Keep Your VA Closing Cost Low with NBKC

Home buying can be a stressful time, but National Bank Of Kansas City makes it easier. We work with you to keep the VA closing cost down. Although most lenders charge an origination fee, which can be up to 1%*, National Bank Of Kansas City does not. In addition, the borrower can pay for all reasonable and customary fees for any or all of the “itemized fees and charges” as determined by the VA.

What is a VA Closing Cost?

Closing costs are costs associated with underwriting fees, attorney fees, title insurance, and any other item associated with setting up your loan.

The lender decides what the home buyer will need to pay in closing costs and will provide that information to you prior to closing. The estimate is called a “Good Faith Estimate” and is based on the value of the home. Most lenders will charge anywhere between 2% and 5% of the value of your home.

National Bank Of Kansas City provides Good Faith Estimates as a routine part of the home loan process, but our customers are welcome to ask for an VA closing cost estimate at any time.

How to Pay a VA Closing Cost

Borrowers often think VA loans are funded without a closing cost, but that’s not true. Just like with most home loans, VA closing costs do apply and typically need to be paid at the time the contract is signed.

Similarly, many borrowers assume that a VA closing cost can be rolled into a loan, but again, that’s not true. The only fee that can be rolled into the loan is the VA funding fee.

If it is difficult for you to pay the out-of-pocket VA closing cost, ask the seller to pay part or all of the closing cost. This is common practice in many real estate transactions. If the seller agrees, then those terms will be covered in the sales contract.

* Example: For $150,000 loan; 360 monthly payments of $809.26 are based on principal and interest only, and an annual percentage rate (APR) of 5.068%. APR is subject to borrower qualification and subject to change. Third party fees may apply.