Which item below is typically added to the original loan request, thereby increasing the principal amount of the note?

The correct option relates to the typical practice within the lending process. When a lender finances insurance premiums, these costs can be added to the principal amount of the loan. This means that the total amount that the borrower owes is increased to include the financed insurance premium, making the payment structure higher than just the loan amount alone.

In contrast, while finance charges and credit report fees are associated with the overall cost of borrowing, they do not typically increase the principal amount of the loan itself. Finance charges are generally assessed as costs over the life of the loan rather than being added to the principal upfront. Similarly, credit report fees are often considered separate transaction costs or fees rather than being incorporated directly into the loan amount.

Thus, among the provided choices, insurance premiums financed by the lender are the most accurately defined aspect that increases the actual principal, supporting the conclusion that this choice is indeed correct in the context of Regulation Z and Truth in Lending guidelines.