Orion’s brokers are a valuable asset for clients. Namely, clients view you as being in “their corner,” and rightly so. As we wrap up the summer of 2024, think of how many people you’ve helped buy homes! When we talk to our broker clients about advice that you use when talking to clients, or potential clients, about buying a home, certain common, simple themes emerge that we want to share.

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First, brokers will tell potential clients to prepare their credit. Orion and other lenders typically require at least 24 months of good credit history in order for a borrower to qualify for a mortgage. It's normally a good idea to have a few credit cards, a few installment loans and a 24-month history of making rent payments on time. Your clients will hear sensationalist ads by companies pretending to ignore credit… but Orion’s brokers know better.

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Second, your clients should prepare their cash flow. What does that mean? Orion typically requires a 43% debt-to-income ratio, or less, in order to qualify for a mortgage. This means that your client’s total monthly debt payments (including the new mortgage payment) should be no more than 43% of their monthly income. This is one area where Orion’s brokers really add value to the process versus internet-based lenders.

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Third, and in a similar vein, your clients should be told to prepare their savings, and this is another area where brokers add real value to clients. Orion typically requires your client to have a certain amount of savings in reserve in order to qualify for a mortgage. Their savings should be in their account for at least three months in order to qualify, and any large deposits will need to be explained and documented.

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The amount of the required savings will vary based on the loan program that you help your clients choose. A good goal, however, is to save enough for a 3%-5% down payment, plus 1-3 months of mortgage payment reserves. For example, if your client’s new mortgage payments will be $1,400 per month, you should probably aim to save approximately $4,200 plus the amount of their down payment. And now, with the recent National Association of Realtor settlement implementation, clients may have to save more to pay for commissions.

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Of course, each of Orion’s loan programs has its own guidelines that may be different than what is outlined above. That's why the role of the broker is as important as ever. You can help your client consider their options and evaluate specific scenarios. Please contact your Orion AE for further information!

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