Closing day should feel exciting, not confusing. If you are buying in Midlothian, the mix of lender fees, title charges, taxes, and prepaids can sneak up if you are not ready. The good news is you can plan for most of it and avoid surprises. In this guide, you will learn what closing costs cover, what is typical in Chesterfield County, and how to estimate your total with real examples and a simple checklist. Let’s dive in.
What closing costs cover
Closing costs are the upfront expenses you pay to get your loan, transfer ownership, and set up your new home. In many Midlothian purchases, buyers budget about 2 to 5 percent of the purchase price for these costs, excluding your down payment. Exact amounts depend on your loan, the property, and your title company.
Lender fees you will see
- Origination and processing: About 0.5 to 1.0 percent of your loan amount, sometimes shown as a flat fee. Underwriting, processing, and doc prep often total $400 to $1,200.
- Discount points: Optional prepaid interest you can buy to lower your rate. One point equals 1 percent of the loan amount.
- Credit report: Typically $25 to $50.
- Appraisal: Commonly $400 to $700 in the Richmond area, higher for complex homes.
- PMI: If required, it is usually a monthly charge. An upfront premium may appear on your closing statement depending on the program.
Title and settlement costs
- Title search and title insurance: A lender’s policy is required, and an owner’s policy is optional but recommended. Premiums range from several hundred to a few thousand dollars based on price and state rate schedules, often under 1 percent of price.
- Settlement or closing fee: Usually $300 to $800 for the title company to handle documents and funds.
- Recording and clerk fees: Typically $50 to $200 combined, based on documents recorded.
- Courier, wire, and notary: Often $25 to $150 combined.
Prepaids and escrow deposits
- Prepaid interest: Interest from your closing date until your first mortgage payment. Amount depends on your rate and your closing day.
- Initial escrow deposits: Lenders often collect a cushion such as 2 months of taxes and 2 months of insurance. This can range from a few hundred to a few thousand dollars.
- Homeowners insurance: Many lenders require your first year paid at closing or proof of a binder. Typical annual premiums run $700 to $1,800, depending on coverage and the home.
Inspections and reports
- General home inspection: Usually $300 to $600 for a single-family home.
- Specialized inspections: Radon, sewer or septic, chimney, roof, HVAC, or mold often cost $100 to $600 each.
- Termite or WDO inspection: Often required in Virginia, typically $50 to $150.
- Survey if needed: Commonly $300 to $800, sometimes waived if a recent survey exists.
Local taxes and transfer charges
- Virginia recordation and transfer taxes: The state and locality assess these. Who pays can vary by contract and custom. Your settlement statement will show the amounts and the payer.
- County recording fees: Small fixed charges that the title company pays on your behalf at recording.
HOA and community items
- HOA transfer or resale packet: Many 288 corridor neighborhoods have HOAs. Estoppel or resale packets are common and often $100 to $400.
- Prorated dues: You may reimburse the seller for dues they prepaid beyond closing.
Other possible costs
- Program fees: FHA, VA, or USDA loans have program-specific funding fees or mortgage insurance. Some can be financed into the loan or paid at closing.
- Title endorsements or gap coverage: Additional protections that carry extra charges.
- Attorney fees: Some buyers hire a real estate attorney. Virginia is typically title-company led, and costs vary by provider.
What buyers pay in Chesterfield
You will see some local conventions in Midlothian, but your contract controls who pays what. Buyers typically cover lender fees, appraisal, inspections, and their chosen title policy. Sellers often cover Realtor commissions and may share in transfer or recordation taxes based on contract terms and local custom. Confirm your exact breakdown with your agent and title company.
- Recording and processing: Deeds and deeds of trust are recorded with the Chesterfield Circuit Court Clerk. Your title company manages the recording and pays the county on your behalf.
- Property taxes: Real estate taxes are prorated at closing. The seller and buyer each pay their share for the time they own the property. Ask your lender or title company for current tax amounts to estimate escrow deposits.
- HOA norms along 288: Many subdivisions near 288 require HOA packets and may charge transfer or estoppel fees. Budget $100 to $400 for these items.
- Utilities and systems: Most neighborhoods near Midlothian use public water and sewer. Some outlying homes have well or septic. If not on public sewer, plan for a septic inspection, usually $300 to $600.
- VA, FHA, USDA programs: Expect unique fees like a VA funding fee or FHA mortgage insurance premium. These may be financed or paid at closing. Confirm your method with your lender.
- Title insurance standards: A lender’s title policy is customary and required. An owner’s policy is optional but recommended and is a one-time premium.
- Federal timing rules: You receive a Loan Estimate within 3 business days of application and a Closing Disclosure at least 3 business days before closing. Build your timeline around these milestones.
Sample costs for Midlothian homes
These examples show how closing costs can add up in our area. They exclude your down payment and assume a conventional loan with 20 percent down, standard fees, and customary buyer-paid items. Your actual numbers will vary.
