Understanding The Mortgage Process – FHA, VA, and Conventional Loans


There’s a reason for each and every one and it’s my job to help people figure out what works best for them and to try and help on a seller’s perspective that, that is good for them as well. So not to be afraid of all the different things they see. Deb, let’s just go over some basic lender terms such as Conventional FHA, VA. Can you describe the differences with those? Yes. So there are different areas that, that buy the loans and so conventional loans or Fannie Mae or Freddie Mac and they have certain guidelines that fit into those pools of loans. FHA is for people with a lower down payment and a lot of people assume FHA is just for first time home buyers and it’s not. It is for owner-occupied homes, VA is for the veterans, which is great and they have their own special zero percent down, but the Conventional loan is what most people aim for and go for it.

So Deb, during the process you refer to, can you explain to the buyers and sellers out there what an underwriter is and what they do? The underwriter goes through all the, the details in the file from income and assets to appraisals and title, and they, they make sure all of those details fit within the guidelines. They do calculate income, they do calculate assets, which seems to be, you know, when we go to underwriting, that’s where we take all of the conditions, all of the things we think you need to get your loan. , and they clear all of those conditions. So they say, yes, we have the right income. Yes, we have clear title. I have buyers that could go to multiple different places to find a mortgage broker and I ultimately would like them to end up with you because I know what you can do for them.

Can you explain what you do for your customers versus the other brokers out there? As a mortgage broker, I can shop. I have lots of loans available. I work for the borrowers so I don’t work for the bank or for anyone else. I’m a fiduciary, which is completely different than anyone else doing loans out there. As a broker. I’m not an extra step in the process and some people think, well, how do you get paid or how does this work? I’m like the loan officer at the bank, except I have multiple banks that I can work with so we work on the wholesale channel. , and I, I have all the different products that all the different lenders and I know which lenders are better for self-employed and have the better interest rate or for whatever reason, and I get to work directly with the buyers on what works best for them and in my experience in working with you, , another advantage that my buyer clients have is that you are there for them, the whole step of the way. They’re not calling into a call center.


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