VA Loan Closing Costs ⭐️ VA Loan Fees at Closing
In this video we talk about some of the VA loan closing costs and what you can expect at the time of closing on your VA home loan. If you have a question about VA loan fees give us a call at ⭐️ (855) 956-4040. ⭐️
LOAN ORIGINATION FEE
This is a fee to cover administrative costs for processing your loan. This fee is usually 1% of your loan amount. For example, if your home loan is $100,000 the origination fee will be $1,000.
LOAN DISCOUNT POINTS
Discount points are an option if you would like to get a lower interest rate than the current mortgage market rate. Up to two discounts points or 2% is considered to be a reasonable charge. Discount points may be paid by either the buyer or seller.
This fee varies but is generally between $50 to $65. You can expect most lenders to collect this fee as soon as you apply. Keep in mind that this fee is non-refundable even if the loan never closes.
The average VA appraisal fee is an average of $400 – $500 for a single family residence. The appraisal determines the property value and maximum loan amount to be obtained without a down payment. You can expect to pay this fee at the time the appraisal is completed. This fee is non-refundable even if the loan never closes.
HAZARD INSURANCE AND REAL ESTATE TAXES
At the time of closing, the VA lender will collect advanced payments for (homeowners) insurance and real estate taxes. This is to ensure there will be ample funds set aside to pay the first year of taxes and insurance. These are commonly referred to as Escrow Accounts.
VA FUNDING FEE
The VA funding fee makes the VA loan possible. It is an insurance policy for the VA to help offset the cost of the Loan Guaranty program. The VA funding fee can vary depending on the loan amount and type of mortgage being financed. The funding fee is the only fee that may be added to the loan amount or paid in cash at closing. You may be exempt from paying this fee if you have a VA disability. Call us for more information.
The title insurance fee usually averages from $600 to $800 but may be higher based on local insurance rates and your loan amount. Title insurance is important to verify there are no outstanding liens against the property.
The recording fee usually averages from $20 to $100 depending on the location. This fee is charged for the recording of your deed for the county records.
National VA Loans
6505 N. Prospect Ave. Ste. 400 Gladstone, MO 64119