Mortgage Loan Processor Interview Questions
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Name for me four different types of mortgages and why a client would select each one.
User Submitted Interview Answers
Conventional - standard mortgage that would fit most borrowers FHA - for borrowers that may be somewhat credit challenged but can afford a mortgage VA - veterans would select this type of mortgage Reverse mortgage - for the elderly looking to pull some equity from their home.
FHA- For first time home buyers, VA- For registered veterans who get a discounted interest rate, Jumbo- for very high value properties, HARP- For upside down mortgages refinances.
Fix loan (wants to keep the house for a long time wants to have a monthly fix amount for payment), Adj loan (is not planning to keep the house for long term), balloon loan (want to pay lower monthly payments and pay a larder payoff, heloc (wants to draw funds as needed)
Jumpo loan and consumer loan.
Purchase - To own your own property, Refinance to take out some of the equity to refurbish the home or for college tuition., FHA - If you don't have much money for down payment, HARP - Modify your current payment.
FHA: for people with debt, credit issues, new to housing market VA: Loans for Veterans with no strict limits on eligibility Conventional: Most typical loan for people with outstanding credit or low debt-income ratios. Bought directly through Freddie Mac or Fannie Mae Jumbo: Same more or less as conventional just a bigger loan and you need better credit, high income, down payment of 20-30% (also USDA: rural area homes, sometimes better but often out of the way with crumbling infrastructure)
Fixed= client pays off a fixed rate over a fixed time period regardless of changes in trends that may cause the loan payment to increase or decrease. FHA= 1st time buyers with low or no downpayment and lower credit scores. It is secured by Mortgage insurance that is included in the payment of the loan. VA= former military and is usually no money down. Interest Only=borrow has option to pay only the interest on this loan for a specified period of time. Adjustable (ARM)= a client who wants a lower rate up front and is willing to have the payments balloon at a later date. Someone who.
VA Loans, FHA Loans, Conventional Home Loan, Fixed vs. Adjustable Rate.
Fixed rate mortgage, FHA mortgage, VA mortgage, Interest Only Mortgages.
Fixed rate - no change in interest. Adjustable rate - lower interest rate for set period. Balloon - all funds due at a certain date. Interest only - lower payment for set period of time.