I am in the military and I’m in the process of closing on my first VA home loan. I hear that servicemembers and veterans do not have to pay many of the closing costs associated with a typical closing. How do I know what I should pay and what I should not pay?
The VA program does have limits on fees, compared to many other mortgage loan programs.
Three business days before closing, your lender provides you with a form called the Closing Disclosure. This form lists all the fees associated with getting the loan and breaks them down into categories to clearly indicate who pays what fee. Page 3 of the Closing Disclosure shows what fees you are responsible for and how much money you need to pay to close on the loan.
It’s a good idea to bring your Loan Estimate, Closing Disclosure, and any other loan documents to your Legal Assistance Office for review. If that’s not possible, you may download a pamphlet that explains your fees from the VA’s home loan website. If you still have questions or concerns, call your regional VA office or call the VA main Home Loan information line at (877) 827-3702 for assistance.
Note: You won’t receive a Loan Estimate or Closing Disclosure if you applied for a mortgage prior to Oct. 3, 2015, or if you're applying for a reverse mortgage. For those loans, you will receive two forms – a Good Faith Estimate (GFE) and an initial Truth-in-Lending disclosure – instead of a Loan Estimate. Instead of a Closing Disclosure, you will receive a final Truth-in-Lending disclosure and a HUD-1 Settlement Statement. If you are applying for a HELOC, a manufactured housing loan that is not secured by real estate, or a loan through certain types of homebuyer assistance programs, you will not receive a GFE or a Loan Estimate, but you should receive a Truth-in-Lending disclosure.
