What is an Origination Fee?

Answer:

When you take out a loan, oftentimes there is an origination fee, or a processing fee. This is a one-time fee that helps lenders cover the costs of processing the loan, like paying for the credit check or labor for the time it takes to set up the loan.

Never trust a company that requires you to pay them before they deposit the funds in your account!!! This is a common practice for scammers. Reputable companies will deduct the origination fee from the loan amount. For instance, if you take out a $1000 loan with a $50 origination fee, $950 will be deposited into your account.

Official Answers from: