VA Loan Origination Fees: Beginning with the Truth
It's said that it's always better to tell the truth. It's also said that some people can't handle the truth. The truth will set you free...Truth be told. However you say it, we all deserve the truth. Here is the truth of the matter...VA LOAN ORIGINATION FEES STINK! For well over half a century, Veterans have been paying far too much in origination fees for VA loans. All the while brokers and mortgage companies have continued to get richer off of of them. You see, VA Loans along with other types of government loans such as FHA or USDA are more profitable than conventional loans. Veterans just like you pay THOUSANDS of dollars in origination fees to brokers and mortgage companies for each VA loan they originate. Why? They tell you that's the way VA works? You don't know any different? That's just the way it's always been? You like giving money away?
Can we think about this for a second?
If you're refinancing, that VA loan origination fee comes out of your equity. This in turn raises your loan amount and payment. Not to mention, what if life changes on you and you need to sell your house? How will you get that equity back. The same goes when you buy a house. The lender might try to tell you that you don't have to pay for it. The seller will "pay for the VA loan origination fee along with the other fees" out of the closing. The truth is, YOU pay for it and then some. The seller is just going to increase your purchase price to cover it. In both cases, you're going to have to make that up sometime before you sell your house. Of course, if you don't have the seller pay for it, guess who's pocket it comes out of? In the end, does the lender care? They've made their money.
How to Get the Word Out and Help?
How does one Loan Officer reach out to the millions of US Military veterans in America and overseas and offer VA loans with no origination fees? What ways could there be to show everyone that there are lower rates available for VA loans and even though there's no origination fee, the rate is still lower than 95% of the tens of thousands of lenders that actually do charge VA loan origination fees?...Mailers? Ugh! People hate mail. What about telemarketing lists? That's even worse. Telemarketers actually might rank higher than mail for "Things we could live without". So how does one get the word out to veterans that they no longer have to pay origination fees for their VA loans?...that there is someone that can help?