Closing Costs Associated With VA Home Loans | Veteran News

Personal finance experts and VA representatives alike encourage borrowers to start preparing financially for a home loan long before they start hunting for properties in their local real estate listings. One common mistake some house hunters make in the early days of their home loan planning is assuming that all costs can--or should--be financed into the VA mortgage loan amount.

Paying some fees up front is required, and while other expenses may be permitted to be included in a VA mortgage, it doesn?t always make good financial sense to do so. Paying some costs up front can keep mortgage payments lower than if those costs are rolled into the loan amount.

But what are those fees and expenses for VA mortgages? The Department of Veterans Affairs Phoenix Regional Loan Center publishes a list of expenses commonly associated with VA loans. This list is not a complete list of every expense you might need to pay, but it?s a good way to start planning and budgeting for the fees you might wish to or be required to pay up front:

VA Loan Origination Fee
Discount Points
Appraisal Fee
Credit Report Fee
Prepaid Taxes and Hazard Insurance
Title Examination Fee
Title Insurance Fee
Flood Zone Determination
Environmental Endorsements
Compliance Inspections (for VA-guaranteed new construction loans)
Recording Fees
VA Loan Funding Fee (not applicable for eligible veterans with service-related medical conditions)

As you can see, there?s a variety of costs and expenses. Some borrowers wonder what happens to certain fees if the loan does not close or they decide not to purchase. In some cases, the fees are non-refundable as they are for services rendered. A VA appraisal must be paid for regardless of the outcome of the loan. A flood zone determination may also be non-refundable as it, too is a service rendered without consideration of the outcome of the loan. However, these services may not be charged twice--if a flood zone determination on a property has already been made, for example, that determination applies to the new loan. Appraisals are different--they have expiration dates and are not considered ?permanent?. If an appraisal is allowed to expire, a new one is required for the most up-to-date data.

Source: http://www.valoannews.com/veteran-news/closing-costs-associated-with-va-home-loans.html

girl with the dragon tattoo ohio state basketball collateral dick cheney heart umf peter frampton elite eight