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Fees are associated with all home loans, but there are a few VA loan fees that you might not be aware of. Your lender will let you know if you can incorporate the fees into the loan or if you need to pay them up front.
VA Loan Fees Associated with a Third Party
The lender will review your credit report to determine if you qualify for the home loan. The bank is charged for each credit report that they request, and it is allowed to forward the cost of the credit report to the borrower. If you are refinancing your VA loan, you can save on interest by sending the payoff payment of the original loan using Federal Express. The overnight service fees will also be your responsibility. The borrower must also pay fees related to flood zone information, according to the location of the home.
Fees Charged Directly by the VA and the Lender
The VA charges a VA funding fee to help limit the overall costs of the loan and a one- time Mortgage Electronic Registration System, or MERS registration fee. The lender is also allowed to charge a flat fee of 1% to cover their costs of working with the VA. Borrowers may also be charged local variance fees provided the VA approves the fees in advance.
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