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.
Letâs take a closer look at some of the costs and fees that can be associated with getting a VA purchase loan. closing costs Reasonable closing costs may be charged by the lender. 1  These costs may not be included in the loan. The following items may be paid by the veteran purchaser, the seller, or shared. Closing costs may vary among lenders and also throughout the nation because of differing local laws and customs and can include: 1  Loan origination fee (usually 1 percent of the loan), 2  Credit report, 3  Discount points, 4  Title search and title insurance, 5  Recording fees, 6  State and/or local transfer taxes, if applicable, 7  Survey,