A mortgage broker serves as an intermediary who brings mortgage borrowers and mortgage lenders together. We love being a mortgage broker because we get to shop around multiple different lenders to find the best overall mortgage product (best interest rate, lowest closing costs, amazing client experience, etc.) to fit our client’s mortgage needs.

Our clients do not pay ClearPath Mortgage Solutions anything to use our services. The wholesale lenders that we work with pay us directly, at closing, to oversee your mortgage experience beginning to the end. In a way, we function as the retail locations of some of the largest and best lenders in the country.

As a mortgage broker, we have access to over 70 different wholesale lenders, each that have their own suite of product offerings and interest rate options. After we know the specifics of your unique home-buying (or refinancing) situation, including your credit score, we will provide you multiple different interest rate options. We’ll then guide you through choosing the best option for your family.

For Conventional loans, our interest rates are right in line with industry averages and local banks/credit unions. Our VA and FHA loan rates are typically well below industry averages and local banks/credit unions. Below is a table showing some national averages which may give you an idea of what your interest rate couple be, if you locked in today.

A Pre-Qualification is based on the “stated” credit, income, asset, and property information the borrower provides to a lender, which will provide a ballpark estimate of how much they could borrow to purchase a home. The pre-qualified amount is not a sure thing, because none of the information provided has been verified.

A Pre-Approval is when a Licensed Mortgage Loan Originator has verified and reviewed the information provided by the borrower to ensure their credit worthiness and loan qualification.

At ClearPath, we rarely do Pre-Qualifications because we believe you deserve more than a “maybe”. You deserve guidance, strategy, and expertise to get a perfect mortgage for the home you love. And that begins with a ClearPath Pre-Approval you can trust.

The ClearPath Verified Pre-Approval will give the guidance to know exactly what price range you should be looking in, what options you have, and and the assurance that there will be no unpleasant surprises before closing.

Each Pre-Approval is run through an Automated Underwriting System (AUS) to verify that your income, asset, credit, and prospective property information meets Fannie Mae or Freddie Mac’s eligibility requirements.

The debt-to-income (DTI) ratio is the percentage of your gross monthly income that goes to paying your monthly debt payments and is used by lenders to determine your borrowing risk.

A low DTI ratio indicates sufficient income relative to debt servicing, and can have a positive impact on home affordability and loan options available. Different loan programs have different DTI requirements. Your ClearPath Licensed Loan Officer will guide you through the options you have.

The ClearPath Verified Pre-Approval process will help you know exactly how much home you can afford. We’ll evaluate your current financial situation (credit, income, assets) in light of your homebuying (or refinancing) goals and give you the guidance you need to know exactly what price range (and tax range) you should be looking in.

In simple terms, discount points are a one-time closing cost paid by the borrower to the bank in exchange for a lower interest rate. When you apply for your mortgage, we’ll review multiple rate options, including options with discount points, so you can choose what makes the most sense for your family.

An annual percentage rate (APR) is the yearly rate charged for a loan or earned by an investment.

In theory, The APR provides consumers with a bottom-line number they can compare among lenders, credit cards, or investment products. However, the APR may not reflect the actual cost of borrowing because lenders have a fair amount of leeway in calculating it, excluding certain fees.

CAUTION: Be aware of teaser rates that do not reflect the actual cost of a loan product.

There is no credit score threshold that will definitely disqualify you from getting a mortgage, but the lower your score, the harder it will be to find a lender to approve you for a loan. The minimum credit score to buy a house with a conventional mortgage is typically 620, whereas the FHA loan and VA loan products have lower credit score requirements.

You cannot get a mortgage while in a bankruptcy. All major lenders and mortgage investors require that the bankruptcy be either discharged or dismissed before application. In addition to this, many loan types require a waiting period before you can even apply for a new mortgage.

Most mortgage lenders prefer that you have worked consistently in the same field for at least two (2) years before you qualify for a mortgage. In the simplest terms, underwriters look at your employment and income to determine your ability to repay the loan.

However, depending on the type of income (salary, hourly, bonus, commission) and the amount of time you’ve spent in your industry, it is still possible to get a mortgage with a shorter work history. We will guide you through this.

Getting a mortgage isn’t free. Closing costs are the fees and charges in excess of the purchase price of the property due at the closing of a real estate transaction.

