"O" arranged origination and financing descriptions that you may or may not have seen while purchasing a home or while reading articles in this directory.
- Indication by a potential buyer of a willingness to purchase a home at a specific price; generally put forth in writing.
- Original Principal Balance
- The total principal owed on a mortgage prior to any payments being made.
- The process of preparing, submitting, and evaluating a loan application; generally includes a credit check, verification of employment, and a property appraisal.
- Origination Fee
- The charge for originating a loan; is usually calculated in the form of points and paid at closing. One point equals one percent of the loan amount. On a conventional loan, the loan origination fee is the number of points a borrower pays.
- Owner Financing
- A home purchase where the seller provides all or part of the financing, acting as a lender.
- Ownership is documented by the deed to a property. The type or form of ownership is important if there is a change in the status of the owners or if the property changes ownership.
- Owner’s Policy
- The insurance policy that protects the buyer from title defects.
"Single Family Buying Glossary." HUD.gov. U.S. Department of Housing and Urban Development, n.d. Web. .