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With a VA Loan, using the $0 money down, are there any costs that i will have to pay?

Im curious to know if there are any *surprise* costs that i will have to pay once i close on a house. I know i have to pay to have my furniture moved, utilities etc. but is there anything else? do i  have to tip the broker?!??! i know it sounds silly but honestly my idea of what happens on *closing* day is what i see on hgtv.

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August 04 2010 - US
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No you don't need to ''tip'' the broker, he makes his money from the loan so don't worry about that.  Make sure to have your realtor ask the seller to pay all of your closing costs and prepaid items in the real estate contract and you'll be good to go.

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August 04 2010

You really shouldn't have any.  Prior to closing, you should plan to review the estimated HUD-1 (settlement statement) with your realtor & lender to confirm that the final numbers match your expectations.  Unless your realtor & lender did a spectacular job, a tip probably isn't needed.  :-)  One thought is to have a housewarming party, and allow them to host it for you.  Most lenders/realtors would be happy to do this, as it would give them the opportunity to earn some referral business from your friends & family.  Congrats on your new purchase and best of luck to you !

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August 04 2010
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doesnt the va loan pay for the closing costs or makes the seller pay for it?
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August 04 2010

There are closing costs on VA loans.  The seller must pay for the escrow fee.  The VA limits the charges the lender can charge and limits the amount an appraiser can charge to help keep your costs down.  You can have the seller pay all VA allowable closing costs (ask your lender for details on what is an allowable or non-allowable cost). 

The VA charges a fee called a Funding Fee.  It ranges from 0-3.3% depending on the type of loan, the size of your down payment, whether you were a reserveman or a full active-duty vet, whether it's your first or subsequent use and whether you receive VA disability benefits.  Be sure to talk to your lender about this if you do receive disability benefits because that is the only time your Funding Fee is 0.  I've heard of too many disabled vets paying this fee because their lender didn't ask.  

The Funding Fee is financed in your loan, so you don't pay it out of pocket but it does raise your payment and loan amount above the purchase price.  In my opinion, a small cost for a fantastic loan product.

Here are some good resources on VA loans:

http://www.zillow.com/va-loan/

http://www.zillow.com/blog/mortgage/2010/03/09/va-loans-and-the-home-buyer-tax-credit-for-veterans/

http://www.keaneloans.com/2009/08/18/va-loan-benefits-the-best-home-loan-everybody-forgot-about/

http://www.zillow.com/blog/mortgage/2010/01/23/who-pays-va-non-allowable-closing-costs/

http://www.zillow.com/blog/mortgage/2010/03/16/va-offers-host-of-ways-for-vets-to-avoid-foreclosure/

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August 05 2010
Oh, and I concur with Nic, do not tip your lender...  Everything your lender makes must fit within loan guidelines and compliance, so it's not even legal for the lender to take compensation outside the loan transaction.
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August 05 2010
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August 06 2010
 
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