• Both buyers and sellers may be subject to various closing costs.
• Closing costs may include your downpayment and fees related to the origination and underwriting of a mortgage loan, real estate commissions, taxes, and insurance premiums, as well as title and recording filings.
• Closing costs must be disclosed in advance by law to buyers and sellers and agreed upon before a real estate deal can be completed.

Note: Most closing costs are consistent among lenders (e.g. transfer taxes and recording fees), however there are some closing costs that are specific to certain lenders.

As part of the ClearPath Verified Pre-Approval process, it is necessary to retrieve your credit score and history from Equifax, Experian, and TransUnion (otherwise known as your Tri-Merge Credit Report). Here is some more information on this credit check:

• This credit check will have a very small (1-3 point) impact on your credit score.
• Within a 45-day window, multiple credit checks from mortgage lenders are recorded on your credit report as a single inquiry. This is because credit agencies realize that you are only going to buy one home, and that most homebuyers will be shopping around for the best mortgage.

If you are looking to refinance, we will not need to pull your credit until you decide to move forward with one of the refinance options we have presented to you. Your actual credit score will confirm the interest rate and terms you qualify for.

Once your offer is accepted, we move fast. We will coordinate a time to review your mortgage options, ensuring they align with your goals. Then we will officially apply for your mortgage and introduce you to your ClearPath Processing Team. At the same time, we will submit your official mortgage application. From here on out, our job is to guide you step by step so there are no surprises.

Click here to view “The Mortgage Process Simplified Page” to understand each step from Application to Clear to Close, including what’s happening, what’s needed from you, and what comes next.

Shortly after your review and acknowledge your mortgage disclosures, your dedicated loan processor will introduce themselves. They will review your file, request any remaining items, and be your point of contact for documentation. If something is needed, we tell you clearly and as early as possible, so nothing slows the process down.

Mortgage commitment means the bank has reviewed your loan and agrees to lend to you, subject to specific conditions. These conditions are normal and usually involve updated documents, final verifications, or appraisal review. Commitment is a major milestone and confirms you are on track to close.

After commitment, the remaining conditions are cleared and the file moves toward final approval or clear to close review. In most cases, closing happens shortly after all conditions are satisfied and the title work is complete. We work closely with all parties to help facilitate a closing as soon as the loan is ready.

Mortgage commitment means the bank has reviewed your loan and agreed to lend to you, subject to specific conditions. These conditions are normal and usually involve updated documents, final verifications, or appraisal and title review.

Clear to Close means all conditions have been satisfied, and the loan is fully approved. At that point, the bank is ready to fund the loan, and you can move forward with scheduling closing.

Clear to Close is issued once the bank has:

• Reviewed and approved all conditions
• Completed final income, asset, and employment checks
• Approved the appraisal and title work
• Received all required disclosures

This means the loan is fully approved and ready to fund.

Once the loan is Clear to Close, all parties will be notified, and you can begin discussing the closing date and time with your attorney or title company. You’ll receive your final closing disclosure to review before closing day. At the closing, you’ll sign your documents, the loan funds, and ownership of the home is transferred.

The Loan Estimate is a document provided at the start of the mortgage process that outlines the estimated loan terms, interest rate, monthly payment, and closing costs. Your Loan Officer will review this with you and answer any questions so you fully understand how your loan is structured. Think of this as your loan outline before the final copy, or closing disclosure is issued.

Because some costs depend on third parties or timing, the numbers on the Loan Estimate may change as your loan moves forward. Final figures are confirmed on the Closing Disclosure.

The Closing Disclosure is a document that shows the final terms, loan details, and closing costs for your mortgage.

There are two versions you’ll see:

• Initial Closing Disclosure:
  This is issued once your loan is close to final approval. It reflects the best available numbers at that time and is used to start the mandatory review period before closing.
• Final Closing Disclosure:
  This is issued once all figures are finalized. Small changes between the initial and final versions are normal and often related to prepaid items, prorations, or final title charges.

Yes. Signing the initial Closing Disclosure confirms that you received and reviewed it. It does not mean you are agreeing to final numbers or obligating yourself to close.

The initial Closing Disclosure starts the required review period before closing so that your attorney and the bank can accurately balance the numbers. Final numbers are confirmed on the final Closing Disclosure, which you will receive prior to your scheduled closing.