Closing Costs a VA Buyer is Not Allowed to Pay In Colorado
There are certain fees a VA buyer is never allowed to pay. Keep these fees in mind when negotiating contracts. These fees include:
- Pest Inspection
- Attorney Fee Charged as a Benefit to the Lender
- Mortgage Broker Fee
- Agent Commission
- Prepayment Penalties
- HUD/FHA Inspection Fees for Builders
The buyer is also not permitted to be charged certain fees when an origination fee is charged by the lender. Refer to these fees when working with the lender and title company.
- Second appraisal - VA buyers can only be charged for one appraisal per transaction
- Settlement fee, escrow fee, closing fee
- Document preparation fee
- Underwriting fee
- Processing fee
- Application fee
- Attorney fees for something other than title work
- Assignment fee
- Copying fee
- Email fee
- Fax fee
- Photographs
- Postage fees
- Amortization schedule
- Notary fee
- Commitment fee
- Trustee fee
- Trust in lending fee
- Tax service fee
Please keep in mind this is not an all inclusive list. There may be other fees the buyer can't be charged for by the lender, title company or investor.
Second appraisal should not be confused with a re-inspection. Re-inspections are required when repairs are made to bring the property up to VA standards. Buyers are permitted to pay the re-inspection fee.
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