For someone who’s either in the mortgage lending business or real estate, mortgage loans are simply a part of their day-to-day, but for a first time homebuyer or even someone who’s purchased or sold a house once or twice, mortgage loans can be complicated. It’s hard to determine if you’re getting the best deal or making the right decision for you and your family, but that’s when a good loan officer can come in extremely handy.
Zach and I were able to sit down with Matt Maltese, Producing Branch Manager at Supreme Lending, and he gave us the 411 on mortgage loans. Now Matt’s 19 years of lending experience and his ties to Las Vegas make him very knowledgable when it comes to securing a loan here. He follows the housing market closely and works to make sure that he is helping his clients make the best decision possible when it comes to choosing their loan. He was able to tell us a lot about what he did and what’s important to keep in mind when shopping for a mortgage loan.
You can view our interview with Matt here!
I’ve also provided a breakdown of most of the information we covered during the interview.
What does the mortgage loan process look like for a buyer?
While securing a mortgage loan, buyers will work with a loan officer to complete a basic loan application. After this application has been completed, their loan officer will pull their credit score and run their application through an automated underwriting program. This program will provide feedback on their application and will ultimately determine if a buyer will or will not qualify for a particular type of loan. During this time, the loan officer will need copies of the buyer’s most recent pay stub(s) and their tax returns and W-2s from the past 2 years. Please note, this information is needed from whoever will be listed on the loan. Going through this process before choosing a home will allow you to provide a pre-approval letter along with your offer to the sellers. These pre-approval letters are becoming more and more necessary in today’s competitive market. Buyers will not apply for their loan until they have selected a home and enter a contract with the seller.
What is the most important thing to focus on when getting pre-approved?
When Matt works with buyers to get them pre-approved, he focuses on establishing a clear understanding of their financial standing and what they want to accomplish with their loan. For example, does the buyer have an idea of how much they would like to borrow, how much they would like to put toward a down payment, or how much they would like their monthly mortgage payments to be? These are all questions that Matt asks in order to gain a better understanding of his clients and make sure he can provide them the best direction possible and any other recommendations necessary when it comes to choosing a loan that’s best for them.
What separates one loan officer from another?
An understanding of the Fannie Mae, Freddie Mac, FHA and VA loan guidelines is extremely important. Having a loan officer that is familiar and comfortable with all of their intricacies and details can be a huge advantage when it comes to how smoothly a buyer’s loan process will go. Similarly, it’s great to have a loan officer that has a good working relationship with their loan underwriter and understands how they typically analyze a loan application and the buyer’s income. The reality is, almost all loans are sold on the secondary market, and if your loan is not done correctly, it can end up costing the lender a large amount of money. In order to avoid having your loan fall through, it’s important to have a loan officer who knows all of the guidelines and can foresee how a buyer’s application will look to their underwriter.
What types of loans does Matt work on?
Matt is able to process all types of traditional loans including, conventional, FHA, VA and jumbo loans. Depending on the type of loan you’re looking to secure, different factors will play a role. These factors include the buyer’s credit score, whether they have purchased a home in the past, how much money they are willing to put as a down payment, whether they are a veteran or not, and if they would not like to pay mortgage insurance to name a few. I’ve quickly outlined some of the qualifications and details of each type of loan below.
What type of client does Matt typically work with?
Matt works with all types of clients including first-time home buyers, veterans and investors. One of his favorite types of clients are first-time home buyers. With these clients he’s able to provide a lot of information and help them walk through the various types of loans and choose the one that is best for them. Sometimes what might be the obvious choice for someone, may in fact not be their best option depending on other factors, such as how long they plan on living in their new home.
Can you explain what down payment assistance programs are and the options that they’re currently offering home buyers?
In Nevada, there is a down payment assistance program called “Home is Possible”. This program offers buyers between 3% and 5% to be used towards their down payment or closing costs. However, interest rates and other fees can be higher when using this program, so it is not necessarily the best option for everyone.
What is the difference between Supreme Lending and one of the other major banks when it comes to mortgage lending?
The biggest difference is that Supreme Lending is a mortgage lending company only. Unlike some of the other major banks like Bank of America or Wells Fargo that offers mortgage loans, Supreme Lending does not offer checking or saving’s accounts or other types of loans. This allows them to focus solely on knowing everything there is to know about mortgage loans and providing their clients with the best and most information possible.
What is something buyers wouldn’t expect during the mortgage loan process?
One of the things Matt sees most frequently that is unexpected by buyers is the miss-calculation of their income. Potential buyers do not always realize all of the information that goes into calculating their income, especially when it comes to calculating it the same way the underwriter will, allowing their loan application to get approved without any hiccups. At times it can feel that the underwriter is being too picky when it comes to requested documents, but this is all necessary for the loan to be approved as quickly and efficiently as possible. This is part of what allows it to be sold smoothly on the secondary market, something all lenders want.
What advice would Matt give a potential buyer?
Matt recommends working with a loan officer who will understand the intricacies of the income calculation and how their underwriter will go about doing it. He says that it’s important to ask your potential loan officer the hard questions. For example, how long they’ve been in mortgage lending and if they work with their underwriter frequently. Being aware of these things will help ensure a smooth loan process.
Keep in mind this is just a summary of what was covered and everyone’s situation is unique, so it’s always best to get advice from a professional loan officer.
Matt can be reached at 702-372-2427 or you can check out his website at www.maltesemg.com.