January 15, 2018
Orion’s brokers know that the mortgage application process is notorious among their clients for being tedious, time-consuming and downright laborious. But it doesn’t have to be that way. In fact, Orion’s experienced brokers advise their clients that if they start early and prepare properly, obtaining a mortgage is easier than it looks.
They will tell borrowers, “If you know a home purchase is on the horizon, start readying yourself and your credit early. A broker can help ‘pull’ your credit report (you can obtain one of these free every year), and tend to any issues. If you have a low score, start paying down your credit card debts and loans to reach lower balances. Your debt-to-income ratio will play a big role in the mortgage rate you’ll qualify for, so this step is crucial. Avoid opening any need accounts or making big purchases right before you apply.”
Brokers know that generally, a good rule of thumb is “the 28/36 rule,” which says the total monthly mortgage payment should exceed 28 percent of one’s income, while total debts shouldn’t exceed 36 percent. Clients are advised to keep this in mind as they apply for a mortgage and scout out homes.
Orion’s AEs often tell clients that if a client thinks they’ll need a monthly payment on the lower end, work to build up their savings before applying. Of course, the more that is put down at the outset, e.g., the lower the loan-to-value, the lower the payment will be.
Orion needs paperwork to evaluate the financial health and viability of a borrower. Brokers help their clients start gathering recent pay stubs, bank account statements, the last two years of tax returns and statements for any savings account or investments. Borrowers should go through all their statements and note any large deposits or charges. Lenders will likely ask them to explain these items as they go through the application.
Once you’re ready to apply for a mortgage, work with your Orion AE to find the best loan. We offer a wide variety of programs and rates, and we’ll work together and find the best possible deal for your client’s finances.