VA Loan-List of Fees You need to pay During a VA Loan Application


VA loans are offered to current and former members of US defense forces. They have been designed to benefit them in monetary terms and provide them with an opportunity to settle down and a sense of permanency. The loan provides lowest interest rates along with some very competitive options such as zero down payment and loan refinance using a VA loan.

Throughout the nation VA loans are available at some of the lowest rates to war veterans. VA loan rates in Texas agree with the national trend and bring to the defense personnel, a loan that can bail out any financial situation. The process of application for a VA loan is very smooth and includes nominal fees for a few processes that need to be carried out before a loan is approved. Here is a low down on the types of fees that expected along with the origination fee before the loan is disbursed.

VA Loan Processing Fees

Origination Fees

Origination fees is a part of the loan deal and is usually set at 1% of loan amount. Once the origination fees is paid, a veteran doesn’t have to pay closing fees on the deal.

Appraisal Fee

VA home loans, like other loans are approved only when the loan amount appraise for the full sales price of the home. For this process, an appraiser visits the property and his/her fees has to be paid by the veteran. Fees amount is approximately $300-$400.

Credit Report Fee

Credit report of an applicant is checked to make sure that the applicant will be able to pay his debts and EMI’s. Credit scores are rated from 300-850, with 300 defining a worst credit report. VA loan officials look for a credit score of 620-680 to sanction a loan.

Title Examination Fee

Title fee is charged by a title company during the closing of a loan. This is one of the crucial processes before a loan is approved. Title examination process takes care of investigating issues related to the title and makes sure that the property actually belongs to the person claiming it. Fees for title examination is $300.

Title Insurance

Title insurance is conducted during title search. The fee is almost equivalent to one EMI of loan installment and is split between buyer and seller. Attorney’s fees is added to this sum that typically is $300-$500.

Flood Zone Determination

All loans including VA loans needs the owners to clarify if the property lies in a flood zone. US government has divided the whole nation in zones based on their vulnerability to floods. Fee for flood zone determination is a nominal $15 and in some areas, even less.

Prepaid taxes and insurance

Prepaid taxes and insurance are the costs that the seller has already incurred and will be transferring to the buyer. These can be paid upfront or be added to the loan amount.

Property Inspection

Property inspection is one indispensable routine before a loan is sanctioned. It is performed both for the lender as well as the buyer. This inspection determines the current condition of the house and its worth in terms of loan application. Fee for property inspection is $300.

Recording fees

Recording is the process wherein the local administration would like to record the details of the transaction in a home sale. They record the seller and buyer details and other nuances like loan amount, lender involved, etc. fee for recording goes to the local county office and is approximately $50.


Expecting veterans to pay huge mortgages isn’t fair, given their pay scales and the kind of life they lead. That is the reason, US government devised the VA loans that have easy application process combined with waivered VA loan rates in Texas, for every process. All military personnel should know their rights and always approach a VA board proper guidance when they plan to invest in a property.

Darrick is a financial expert who has specialized in the domains such as real estate, mortgage and consumer finance. With his in-depth knowledge and vast experience of these industries, he has helped numerous financial and mortgage companies on operational restructuring and regulatory compliance issues. For the past few years Darrick has been writing regular columns to share his knowledge with the potential consumers and industry professionals by providing insights into the Veteran Affairs (VA) loan. His tips on VA mortgage are quite useful for military veterans, who are looking to buy their dream home to settle down.


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