November 18, 2019
Our brokers love to hear, “The underwriter has signed off on all the conditions, and your client is approved!” (Sure, some of this occurs electronically, but the effect is the same.) And Orion’s brokers love saying it to their clients. Unlike many internet lenders, Orion specializes in working closely with brokers during the loan process, starting with approval. Are you worried about having your client’s mortgage approved? Orion offers some tips for improving your chances of financing your client’s dream home.
Before even applying for a mortgage, with the help of their broker a potential client should check their credit score and see if the house goals match the numbers, as a credit score gives Orion and broker an idea of the likelihood for repaying debts. Additionally, experienced brokers will advise borrowers in ways of boosting their credit score to give them the best possible mortgage rate. This can be done through refraining from opening new credit accounts, making monthly payments on time, and paying down the balances on current credit cards.
At that point, it is prudent to look into getting preapproved for a mortgage, which involves Orion looking at verified bank statements, W-2s, pay stubs, and tax returns to determine just how much house one can afford. It is then prudent for a borrower to be prequalified by verbally informing the broker financial facts, including credit score, monthly and annual income, and other bank statements. Both a preapproval and a prequalification will help your client and their real estate agent choose a reasonably affordable house based on your financial characteristics.
Calculate a debt-to-income ratio. This is second nature to brokers. DTI is the percentage of monthly pre-tax income one has to spend on monthly debt payments plus the projected monthly payments for your client’s new home. Most programs want the ratio to be 36 percent or less. The lower the ratio, the more likely your client will qualify for a mortgage. That said, Orion has some dynamite programs to help borrowers whose DTI is high.
As your loan goes through Orion’s process, you may be called on to request updated or new information depending on various circumstances from your client. This is perfectly normal. A sudden large deposit may need to be verified. People whose names have changed at some point recently may need to document it. Regardless of the reason, Orion’s AEs will walk you through it.
Following the above five steps can be very beneficial in providing your borrowers with clear ideas of the homes they will be able to shop for. And Orion has talented, on-site AEs to assist a wide variety of borrowers with laying the groundwork for a loan approval, processing the loan, and funding it to get you in their home as soon as possible with the broker’s help.