What is Origination?

Origination is the process of creating a home loan or mortgage. During this process, the loan recipient is obliged to submit various financial information (such as tax returns, prior paychecks, credit card information, bank balances, etc.) to the mortgage lender. The mortgage lender uses the information to assess the loan recipient's financial means (loan eligibility) to draft the type of loan the lender can give and what interest rate can be enforced, so that the recipient would be able to repay the loan if their financial situation remained constant.