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.

Mortgage points come in two varieties: origination points and discount points.

1. Origination points compensate loan officers and are BAD. ClearPath does not charge any Origination Points.
2. Discount points are paid to get a lower interest rate; we like to call this Prepaid Interest. Note: 1 point = 1% of your loan amount.

When you apply for your mortgage, we will provide multiple interest rate options (including options with discount points) so that you can choose the interest rate that is the best decision 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.