verb (used without object), prorated, prorating. 1. to make an arrangement on a basis of proportional distribution. verb (used with object), prorated, prorating. 2. to divide, distribute, or calculate proportionately. Origin of prorate.
Origination charge: The VA allows lenders to charge up to 1 percent of the loan amount to cover origination, processing and underwriting costs. They can choose to either charge you a flat 1 percent origination fee, or pick and choose among a host of fees, so long as they add up to no more than 1 percent.
According to the VA, the borrower may pay for: 1  VA Appraisals (re-appraisals). However, the borrower may not be allowed to pay for appraisals by the owner to re-asses valuation. 2  Recording Fees and recording taxes. 3  Origination Flat-charge Fee (maximum one percent of the loan amount) 4  Credit Report (for the lender)