What to look for in a Mortgage

Mortgage Agent #M10001503Brokerage #12358

Warwick Johnston

What are they looking for?

What do Mortgage Lenders look for?

What should Mortgage Brokers look for?

What should Clients look for?

3 Perspectives

Call Direct: 647-274-6029www.MortgageSource.biz

Mortgages Originated as an Agent of Mortgage Allies #12358. License #10001503

http://www.MortgageSource.biz/

The 5 C’s of Credit:• Capacity• Credit• Capital• Collateral• Character

What Do Lenders Look For?




Capacity

Can you afford your mortgage:• Income Type• Employment Status• Covenants• GDS / TDS

>680 – 39% / 44%<680 – 35% / 42%




CreditBeacon Score

B LendersExpensive Money

A LendersCheaper Money




Capital

Mortgage Down Payment:• Source

- Equity- Cash- Gifts




Collateral

Bank Mortgage Security:• Property Type• Location• Age• Purpose• Owner Occupied / Rental




Character

What makes you a goodMortgage Risk for the bank:• The Story• More than numbers• Who are you




The Process:• The Story• The Product• The Bank• The Rate

What Should Mortgage Brokers Look For?




Client Situation



• Family of 5• Live in parents basement• Want to buy a home

• $500k in the bank, Income of $250k• Offer on previous home very good• Buying 4th home• HELOC product for future investment


Beware the following:• The Great Rate• The Penalty Calculation

IRD – Posted vs Actual

• The Compounding Interest• The Cash Back Mortgage• The Closed Mortgage

What should Clients Look For?




Mortgages Originated as a Licensed Agent of Mortgage Edge #10680. License #10001503

Multiple Banks,Multiple Products


Remember, we get paid by the banks. Our service is free.

Warwick JohnstonMortgage Broker

What to look for in a Mortgage

Real Estate

Transcript of What to look for in a Mortgage