How much money should I save up for closing costs?

Love our videos? Then you'll love working with us even more!
====================================
Like with all home loans, every VA loan comes with closing costs-it doesn't matter if you're getting a purchase, cash-out, or IRRRL. You should know what these closing costs are and how much money you should save up so you're prepared to pay them when your loan closes.
For starters, all VA loans have allowable and non-allowable fees. These non-allowable fees, in particular, means that there are limits to what lenders can charge you at closing. But, in general, you should still plan on saving up at least 3-5% of your loan amount in order to pay for your closing costs. If you want a more exact amount, you'll need to get a loan estimate from your lender.
Now, what if you don't want to delay getting a VA loan while you work on saving 3-5%? Well, you might be able to roll in one or more of your closing costs into the loan amount, which would allow you to pay them off over time. Just be aware that you'll end up paying interest on whatever costs you roll in.
=====================
Give us a call today! 844-326-3305
Not ready to call? Text us! 385-257-3266
=====================
Like, subscribe, and follow us to stay connected with the latest VA home loan info.
KZbin - / lowvarates
Facebook - / lowvarates
Instagram - / lowvarates
Twitter - / lowvarates
Pinterest - / lowvarates
This video is not intended for residents or homeowners in the states of WA, NY or MA.
Low VA Rates NMLS# 1109426 Archived video notice: This video is not current and may contain content that, while accurate when recorded, may not reflect current market conditions. As is customary on the KZbin platform, older videos remain in our account for transparency and statistical purposes, and we do not necessarily have control over which older archived videos KZbin’s algorithm may suggest for you. For that reason, please always check the date of a video to ensure that it is dated recently before relying on its contents. The mortgage market is very dynamic and laws, regulations, rates, and programs are always changing. If we have a more up-to-date video on the same subject, you should be able to sort our videos by date uploaded on our main channel landing page: / lowvarates . This video is not applicable to borrowers in the State of Washington.
This video is not intended for residents or homeowners in the states of NY or MA.

[@chrislopez5287]

Refinanced with low Va rates through IRRL for my va loan. Went from 6.125 to 2.75! Closed last day of 2020.

[@lowvarates]

We love hearing success stories! Congrats

[@andyrooney4470]

I wore red last Friday in Los Angeles like you said... and I got shot at.

[@lowvarates]

I hope you ran, ducked, took cover. Glad to hear you survived. #redforthewin!

[@pamelafox5882]

If you really got shot at, I'm so sorry but glad they missed you, if it was a joke, it was a good one 👍🏻😊

[@johnhouston8801]

Thank you for all your helpful videos, do you guys operate in Texas?

[@lowvarates]

Yes we do. We would love to help you

[@ndayembidi6781]

You look like JOHN CINA, 😂😂😂😂😂😂😂😂😂. IS JOHN YOUR BROTHER? ahahahahahahahhah

[@lowvarates]

I am his father!!!! Hahah.

[@mentaltoughness6365]

You dont have to pay closing cost the seller can pay the closing or it can be half and half

[@lowvarates]

In a buyers market you are absolutely right.

[@RealDealWillieWill]

When do you need your loan estimate? Before you find a property or after you already made an offer?

[@lowvarates]

You will not get a loan estimate until after you have found a property and then officially started the loan process.

[@RealDealWillieWill]

@@lowvarates excellent. Thanks much.

[@prayonkreutz2398]

What is "Title-Lenders Coverage Premium" & "Title"- Owners Coverage Premium (optional)???

[@lowvarates]

What is the difference between a lender's policy and an owner's policy? This lender's policy protects the lender's investment against any title issues that arise and impact the lender's interest in the property. It does not protect the buyer. In contrast, an Owner's Policy provides protection for as long as you or your heirs have an interest in the property. They are not optional if you are getting a mortgage loan.

[@JonWick45]

VA doesn't allow you to pay for termite inspection.

[@lowvarates]

The lender or seller would almost always pay for that.

[@blitzb4]

Is it still 2.3% funding fee for 1st time VA borrowers as of 10/14/22?

[@lowvarates]

Yes

[@larrybacon3985]

HOW CAN YOU BE CONTACTED TO BUY MY FIRST HOME ? I AM IN THE PHILIPPINES AND WANT TO LIVE BACK IN THE USA. IS EMAILING OK ? LOVE YOUR VIDEOS. HUGE HELP

[@lowvarates]

Email, live chat on our site, text. We work with our oversea service members a lot

[@benspurgeon6273]

I’m buying a new construction home in the preapproval it shows that the origination fee in 2.1%. Can they charge that much for the origination fee. I’m 10% disabled so I won’t have to pay the funding fee.

[@lowvarates]

They cannot charge that if you are using a VA loan for the purchase loan.

[@salvadorsalas533]

Any chance you guys operate in Los Angeles?

[@lowvarates]

Yes we do! We even have a local expert in the LA area. How can we help?

[@jcron27]

What would a mortgage payment look like with 0 down on a 200k loan?

[@adamt67]

If I could guess, based on a quick calculation... somewhere in the neighborhood of $950-$1200 based on credit and taxes.

[@lowvarates]

lowvarates.com/va-purchase-calculator you may find this helfpul

[@justthinking_6513]

We were happy we paid closing costs out of pocket.

