How to Check Your VA Loan for Illegal Charges

Here's a guide to reviewing documents from the refinancing of your VA loan.  

First, find your HUD-1 Settlement Statement.  The document looks like this at the top.  

The VA allows the lender to charge a 1% flat fee.  Look for it on line 801 under LOAN ORIGINATION FEE.  If you were charged the 1% fee, the lender is not allowed to charge you attorneys fee or unreasonable closing fees.  

Then find the section called TITLE CHARGES.  

Look on line 1101 and 1107 and find out whether you were charged any fees.  You'll notice in our example the box on line 1101 and 1107 is left blank.  This should raise some questions.  If line 1101 or 1107 is blank, then where are the attorney or closing fees?

Now look at lines 1102 and 1103.  

This is where you'll find the TITLE FEES.  The lender is allowed to charge the veteran a reasonable fee for this service.  According to bankrate.com and other national data, the national average cost for Title work is between $125.00 to $200.00.  

You'll notice in our example, the TITLE EXAM cost $675 – well above the national average.  This HUD reveals that the lender illegally charged the veteran excessive fees.  

Your HUD-1 Settlement Statement may not look exactly like our example.  If you think you've been charged illegal fees or you have questions about your loan, give us a call at 404-988-9873.