Origination Fee
An origination fee in real estate is a charge imposed by a lender for processing a new loan application. It is typically expressed as a percentage of the total loan amount and is intended to cover the costs associated with evaluating, processing, and approving the loan. Origination fees are common in mortgage lending and may include expenses such as credit checks, underwriting, administrative tasks, and document preparation. This fee is usually paid upfront at the time of closing or may be rolled into the loan amount, increasing the borrower’s overall debt.