Closing Costs for Spotsylvania Buyers: What to Expect on Your Closing Disclosure

Quick answer: If you use a mortgage to buy a Spotsylvania home, your lender must give you a Closing Disclosure at least three business days before closing. The five-page form shows your final loan terms, projected monthly payments, and closing costs, so you can compare them with your Loan Estimate and ask questions before you sign (CFPB).

If you are buying in Spotsylvania County, whether near Massaponax, along Route 3 or Route 1, or closer to I-95 and Fredericksburg, this is the form that shows what you will pay to close. The notes below are general information, not legal advice. Your lender and settlement agent will complete the actual figures for your contract.

What the Closing Disclosure is and when you get it

The Consumer Financial Protection Bureau describes the Closing Disclosure as a five-page form with the final details of the mortgage you selected, including the loan terms, your projected monthly payments, and how much you will pay in fees and other costs to get the mortgage. Those upfront fees are your closing costs (CFPB).

By law, you must receive the form at least three business days before closing. The CFPB says to use that window to resolve problems: if something looks different from what you expected, ask why (CFPB: When do I get a Closing Disclosure?; Closing Disclosure explainer).

The three-day Closing Disclosure rule applies to most closed-end mortgages. You will not receive a Loan Estimate or Closing Disclosure for a reverse mortgage, a home equity line of credit (HELOC), a manufactured-housing or mobile-home loan that is not secured by real estate, or a subordinate loan through certain homebuyer assistance programs. For a reverse mortgage, the CFPB says you should receive Truth-in-Lending disclosures plus a Good Faith Estimate and a HUD-1 or HUD-1A Settlement Statement (CFPB).

Compare the form with your Loan Estimate

The three-day window is also the time to compare the Closing Disclosure with the Loan Estimate you received earlier. The CFPB tells borrowers to confirm that the loan term, purpose, product, loan type, loan amount, interest rate, closing costs, and cash to close match what they were expecting, and to ask the lender immediately if they do not (Closing Disclosure explainer; CFPB).

Two loan features are worth a careful look because they change the deal you thought you had. A prepayment penalty allows the lender to charge a fee if you pay the mortgage off early. A balloon payment makes the last installment much larger than the regular monthly payments. If either appears, the CFPB says to ask your lender about other options (Closing Disclosure explainer).

Cash to close is the amount you need to bring to settlement after credits and deposits already paid. If closing costs were rolled into the loan, your cash due at the table may be lower, but the loan amount is higher and you will pay interest on those costs over time. If the loan amount increased, ask why (Closing Disclosure explainer).

Virginia recording charges that may appear

Some of the government fees on a Spotsylvania Closing Disclosure come from the Code of Virginia, not from your lender's price list. On most deeds admitted to record, Virginia Code § 58.1-801 sets a state recordation tax of 25 cents on every $100 or fraction thereof of the consideration of the deed or the actual value of the property conveyed, whichever is greater (Code of Virginia § 58.1-801).

A separate tax applies to most deeds that convey realty that has been sold. When the consideration or value of the interest, whichever is greater, exceeds $100, Virginia Code § 58.1-802 sets that tax at 50 cents for each $500 or fraction thereof, not counting any lien or encumbrance remaining at the time of the sale. The Code says this tax is paid by the grantor (typically the seller), but the grantor and grantee may arrange for the buyer to pay all or a portion of it (Code of Virginia § 58.1-802).

If your purchase is financed, a new deed of trust is usually recorded with the deed. Virginia Code § 58.1-803 imposes a recordation tax on deeds of trust or mortgages of 25 cents on every $100 or portion thereof of the amount of the bonds or other obligations secured by the instrument, with additional rules for refinances and very large loans (Code of Virginia § 58.1-803).

Cities and counties may also impose a local recordation tax equal to one-third of the state recordation tax (Code of Virginia § 58.1-814). Whether and how that local amount is collected on your Spotsylvania deed should be confirmed by your settlement agent, using the Virginia Supreme Court deed calculator that the Clerk of the Circuit Court points to (Spotsylvania Recordation Services; Virginia Land Record Cover Sheet / deed calculation).

Recording the deed in Spotsylvania

After closing, the deed and deed of trust have to be admitted to record with the Spotsylvania Clerk of the Circuit Court. The Clerk's recordation page says recording hours are Monday through Friday from 8:00 a.m. to 3:00 p.m., that the office requires a Virginia Land Record Cover Sheet for all documents to be recorded, and that documents must have original, notarized signatures. The same page directs people to the Virginia Supreme Court Deed Calculator to calculate recording costs (Spotsylvania Recordation Services; VLRCS).

Your settlement agent will usually handle the cover sheet, the calculation, and the trip to the Clerk. The useful habit for a buyer is to look at those government-fee lines on the Closing Disclosure before the three-day window runs out, and to ask for a breakdown if a figure does not match what you were told.

For help with a Spotsylvania purchase, see my Spotsylvania area page. If you are selling so you can buy, see how I sell homes.

FAQ

When do I get the Closing Disclosure in a Spotsylvania home purchase?

If you are getting a mortgage, your lender must ensure you receive the Closing Disclosure at least three business days before closing, so you have time to review the terms and costs and ask questions (CFPB).

What should I compare on the Closing Disclosure?

Check the loan term, purpose, product, loan type, loan amount, interest rate, closing costs, and cash to close against your most recent Loan Estimate, and ask the lender right away if something has changed (Closing Disclosure explainer).

Who pays Virginia's additional grantor tax?

Virginia Code § 58.1-802 says the tax is paid by the grantor, or someone signing on the grantor's behalf, but the parties may arrange for the buyer to pay all or a portion of it (Code of Virginia § 58.1-802).

How do I estimate Spotsylvania recording costs before closing?

The Spotsylvania Clerk's Office directs people to the Virginia Supreme Court Deed Calculator and requires a Virginia Land Record Cover Sheet. Ask your settlement agent to run the calculation for your deed and deed of trust (Spotsylvania Recordation Services; VLRCS).

Buying in Spotsylvania?

If you want a second set of eyes on a Loan Estimate or Closing Disclosure for a Spotsylvania purchase, request a home evaluation if you are also selling, browse the Spotsylvania area page, or call or text me at (540) 300-4967.

Ron Chronister, REAL Broker