[@lowvarates]

It’s great when you can do that

[@DINSTAAR-FPV]

Great info, big help!

[@lowvarates]

Thanks

[@davidgalloway2305]

Help... Can you guide me as at 100%. I need help with straighten my credit and down/closing cost. Am I waived closing cost???

[@lowvarates]

Your VA funding fee is waived so you will not pay that fee. No veteran, disabled or not, ever has to put money down on a VA loan. You will need to bring all closing costs in cash to closing. There are ways to have the lender pay for all your closing costs if that’s something you prefer.

[@jameso.4381]

So VA will allow funding fee costs in the thousands of dollars to be rolled into the loan, and have the lender fund it; however, they won't allow a single penny over appraised value to be rolled into the loan. VA gets away with it because they're backing the loan? Sure, but they're just backing a percentage of the APPRAISED value, not a penny more. VA is making money hand over fist off of every non-disabled veteran's VA loans across the country!

[@lowvarates]

I agree to an extent. They are FLUSH WITH CASH. Fha lowers their fha premium from time to time when they sit on too much cash. VA should consider lowering funding fees. The sad part is they just increased the funding fees to pay for areas of the VA that have nothing to do with loans.

[@MichelleBT]

Thank you for your service 🇺🇸 and your videos

[@lowvarates]

Glad you like them! Thanks for watching!

[@luisriba8082]

Q: if you have disability and you get the Funding fee waived, what would be the closing cost be?

[@lowvarates]

That all depends on your loan size, the rate you chose, if you’re doing a purchase or refinance etc. Generally your total closing costs without the VA funding fee will range from 1%-4% of your loan amount.

[@bz6040]

Eric, i was going to start the process w low VA rates this yr however, im quitting my job soon and using my GI bill to go to barber school. With BAH im gonna be making more than my previous employer paid me monthly. Do i still qualify with my 2 old w2s from employer OR do i have to wait to now file 1099 3 yrs in a row ? Thanks

[@lowvarates]

yes you will need 2 yrs of self employed income to get a loan with VA. Congrats on the risk of starting your own thing. I love entrepreneurship!

[@bz6040]

@@lowvarates thank you for the reply and yes I love it also! I can’t wait to start the process with your company in 2 years then. #Redfridays

[@muddyguns]

Bro...go cyber security

[@bz6040]

@@muddyguns still have 2 yrs worth of free tuition i haven’t used , I’ll look into that thx

[@muddyguns]

@@bz6040 Do it. You won't regret it. I make over 127k / yr. Started 5 years ago. Took 3 classes. A+, Net+, Sec+. Check it out

[@summerbreeze6075]

Thank you for your service and thank you.

[@lowvarates]

Our pleasure!

[@canaryveteran]

Colby Jones here it is I found his email bragging about himself and the 250 but he had nothing to bragging about cuz EVERYONE beat him and he lied about the 250 bucks

[@lowvarates]

Please send me the email. We do lose, we do send the $250 so this is concerning. You can reach out to me directly at eric dot kandell at low va rates dot com

[@dewismi]

Thank you for your service 🙏 and thank you for the video 🙏 very helpful

[@lowvarates]

Thank you too! I did not personally serve, but love the military.

[@PapaLee_]

The va doesn’t require credit score ? I thought the minimum was 660???

[@lowvarates]

Lets try to clarify for you. You are correct, the VA DOES NOT have any rule, regulation or statement suggesting that a credit score has to be a certain minimum level/standard. Now, we have videos you may find helpful about "Lender Overlays." So lenders can add their own rules over and beyond what VA requires, since it is the lender lending out the money, NOT THE VA. Our current overlay is a 620 but that will likely keep dropping and may go away completely as we get fully back to normal after Covid.

[@davidsetzer1469]

@@lowvarates is this for real you just need a 620 everyone has been saying 640

[@haykandell]

@@davidsetzer1469 Well that is our minimum required yes. Just having a 620 will not get you a loan, you have to have the income, employment etc, but YES to our minimum being 620

[@davidsetzer1469]

@@haykandell awesome just sent yall a req. Ive been recovering from a bad 6 mos after getting out of the Military money is there and now the credit is finally there.

[@canaryveteran]

Also They were trying to charge me 10K over what everyone else tried and in the long run I had a zero down payment from a real company that actually cared about vets

[@lowvarates]

Glad you got taken care of when it was all said and done. That is the most important

[@honeydominicana6822]

You talk to much! Dang it!

[@lowvarates]

Hahaha. That’s awesome. Well I can’t please em all. I’ll try to be shorter on some of the next ones.

[@canaryveteran]

I saved 10k by not using yall

[@lowvarates]

Happy to hear your shopping paid off.

[@lowvarates]

@William Simmons I thnk you asked Crux 173, lets see what he says. William we would love to do your loan if it is not with us now.

[@Xtremeproducts]

Who did you use?

[@canaryveteran]

@@Xtremeproducts Mr cooper

[@canaryveteran]

@@Xtremeproducts Also ask for Pouria he's a cool dude. Let him know that Eli sent ya we both might get something idk

[@prawnstar502]

Zzz give me a damn estimate number..

[@lowvarates]

3% of the loan amount is a safe estimate.