Example A: Entry-level near 288
- Price: $325,000
- Estimated total buyer closing costs: about 2.2 percent, roughly $7,100
- Loan origination and processing: $1,800
- Appraisal: $450
- Home inspection: $425
- Termite inspection: $85
- Title search, lender’s policy, closing fee: $1,400
- Owner’s title policy: $800
- Recording and county fees: $150
- Homeowners insurance, first year: $900
- Initial escrow deposit: $1,000
- Miscellaneous fees: $100 to $200
Example B: Move-up home in a subdivision
- Price: $475,000
- Estimated total buyer closing costs: about 2.6 percent, roughly $12,350
- Loan origination and processing: $2,850
- Appraisal: $500
- General plus specialty inspection: $650
- Termite inspection: $100
- Title search, lender’s policy, settlement fee: $1,900
- Owner’s title policy: $1,150
- Recording and county fees: $200
- Homeowners insurance: $1,100
- Initial escrow deposit: $2,400
- HOA estoppel or resale packet: $200
- Miscellaneous fees: $100 to $200
Example C: Higher-priced or newer home
- Price: $625,000
- Estimated total buyer closing costs: about 2.8 to 3.5 percent, roughly $17,500 to $21,900
- Loan origination and processing: $3,500 to $4,000
- Appraisal: $600 to $1,000
- Inspections: $800 to $1,200
- Termite and other typical inspections: $150 to $300
- Title and closing fees, lender’s policy: $2,500 to $3,000
- Owner’s title policy: $1,600 to $2,300
- Recording and county fees: $200 to $300
- Homeowners insurance: $1,200 to $2,000
- Initial escrow deposit: $3,000 to $4,000
- HOA transfer fees if applicable: $200 to $400
- Miscellaneous: $200 to $300
Use these examples as a budgeting tool, then verify your final numbers with your lender and title company. Your Loan Estimate and Closing Disclosure will show the exact figures for your purchase.
Underwriting and closing checklist
Gather these items early to keep your loan on track and reduce last‑minute stress.
ID and basic information
- Government photo ID, Social Security number, and contact info for your agent and title company
Income and employment
- Last 2 years of tax returns and W‑2s, recent 30 days of pay stubs, and your lender’s employment verification
- If self-employed, 2 years of personal and business tax returns plus a current profit and loss and business bank statements
Assets and funds to close
- Last 2 months of bank statements for all accounts used for funds or reserves
- Statements for retirement, stock, or brokerage accounts if used for reserves or funds
- Gift letter and donor documentation if using gift funds
- Certified funds or wire per title instructions for your cash to close
Property and contract
- Fully executed purchase contract with addenda and any negotiated seller concessions
- HOA documents or resale packet if the property is in an association
- Seller disclosures and your inspection reports
- Proof of earnest money deposit
Insurance and title
- Homeowners insurance agent and binder effective on the closing date
- Flood insurance if required
- Title company contact information and any known liens or exceptions
Loan program specifics
- VA, FHA, or USDA documentation if applicable
- Authorization forms and tax transcript permissions your lender requests
- Gift documentation and clear paper trail for all gifted funds
Property items to verify in Midlothian
- Septic inspection and pumping history if not on public sewer
- Well flow test if the property uses a well
- Recent survey or order a new one early if needed
- Any county permits for recent work that might affect title or appraisals
Practical timing notes
- Loan Estimate: within 3 business days of application
- Inspections and appraisal: schedule right after ratification
- Closing Disclosure: delivered at least 3 business days before closing, review carefully
- Day of closing: bring valid ID and certified funds or wire as instructed
Timing and negotiation tips
A little planning can save you money and time.
- Ask for seller concessions: You can negotiate for the seller to pay a portion of your closing costs, especially in slower market conditions.
- Consider rate vs. points: You can negotiate a seller credit toward discount points if buying down your rate fits your plan.
- HOA fees: Transfer or resale packet fees can be negotiated. Ask your agent what is customary in that community.
- Lock insurance and HOA items early: Getting your insurance binder and HOA packet started early helps your title company finalize your numbers on time.
Verify your numbers
Your team will give you exact figures as you move through the process.
- Lender: All loan-related fees, prepaids, and escrow estimates
- Title company: Title insurance premiums, settlement fee, recording charges, and transfer tax treatment
- County: Current tax rates and due dates to inform escrow deposits
- HOA: Transfer or estoppel fees and dues proration
Review your Loan Estimate and Closing Disclosure closely. Use the three-day review window to ask questions and make sure everything is correct before you sign.
When you are ready to talk strategy for your offer, concessions, and closing timeline, our boutique team is here to guide you. Schedule Your Listening Appointment with Susan Stynes to get a clear, custom plan for your Midlothian purchase.
FAQs
How much are buyer closing costs in Midlothian?
- Many buyers budget about 2 to 5 percent of the purchase price for closing costs, excluding the down payment, with exact figures set by your lender and title company.
Who pays transfer and recordation taxes in Chesterfield?
- It depends on your contract and local custom, so confirm the payer with your agent and title company, and review your settlement statement for the final allocation.
Can I roll closing costs into my mortgage?
- Some programs allow certain fees to be financed or offset with lender or seller credits, but terms vary by loan type and pricing, so ask your lender for options.
What inspections should I budget for locally?
- Plan for a general home inspection, termite or WDO, and specialty tests like radon or septic if not on public sewer, plus any property-specific inspections your agent recommends.
When will I get my final closing figures?
- You should receive a Closing Disclosure at least 3 business days before closing, which shows your exact cash to close and all line items to review.
Is owner’s title insurance required in Virginia?
- A lender’s policy is required by the lender, while an owner’s policy is optional but recommended since it protects your equity with a one-time premium at closing.
