LOAN BASICS
What is the minimum credit score typically required for a conventional loan?
620
What’s the key difference between a HELOC and a Home Equity Loan?
A HELOC is a revolving line of credit; a Home Equity Loan is a one-time lump sum.
What is the length of a typical fixed-rate mortgage?
30 years
What federal law requires lenders to disclose loan terms and costs?
Truth in Lending Act (TILA)
What’s the best first question to ask a lead?
What’s your goal with this refinance/purchase?”
What does LTV stand for?
Loan-to-Value
What’s one major advantage of doing a cash-out refinance instead of a HELOC?
You can often get a lower fixed rate and consolidate all debt into one payment.
What is the term for the interest rate changing over time?
Adjustable-rate
What is the form used to verify a borrower’s income from an employer?
VOE (Verification of Employment
How should you handle a rate shopper?
Focus on value and total savings, not just rate
What is the upfront fee charged by lenders to process a loan?
Origination Fee
When might a HELOC be a better option than a refinance?
When you already have a low first mortgage rate but need access to cash.
What market indicator influences mortgage rates most?
10-year Treasury Yield
What document proves ownership of a property?
Title or Deed
A borrower says they want to “think about it.” What do you do?
Ask discovery questions and uncover hesitation
What is the term used when a borrower replaces their existing loan with a new one?
Refinance
What is the typical draw period length on a HELOC before repayment begins?
Usually 10 years.
What is the fee a borrower can pay upfront to reduce their rate?
Discount Points
What act prevents discrimination in lending?
Equal Credit Opportunity Act (ECOA)
What’s the most important factor to build trust quickly?
Listening and clear communication
What is the document that summarizes loan terms and closing costs before signing?
Closing Disclosure
What’s one smart reason to take advantage of a rate-and-term refinance?
To lower your rate, reduce your term, or remove mortgage insurance (PMI).
What’s the term for repaying the loan balance faster through extra payments?
Loan Amortization Acceleration
What document outlines how much money is held in escrow for taxes and insurance?
Escrow Disclosure
What’s the key to increasing locks at month-end?
Daily follow-up, urgency framing, and clear next steps