I have been approved for a VA loan. I have been given a good faith estimate from a lender. The home we are buying is a new construction house for
$230,000. The total closing costs we are being charged is $10,685. Of those closing costs, I noticed that we are being charged some 'unallowable' fees such as
the processing fee and underwriting fee. I have found in writing that these are 'Non-allowable' costs. What should I do? What if the lender refuses to take off
these fees? Any help would be much appreciated.
Dear Mr. Bryan Lang,
An underwriting fee is ok if it is customary charge. The VA actually reviews the details of the loan, so, if something is not
correct, they usually fix or adjust it before the loan closes.
The VA does not allow junk fees. Part of the high closing costs are the VA funding fees.
They are normally higher the greater the loan amount in relation to the value of the property. The 800 section on the HUD show the actual lender fees. The other
fees probably would not change much between lenders on other sections of the HUD.
Hope this helps with your question on closing costs.
forward to working with you!
Randy Matthew, CFP
Old Cypress Mortgage Co. 8:30 AM-5:30 PM