and Freddie Mac conforming limits are both the same at $500,000. A conforming loan will be anything below $500,000 and a jumbo loan will be anything above $500,000. However, due to the cost-of-living being different across the country, certain areas have higher conforming loan limits than others. Therefore conforming and jumbo loans will be different depending on your area. Most real estate agents will only deal with home prices that fall below the conforming price, so this will rarely come up with your clients. However, the difference between obtaining a conforming loan and obtaining a jumbo loan is significant, so it’s important to understand the terms when dealing with lenders. Now you know about the mortgage options on the table. Let’s talk a bit about the people involved in making the mortgage a reality.
THE PLAYERS INVOLVED IN THE LENDING PROCESS
After the prospective buyer decides they want to buy, they will need to select a lender. As a real estate agent, you will likely be asked for advice on the topic. At the end of this chapter, we’ll give you some tips on that. But for now, let’s assume that the borrower has already determined the lender they would like to use. The first person engaged in t d in the lending process is referred to as the loan officer. The loan officer is the project coordinator, overseeing the transfer of information between your client (the prospective buyer) and their organization’s processing and underwriting departments. It is likely that the loan officer will be in direct contact with the borrower from the beginning of the mortgage process all the way through until closing.
The loan officer should be licensed with the National Mortgage
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