,700
To reach 2.5% to 3.5% on a $600,000 purchase, the remaining amount often comes from lender charges, optional points, or higher escrow requirements. This is why a higher-priced market like Arlington can produce larger dollar amounts even when the percentage range is similar.
Ways to reduce costs
- Shop lenders. Compare at least two Loan Estimates and ask about lender credits. Credits can reduce upfront costs but may increase your interest rate.
- Negotiate seller concessions. You can request that the seller pay some of your closing costs. Your negotiating power depends on market conditions and your contract terms.
- Be selective with options. Consider whether discount points make sense for your time horizon. Decide on the owner’s title policy with advice from your agent and title company.
- Use assistance programs. State and local programs can help with down payment or closing costs if you are eligible. Ask your lender about current options.
- Compare title company fees. Request an itemized title quote and compare inclusive costs, not just one line item.
From estimate to closing
Early in the process, you will receive a Loan Estimate from your lender. Before settlement, you will receive a Closing Disclosure with your final figures. Expect some differences between the two documents. Review them line by line with your lender and title company, and ask for explanations of any changes. Larger increases must follow federal disclosure timing rules, so speak up if anything looks off.
Work with an advocate
Clear numbers and a clean contract can save you real money. With a background as a Fortune 10 contracts attorney, Paula Heard pairs legal-grade review with local market strategy to protect your interests. Our team negotiates credits when possible, vets title and lender fees, and coordinates the details so you close with confidence and fewer surprises. Ready to see exact numbers for your Arlington purchase? Connect with Paula Heard to review options and next steps.
FAQs
How much cash should I bring to closing in Arlington?
- Plan for your down payment plus closing costs and a small buffer. As a starting point, buyers often budget about 2% to 5% of the purchase price for closing costs. Use your Loan Estimate and a title quote to pin down your exact total.
Who pays for the owner’s title insurance in Arlington?
- It varies by contract and local practice. Some markets see the seller pay, others the buyer, and sometimes the cost is split. Confirm responsibilities in your purchase agreement and title quote.
Can I roll closing costs into my loan?
- Sometimes. Certain loan programs allow lender or seller credits that reduce your upfront cash, but rolling costs in can increase your rate or loan amount. Your lender can explain program limits and tradeoffs.
How are Arlington property taxes prorated at closing?
- Proration typically uses a daily rate based on the annual tax. The buyer and seller settle who owes what based on the closing date. Confirm current tax rates and billing cycles with county offices or your title company.
Are there transfer or recordation taxes in Virginia?
- Virginia has state recordation-related taxes and fees. Who pays what can be negotiated and may vary by deal. Your lender or title company can confirm the exact amounts for your property and loan.
When will I know my final closing numbers?
- Your lender must provide a Closing Disclosure before settlement. Compare it to your Loan Estimate and ask the lender and title company to explain any differences before you sign.
