Closing Package

CLOSING SUMMARY

Objective: To provide quick and correct processing of the Loan Guaranty Certificate. The following directives apply to the verification, documentation and processing of closed VA Loans. All questions and points of clarification should be referred to Chapter 8 of the VA Lender’s Handbook or our web site: http://www.homeloans.va.gov/handbook.htm

ALLOWABLE FEES AND CHARGES

(Lender’s Handbook, Chapter 8)

The following list of allowable items is published in 38 CFR 36.4312 and applies to all VA home loans.

1. VA Appraisal Fee
2. Appraiser Compliance Inspection
3. Recording Fees
4. Credit Report
5. Escrow Account (Taxes & Insurance)
6. Initial Hazard Insurance Policy
7. Survey
8. Title Examination and Title Insurance
9. VA Funding Fee
10. Authorized State and Local Fees
11. MERS Registration

Additionally the lender has the option of charging a flat 1% Origination Fee, or charging actual costs for the items listed below, so long as the total does not exceed 1% of the loan amount.

Assignment Fees	Application Fees
Notary Fees	Tax Service Fees
Warehousing Fees	Builder's 10 Year Home Warranty
Commitment Fees	Closing or Settlement Fees
Underwriting Fees	Document Preparation Fees
Photo Charges	Attorney Fees
Amortization Fees

Note: Termite Reports and Courier Fees are allowable charges to veterans only on refinances.