There's a lot more to closing your real estate deal than signing on the dotted line. In addition to the price of the home, there is the price of the deal. These are often called the "closing costs" of your transaction and they cover many things.
Many veterans think their VA loan will cover their closing costs. Well, not technically...but there are ways your VA mortgage contract can be structured to achieve that same effect: minimal to no closing costs.
Closing costs and pre-paid expenses can vary widely; 3% - 5% is the range for most places. You can get a more specific estimate by asking your lender for a Good Faith Estimate for any particular property.
Your VA Home Loan will cover the home's purchase price or appraised value, whichever is less (plus the VA Funding Fee). So if you want your closing costs covered by the loan, you need to increase the home price and stipulate in the contract that the seller will pay all closing costs and pre-paid expenses in an amount equal to the increased home price. It's all legitimate - as long as the home appraises for the increased price, your closing costs are paid as part of the deal.
WHAT ARE SOME CLOSING COSTS YOU CAN EXPECT?
Additional fees that comply with local laws may be chargeable only if authorized by VA, only if normally paid by the borrower, and if the VA considers them to be reasonable and customary. That way, the VA makes sure you're covered, and no unnoticed charges are included at the last minute.