Episode 13: Eric Smart
Episode Summary
The mortgage process begins with the application, where the borrower provides information about their income, assets, and debts. This information is crucial in determining the type of loan and the amount that the borrower qualifies for. It’s important to be transparent and provid
1. Could you explain the basic mortgage process and some things that people might not realize about it?
The mortgage process begins with the application, where the borrower provides information about their income, assets, and debts. This information is crucial in determining the type of loan and the amount that the borrower qualifies for. It’s important to be transparent and provide all necessary information upfront to avoid any issues later on. Skipping steps or withholding information can lead to problems down the line.
2. What are some common mistakes people make during the mortgage process?
One common mistake is not being completely transparent with your loan officer. This includes not disclosing things like a past bankruptcy or a forthcoming divorce. Another mistake is making major changes like quitting your job or starting a new company just before closing on a house. Lenders will do an employment check right before closing to ensure you still have the same employment.
3. What role does the underwriter play in the mortgage process?
The underwriter’s job is to be meticulous in reviewing the borrower’s financial situation and ensuring that they meet the lender’s requirements. They’re not the decision-maker, but they help put together the package that will be presented to the decision-maker. It’s important to work positively with the underwriter and provide them with all the necessary information.
4. What changes do you anticipate in the mortgage industry for the coming year?
There are always changes in the mortgage industry, especially with a new presidential administration. While it’s difficult to predict exactly what will happen, it’s important to stay informed and be prepared for potential changes. For instance, we might see changes in interest rates, lending requirements, and other factors that could affect the mortgage process.
5. What impact did the fluctuating rates have on the mortgage market last year?
Last year, we saw a lot of fluctuation in rates, which I refer to as the ‘year of whiplash’. When rates dipped, there was a slowdown in production as people paused. However, when rates shot up, it created an opportunity for people to get a good deal on their purchase price. It’s important to understand that changes in rates can create opportunities, not just challenges.
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