Borrowers Should Know About the Origination Fee

Borrowers Should Know About the Origination Fee. What Everyone Should Know About Closing Costs

Borrowers Should Know About the Origination Fee video duration 34 Second(s), published by FHAdotcom on 22 12 2017 - 17:41:43.

The origination fee is the charge applied to a borrower to pay for the process of a mortgage application and for creating the home loan
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Probably one of the most important videos a consumer can watch before obtaining a mortgage loan You probably heard the term “loan origination fee” as you fish out loans to apply for
The fee itself can be negotiable
Moreover, the more money you want to Home loan closing costs include a number of expenses that can sometimes come as a surprise to borrowers
Origination fees, taxes, and escrows are just a few .

The origination fee is the charge applied to a borrower to pay for the process of a mortgage application and for creating the home loan. Quoted as a percentage of the total loan amount, origination fees are usually 1 percent of the mortgage.

The origination of a mortgage loan includes everything it takes to put the mortgage in place. The process begins when you submit the loan application along with the supporting documentation of paystubs, employment history, etc. It includes your loan officer—the “loan originator” who initiates and works to complete the loan—pulling up your credit score and submitting all the information to an underwriter who ultimately determines whether you qualify for the loan.

The origination fee is also seen as a mortgage point to be paid to the loan originator at the closing of the mortgage transaction. The fee is similar to other commission-based payment and works as the loan originator’s payment for selling you the loan.