Mortgage 101Presented By Jo Ann Theriault-Fazio

• What is a preapproval and why is it important?

• Factors for Mortgage Approval– Credit, Income, Assets, Collateral, Equity

• Mortgage Types

• The Application Process

• Partner Exchange

Stuff We’re Going to Discuss

• Letter issued by a lender confirming that your financing is in order…Should be done PRIOR to looking at homes.

• Helps establish how much you can afford before looking so time isn’t wasted outside a borrower’s price range.

• Strengthens offers by instilling confidence in all parties (borrower/seller/listing & buyer’s agent/attorneys) that the deal can get to the finish line.

What is a Pre-approval and Why is It Important?

• How FICO score affects rate• Minimum score requirement• 3 different bureaus (middle of 3 or

lower of 2)– Equifax– Trans Union– Experian

Credit

• How do they get paid?

• How much do they get paid?

• “DTI”

Income

• Only 100% LTV option is VA

• Sourcing/Seasoning (“cash” not ok)

• Appraisal

• Gift

• “LTV”

Assets/Collateral/Equity

• Conventional

• FHA

• VA

• Jumbo

• USDA

• Fixed/ARM

Types of Mortgages

• Gather basic information (income/assets/credit)• Review situation with client• Discuss options• Issue Preapproval letter

The Application Process

• Ask BEFORE getting in car (if not preapproved)– Have a lender in mind?– General credit & financial history

• Set expectations / minimize issues– Milestones

• Attorney Review /application /appraisal /underwriting /approval /clear to close /close

– Be honest & complete– Provide 100% of information requested IN A TIMELY MANNER

Takeaways

• Cheaper– Standard lender fees ($990) waived

• Faster– Priority processing & underwriting

• Better– Cheaper + Faster = Better

Platinum Lending

Tools