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.
There are a handful of costs that a VA buyer cannot pay, regardless of whether the lender is charging that flat fee. Those include a lenderâs attorney fees; mortgage broker fees; or prepayment penalties. If non-allowable fees enter the picture, they have to be covered by someone other than the VA buyer.