Things You'll Need:
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Step 1
Learn Mortgage Terms:
1)Mortgage Banker-One whose company actually makes the loan using their own funds.
2)Mortgage Broker-One who serves like a Stock Broker in many ways in that they look for the best deal for their client. After analyzing the client's situation .... they then "shop" the wholesale lenders they are connected with .... make the deal,(rate, term) and forward the necessary documents to the specific lender.
3)Rate and term-Rate refers to the interest rate, Term refers to the length of the loan. and in the mortgage business you use months instead years to describe the term.30 years=360 months,15 years=180 months and so on.
4)Wholesale Lender-This is a lender who can only make loans thru a Broker or Banker provided the broker/banker is signed up with them.Some Wholesale Lenders also have Retail offices where customers can just walk in and get their own loan.The widely known "Countrywide Home Loans" is a good example of a company that has both a wholesale and a retail side.
5)Arm-yes that is pronounced arm...just like the two you have.Arm means,
Adjustable Rate Mortgage
6)Point-A point is 1% of what ever # you are talking about at the time. OK points up front means money that you get out of the proceeds of the closing.....points on the back is a special premium that the wholesale lender pays you(or the Loan Officer) in private or(POC),simply for bringing the loan to them.
7)POC - Means Paid Outside of Closing and that covers anything that is paid either before or after the closing.
8) Apr - Annual Percent Rate..........DO NOT confuse that with the interest rate !!The annual Percentage Rate is different and
must be reported by lenders under Truth in Lending regulations. It is a comprehensive measure of credit cost to the borrower that takes account of the interest rate, points, and flat dollar charges. It is also adjusted for the time value of money, so that dollars paid by the borrower up-front carry a heavier weight than dollars paid ten years down the road.
9)TIL Pronounced til is the Truth in lending document
10)GFE Simply called the by the initials G F E .It is The Good Faith Estimate.
11)Point- Another term using the word Point relates to the Loan Origination software. The one called Point is made by Calyx and is sometimes referred to as Calyx Point.Get a copy of that from the company you work for.It is by far the most used in the industry, followed by Ellie and Mortgage Dashboard which are both internet based. -
Step 2
I will now list some sites where you can go and learn a lot about the Mortgage Business:
http://www.mortgagemag.com
http://www.fanniemae.gov
http://www.mtgprofessor.com/glossary
Also here are some additional Mortgage terms, I ran out of space in step1.
12)1003 pronounced ten oh three is the universal Loan Application used by every Bank,Finance,or Mortgage Company.
13)1008 pronounced ten oh eight and is also sometimes referred to as a Transmittal is simply a summary of the important aspects of the loan.
14) Docs....is basically any kind of document connected to the file.
15)Title-makes sure the property doesn't have judgements against it. The title company also closes the loan for you.
16)Loss payee clause sometimes called the mortgage clause...goes on the updated home owners insurance policy so they know who to pay in case of a claim. -
Step 3
Step by Step Loan Processing Guide:
First of all when the file is given to you the Loan Officer/Broker/ or whomever gives it to you should already know where the loan is going,(which wholesale lender),and they will supply you with the contact information for that specific lender,(phone and fax #'s, e-mail address etc.)
1) you talk to the lender and see how they prefer to receive the loan docs....wheather it is via scan and e-mail,fax,Blitz Docs,or if you just go to their site and up-load the file.....no matter how they require it to be delivered to them...you must do the following things first:
1)order appraisal
2)order title
3)if this is a re-finance, order pay-off from their present Lender.
4)order verification of employment
when all that comes back to you then transfer it along with the other part of the file that the loan officer gave you and submit it to the lender....then in a few days the lender will send you a stip sheet and tell you what if anything they still need....get all that together submit it to the lender and you should get conditions to close.
Comments
NAMP said
on 3/12/2008 I would also recommend visiting the National Association of Mortgage Processors at http://www.MortgageProcessor.org for helpful work at home loan processing opportunities, loan processor jobs, networking, and certification programs.