The Charges section of a loan is used to record all charges related to the loan outside of principal and interest payments. This includes charges like origination fees, processing fees, wire fees and legal fees, but can be anything charge that is relevant to your lending that you charge borrowers.
It is important to note that charges related to closing should be applied and recorded paid on the loan before your borrower's regular payments begin, if they were collected at closing. After regular payments have been recorded on the loan, you will not be able to predate those closing charge payments.
Recording a Charge
Open the loan details page.
Click on the Charges tab.
On the Charges tab, click the blue Add Charge button on the top right hand corner of the page. The Add Charge modal will display.
You'll need to enter the following information regarding your charge:
Payable To
Which vendor will receive this payment? The broker (you) will be suggested by default.
Date
The date associated with the charge.
Due (Date)
The due date payment is required from the borrower, if different from the charge date. This field can be left blank.
Description
Give the charge a name.
Amount
What $ amount is associated with the charge.
Click Save. Your charge is now added and will display in your charges section.
Once charges related to closing have been added to your charges section, you can record the payments against those charges to close. To do so, navigate to the payments tab and record payments as 'other' payment type, 'other' method, and set the distribution of those payments as the charges you just created. You can read more about how to record payments here.