Here's the post I'm helping answer from a more active sub:

Hello all. I am looking at potentially purchasing my first home via VA loan. I am trying to gather my thoughts and fully understand what cash is actually required to purchase a home.

Required: -Appraisal (varies) -Home inspection (varies) -Earnest money (maybe?) -Closing costs (2-5% of purchase price)

VA doesn't require you to pay for the appraisal upfront. This will be collected at closing.

2%-5% is a very wide range of closing costs. I'll try to break it down to be more specific.

Here is a list of closing costs (not all of them, but this should cover the majority)

Lender Fees

These are charged by the mortgage lender and related service providers. They may include:

Underwriting (~$1,100): The person reviewing your file to make sure it meets loan guidelines.

Origination Fee: Charged by the lender for issuing the loan (can vary or be $0).

Discount Points: Optional upfront fee to buy a lower interest rate.

Appraisal (~$700): To verify the value of the home.

Processing (~$700): Sometimes charged for organizing the loan file.

Verification of Employment (~$100): If done through a paid third-party system.

Credit Report (~$100): Charged by the credit bureaus.

Flood Certificate (~$8): Confirms if the home is in a flood zone.

Mortgage Registration (MERS) Fee ($25): Registers who services your mortgage.

Survey (~$400): Only in some states.

Lender Title Fees: Here's Old Republic's website to calculate lender title fees. The lender title policy is the largest cost. The seller will likely pay for the homeowner's policy.

Other Fees

These are related to property ownership and government/HOA charges. I'm using an Ogden UT example for some of these:

Recording Fee: Registers you as the legal owner with the county.

Transfer Tax: Varies by state, and some states don't have a transfer tax.

Prepaid Homeowner’s Insurance: You’ll typically pay one year upfront.

Prepaid Interest (~$74.41/day on a $388,000 loan at 7% interest): Based on your closing date, interest rate, and loan amount.

Property Taxes (~$_ /month× ~5 months = $_): Usually you prepay several months.

Real Estate Agent/HOA Fees: Some brokerages charge a flat fee (~$500). If there’s an HOA, you might pay a one-time transfer fee, though it’s negotiable.

Could be helpful, but not required: -Down payment (can help with points to drop interest rate and also funding fee) -Funding fee (can be rolled into loan; 2.15% of loan)

VA doesn't require a down payment. VA also doesn't require you to pay out of pocket for the funding fee. If you are a veteran and have a disability rating, you may have the funding fee waived completely.

Are there any other things I am missing or things I am misunderstanding about what’s listed above?

Here's the post that should give you a good idea of how much closing costs are.

It's also possible that the seller could pay for all of your closing costs (if you can negotiate it) So you could come away without needing to pay anything at closing.

Hope this helps! Good luck out there.

Sam