what are some of the things i should know if i am going to be a mortgage consulant?

Question

I have an interview with a mortgage company and would like to know what some of the terminology will be and what kind of the questions I will be asked. Mortgage is all new to me, however I have only done route sales before where I earned a base salary plus commission. With this company I will make a base salary plus commission. How will that work? If sombody could please shed some light on my line of work.

Answer 1

When you say consultant, does that mean you will be originating loans? If so, you will have a lot to learn....learning terminology is not enough.

However, go this website for an excellent glossary of mortgage terms. Click on the "Mortgage Glossary" link to get the terminology you are looking for. There are other links on this page that may also interest you too.

https://secure.firsthorizonwholesale.com/Tools/default.asp

Here are some abbreviations and what they stand for:

ARM - Adjustable Rate Mortgage
APR - Annual Percentage Rate
DOT - Deed of Trust
POA - Power of Attorney
FNMA - Fannie Mae
HELOC - Home Equity Line of Credit
HOA - Home Owners Association (important, because they often charge dues, which need to be factored in as a reoccuring monthly expense when determing debt-to-income ratios)
DTI - Debt-to-Income Ratio
LTV - Loan to Value Ratio
CLTV - Combined Loan to Value Ratio (Used when working with a HELOC)
PITI - Principle, Interest, Taxes and Insurance
TIL - Truth in Lending Document
VA - Veteran Affairs (type of loan extened to military veterans)
GFE - Good Faith Estimate
1003 - The standard loan application used by all mortgage companies
VOD - Verification of deposits
VOE - Verification of Employment
ECOA - Equal Credit Opportunity Act Notice


Some other terms:
*Stated Income Loan- This is usually used with people who are self-employed and the amount of their income is "stated" and the supporting documentation is usually 2 years of tax returns.
*Full-doc - This is a loan with full documented support of the numbers provide...the Borrower must submit paycheck stubs, bank statements, etc..
*FICO - A credit score that is generated based upon a clients outstanding debts, current open accounts, closed accounts, inquiries into their credit, judgments, delinquincies, etc...A higher FICO score gives a Borrower a better chance of getting a loan and getting it at a better rate.


Putting this all into practice is going to take some training and I hope you are good with math and like crunching numbers. Good luck on your interview...and can I add, don't work for a mortgage company that you feel may not be aboveboard in securing loans....any kind of number twisting to get people into loans they don't qualify for, promises made regarding borrowers costs, using inaccurate information, etc...that don't seem right means you are working with a predatory lender and this could get them (and you) in trouble if caught....this is loan fraud and unfortunately there are a slew of mortgage companies out there that commit it on a daily basis.

Answer 2

What makes the program difficult for me is that I was responsible and purchased a Fixed mortgage that cost me more up front and more over the past 2 years. I am not aware of your situation, but others paid less up front, bought an ARM that cost less over the past 2 years, and now they get the deal. I do not. I get the tax increase to pay for it. Typical Democratic politics. I live in Upstate NY where the Democrats have been rewarding bad behavior for decades and now we have the 2nd highest poverty rate. Great for those who choose not to work. Bad for those who have to pay the highest taxes in the country. Then the Democrats portray all Republicans based on Rush Limbaugh. If We were to do that with Al Sharpton, the media and the Liberals would be screaming Bloody murder. Liberal Fascism is here and the Left does not see it because it benefits them and costs the rest of us our hard earned cash. 50% of the country does NOT pay taxes and they are the ones who collect most of the benefits. These are the people who have voted themselves the treasury. Always a good thing when it benefits you and costs someone else. Typical Liberal.

Answer 3

Check out the site I created in the last few months. You'll learn enough to feel like an expert in the interview. Most loan officers know very little, so you'll be fine.

http://www.thetruthaboutmortgage.com