The right to buy or sell property or sign a contract, based upon certain terms and conditions. Usually applicable to specific time frames during which the "option" may be exercised.
Original principal balance
The total original principal amount due on a loan before any payments have been made
Origination
The process of preparing a loan application, verifying the information in it, and submitting it for review
Origination fee
A fee imposed by a lender to cover certain processing expenses in connection with making a real estate loan. Usually a percentage of the amount loaned, such as one percent.
Owner financing
A property purchase transaction in which the property seller provides all or part of the financing.
