What is the name of the fee charged by a lender to originate a loan?

The fee charged by a lender to originate a loan is known as the origination fee. This fee is typically a percentage of the loan amount and covers the lender's costs for processing a new loan application, evaluating the borrower's creditworthiness, and preparing the loan for closing. The origination fee is intended to compensate the lender for their administrative and operational costs associated with the loan creation process. This distinguishes it from other fees that may be involved in the loan process, such as the processing fee associated with managing the paperwork and the underwriting fee, which pertains specifically to the evaluation of the borrower's ability to repay the loan. Understanding the origination fee is crucial for borrowers as it is a significant component of the overall cost of obtaining a mortgage.