Why are my closing costs so astronomically high? Can they be reduced?

Home price: $192,000
Closing costs: $19,783

It’s a VA loan and we are buying in Pennsylvania.

I was fully prepared to pay 5% of the purchase price in closing costs, but this is over 10%. Is there any way to get any of these costs down? I’ve looked at dozens of examples and it just seems so far out of range.

Here is the breakdown:

A. Loan origination fee – $999

B. Things you cannot shop for
– appraisal – $450
– credit report – $63
– flood certification -$10
– reinspection – $125
– VA funding fee – $4284

C. Things you can shop for
– closing protection letter – $125
– copy fee -$25
– courier/delivery – $50
– E-doc – $50
– electronic recording – $14
– endorsement – $300
– examination – $300
– lender’s coverage premium – $1544

E. Taxes
– recording fees – $344
– transfer tax – $3840

F. Prepaids
– homeowners insurance – $1000
– prepaid interest – $375

G. Escrow
– homeowners insurance (83.33 x 4 months) – $333
– property taxes – (416.67 x 13 months) – $5417

Other
– owner’s coverage premium – $100

I understand the VA funding fee is driving this up, and I was expecting to pay that as well. But even excluding that, we’re at 8% in closing costs. Is this normal?



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