Closing Costs for VA Loans in Dallas
When you apply for a VA loan in Dallas, you know you’re getting a loan that will make buying your dream house affordable and easy. But there’s more to the loan than you might think. Every loan has some type of fees you’ll have to pay in addition to the interest rate on the loan itself. Before you take out your VA loan, make sure you understand the closing costs you could have to pay.
What’s Included in Closing Costs for VA Loans?
Here are some of the most common closing costs for VA loans in Dallas, and in general:
- Origination Charge
The origination charge or origination fee is a charge that covers the creation of the loan itself. Typically, this is about 1 percent of the total loan amount. If the amount is more than 1 percent, work with a different lender.
- Appraisal Charges
You’re required to get your house appraised before you can get a VA loan in Dallas. This allows the lender to make sure that the house you’re buying qualifies under the VA restrictions in property usage. The fee can vary from county to county, but you can expect to pay between $500 and $700 in Texas. This fee is paid upfront and before you receive the loan.
- Title Insurance
When you buy a house, you want the title to be free from liens or other legal issues. If there are any, you could end up being financially liable for the previous owners’ problems. Title insurance helps cover those unexpected fees and some lenders require that you buy the insurance before you can receive the loan. Even if they don’t, it’s well worth buying the coverage on your own.
- Credit Checks
Though your eligibility isn’t always set by your credit score, many lenders will still run a credit check before issuing you a VA loan. Some lenders won’t ask you to pay for that credit check, but others will. This shouldn’t be expensive, but don’t be surprised if you’re asked to pay for the credit check upfront as part of your loan application.
Now that you know the most common charges and fees, you’re ready to apply for your VA loan in Dallas today. Contact us or apply online now.