Loan origination is the initial process in the mortgage lending industry where borrowers apply for a loan, crucial for financing significant purchases such as homes. This process requires borrowers to submit various financial documents, including tax returns, payment histories, and bank statements, which help lenders assess their loan eligibility and determine appropriate interest rates. During this phase, lenders evaluate the borrower’s creditworthiness and may charge origination fees, typically ranging from 0.5% to 1% of the loan amount, to cover application processing and underwriting costs. Loan origination not only sets the loan’s terms and conditions but also significantly impacts the borrower’s financial obligations and journey.