Offer

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.

Origination

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 proposed 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

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.