CREDIT
What factor makes up the largest portion of a FICO score?
Payment History
Which program allows as little as 3.5% down?
FHA
What is the maximum Housing Expense Ratio allowed on Conventional Cashout Loan?
45%
How early in the call should you state "All of our calls are recorded." ?
Within 90 seconds of the call
If your home is worth $400,000 and you owe $250,000, assuming no closing costs, how much equity is available via a Conventional Cashout Refinance?
$70,000
Installment loans include...
Auto loans, mortgages, student loans, personal loans, 401K Loans
If someone has a FHA loan, what is the soonest they can refinance and take out cash?
210 days after origination date, 6 on time payments made.
What is the minimum credit score required to qualify for a cashout loan in TX?
620
What does enRICHM stand for?
Retirement, Investments, College, Home Improvements, Major Purchases
How much is the VA Funding Fee for a VA loan of $100,000 in which the borrower doesn't receive disability income?
$3,300 = 3.3% of loan amount.
True or False
Closing your oldest credit card always helps your score.
False.
What Loan Product voids the County Loan Limit restrictions?
VA Loan
If a borrower receives a 401k payment monthly as income, what documents are required to prove this as income?
Most recent 1099, Full Asset Statement, Most recent Bank Statement
Why do we always show multiple options?
So the choice is between 1, 2, or 3. Not "yes" or "no"
A borrower with no debt has an income of $5,000, what is the largest their mortgage payment could be?
$2,250
What is the 30/50 rule on Credit Card utilization?
30% or less utilization improves your score, 50% or higher utilization is hurting your score.
$2,000
Your file has 4 risk factors - what is an example of a compensating factor to get approval on the file?
6 months PITI assets, 12+ on time payments with non-credit liabilities.
If asked "can I think about it?" on the Proposal, what should always be your first response?
"Are you thinking about which option to move forward with, or whether or not to get a loan altogether?"
If your PITI payment on an investment property is $1,350, how much in liquid reserves does the borrower need?
$8,100
Borrower has:
Card A
$10,000 limit
$9,000 balance
Card B
$2,000 limit
$0 balance
What utilization are they carrying?
75%
If an appraisal has been completed within past 2 months, what is the likelihood of getting a PIW on findings?
0% - a recorded appraisal in past 180 days makes it impossible to get a PIW.
In TX, if a Mother and Son live together but only Mother is on title, how is required to add son to loan to qualify?
A stated and signed copy that explains that there is a financial co-dependence between mother and son - meaning they cannot afford living without one another.
After you get a positive response on your trial close, what is your immediate next step?
Doc Order - think through where they are and how they will be sent.
If a borrower wants to avoid MI on a purchase of a property valued at $420,000, how much would the down payment need to be?
$84,000