Orion discusses some fairly advanced topics on this site for our brokers, but our primary focus is keeping you satisfied. Orion’s AEs are very good at evaluating the depth of knowledge our brokers, experienced or novice, possess, and adaptour communication to ideally suit you. But we believe it is important to start all clients off with a reminder of how best to accomplish your, and therefore your client’s, goals and objectives.
First, figure out the type of loan your client needs. Brokers know that the most popular loan is a 30-year amortizing, fixed-rate loan. But Orion offers many other types, including 15-year loans, adjustable-rate loans, along with various programs within each one. First-time homebuyers often opt for an FHA loan, since they have low rates and a down payment as low as 3.5% of the purchase price. Veterans may want to consider VA loans, which sometimes require no down payment. Buyers of a primary residence or vacation home may finance it using a conventional, fixed-rate mortgage. And adjustable-rate mortgages (ARMs) may make sense for someone who is planning to move relatively soon after buying.
Experienced brokers will discuss a client’s life situation. This includes career trajectory, income expectations, possible inheritance, short-term versus long-term cash flow, expected family size, likelihood of moving, and other variables.
Orion’s AE are there to help you in working with clients in addressing income complexities.More and more people are self-employed or working in the “gig economy.” Orion’s underwriters, analyzing income from non-traditional sources, may require additional documentation. The seller and listing agent often insist on quick closings. That’s not a problem if your client’s income comes from a simple pay stub, but if there is any income complexity, Orion’s AEs will work with you to assemble a complete file for your client before writing offers.
Orion will look beyond just income at your client’s debt-to-income ratio, which is all of the monthly debt payments divided by their gross monthly income. The lower the better, and if your client’s total monthly debt payments are 35% or less of their income, it’s very good. Orion’s underwriters are well-versed at looking at credit history and credit score.
Lastly, before the loan process even begins, brokers will advise clients to talk to their financial or tax adviser, if your client has them, before buying a home. Asking whether they can afford to buy a home, if they have enough saved, whether the home fits into their future financial plan, what the tax implications might be, and more are all imperative questions you should have answered by your clients. And Orion is here to help.