| Whether you are applying for VA loan or any | | | | is a list of fees that CANNOT be charged to a |
| mortgage loan, a borrower has to pay the closing | | | | veteran: |
| costs. But what exactly are you supposed to and not | | | | Document preparation, loan closing or settlement, |
| supposed to pay? If you've already began your | | | | attorney services for anything other than title work, |
| research, you will notice words such as allowable and | | | | preparing loan papers for conveyance fees, locking in |
| non-allowables. Veterans applying for VA mortgages | | | | interest rate services, photographs, stationery, mailing |
| or loans are only supposed to pay the "allowables." | | | | or postage charges, telephone calls, amortization |
| David Reed, columnist for Realty Times and Mortgage | | | | schedules, general overhead, membership, escrow |
| Originator magazine, has created this easy to | | | | charges or fees, document preparation and / or |
| remember mnemonics (ACTORS) about the allowable | | | | assignment, notary, loan application, processing, loan |
| closing costs for veterans: | | | | broker or finders fee other than your mortgage |
| Appraisal (aka Notice of Value, NOV) or inspection | | | | company, trustee's fees or charges and tax service. |
| charges | | | | Although a lender is not supposed to charge for |
| Credit report fees | | | | non-allowables, there is such a thing as a "One percent |
| Title or title-related charges | | | | Guideline." This simply means that even though there |
| Origination fees and points | | | | are non-allowables, "the lender is allowed to charge a |
| Recording charges | | | | flat one percent of the loan amount and apply that fee |
| Survey fees if needed | | | | to the various miscellaneous lender charges the |
| Now that you have an idea of what the allowables | | | | veteran may not otherwise pay for," according to |
| are, let's take a quick look at the non-allowables. Here | | | | Reed. |