Agent Loan Tips
20 Quick Home Loan Tips for Agents
20 Quick Home Loan Tips for Agents
- It's the loan officer that makes the loan go smoothly -not the lender. More on that here.
- A buyer needs a very good, detailed, loan program specific, payment calculator. They are not all the same!! Many are inaccurate especially with property taxes and home insurance numbers. Find mine here.
- 2 main things to worry about on your transaction. The buyer's loan and the property condition and value. A good loan officer can reduce/eliminate the worry on the loan piece and even provide potential solutions --when needed--on the condition part.
- Today's current average mortgage rates by loan type and lock advice. Click here for more.
- Why most buyer pre-approval letters are lacking. And how to spot a bad one. Click here for more.
- As-is listing status means nothing to a lender or an appraiser -- Click here for my property and appraisal guides
- With a low or zero down home buyers the monthly mortgage payment factor is about $8 per thousand of sales price based on current rates and home insurance costs in our area. Click here for more.
- Use seller paid temporary rate buydowns to move a listing instead of a sales price drop. But you also need to know the maximum sales concessions allowed based on loan type and even LTV More on that here.
- Using an in house or office preferred lender? Watch out! Much like the recent NAR buyer commission action, this is a heavily scrutinized connection these days and the target of lawsuits, since the assumption is the buyer will pay a higher loan cost when steered to an in house lender. Search for DR Horton, Zillow, and Veterans United lawsuits to learn more. More on that here.
- Buyer's closing costs are often misunderstood with the buyer surprised during the transaction at home much they need. More here.
- Debt to income ratio explained. It's the #1 reason a loan is denied in underwriting. 80% of MLOs do not have a good grasp of income calculation rules and that means underwriters are constantly decreasing loan app income which leads to DTI issues. Click here for more.
- Unique property like manufactured housing have special rules you need to know ASAP. More here.
- The USDA rural housing loan is the best low/zero down loan program. But knowing the rules for this program is super important.. Click here for more.
- Loan qualifying puzzle explained. the 4Cs of loan underwriting. Click here for more.
- Understand mortgage rates and why they change. And what tricks many lenders use on home buyers. Click here for more.
- Be careful. Big brother is watching. Occupancy fraud is on all lender's radar. Stay in compliance and do not turn a blind eye to misrepresented occupancy. True second homes or investment (think Vrbo or Airbnb) that are being purchased as "primary" to take advantage of lower rates and easier qualifying is a felony for the buyer and even you --if you assist. Licensing revocation is also likely-and there goes your real estate career.
- Do not advertise monthly payments alone! I see agents and builders do this all the time--a big font monthly payment listed in the ad with no additional info or sometimes tiny obscure disclosures tucked away at the bottom of the ad. Either is a disclosure violation (Fed rules apply to agents as well as lenders) and could very well lead to licensing revocation.
- Non QM "specialty" loans like DSCR, bank statement loans, 1099 loans, and others do not like acreage homes or rural property locations! Some will not accept rural property at all, and other Non QM lenders increase the required down payment by reducing max LTV and/or increase the interest rate. And since these are not traditional loans, the rate is substantially higher with 5/1, 7/1, and 10/1 Hybrid ARMS common.
- Condo project approval or approvability needs to be identified early. Understanding the difference between a warrantable and a non-warrantable condo project will keep you sane. And realize most loan officers are clueless on condos.
- Non-occupant co-buyers help DTI, not credit. If you have a buyer with unacceptable credit history, adding a co-buyer will not help. Co-buyers only assist when more income is needed to bring the DTI down to acceptable levels. USDA and VA do not allow non-occupant co-buyers
- #agent loan tips
More Agent Loan Tips guides
Disclaimer: Informative opinion based on decades of experience, not legal advice. Guidelines change and lenders differ in their interpretation and overlays — verify details with the lender handling your loan.