Many lenders charge an origination fee on VA backed loans. VA materials describe a common flat 1% lender fee, though lender fee structures can vary and your Loan Estimate should show the actual charges for your loan.
What It May Cover
Origination charges can include lender work such as processing, underwriting, document preparation, and other loan making costs. Some lenders charge one flat origination fee, while others show separate lender charges.
Where To Find It
Review page 2 of your Loan Estimate. Look at the loan costs section, especially origination charges, discount points, lender credits, and services you cannot shop for.
Compare carefully: A loan with a lower interest rate may include more points or fees. A loan with fewer fees may have a higher payment. You need both rate and cost to compare.
Questions To Ask
- Is this a flat origination fee or itemized lender charges?
- Are any discount points included?
- Is there a lender credit offsetting some costs?
- How does this offer compare with another rate option?