Prequalification
Point contains tools and forms so loan officers can quickly show prospects how much they might qualify for, then follow up with side-by-side loan comparisons that make it easy to compare loan products.
Prequalification Tool
The Prequalification tool gives prospective borrowers an idea of how much they might qualify to borrow. This tool helps you answer two basic questions for the borrower: “What can I afford?” and “Can I afford this property?” The Prequalification tool also provides information about minimum income required and maximum debt allowable.
Prequalification vs. Preapproval
With the advent of automated underwriting, the loan approval process has changed significantly. Automated underwriting engines, such as Fannie Mae Desktop Originator and Freddie Mac Loan Prospector, make it possible to get actual underwriting decisions—not just prequalifications—in minutes. With lenders in Point and built-in interfaces to Fannie Mae and Freddie Mac, Point makes it easy to take advantage of all the benefits of automated underwriting.
Amortization Schedule
The Amortization Schedule in Point displays the individual principal and interest values for each mortgage payment, or it can show the values accumulating over the life of the loan. The schedule shows borrowers the advantages of making extra payments to the principal with each monthly payment or of making one additional lump-sum payment per year.
Rent vs. Own
Point makes it easy to show borrowers the financial advantage of home ownership over renting. The Rent vs. Own tool bases its calculations on months of home ownership, current rent, assumption of rental increase per year, assumption of home appreciation (compounded yearly), investment interest (interest earned on the down payment if not used for purchase), and income tax bracket. Results show the monthly financial benefit of purchase plus the benefit of home ownership for the total number of months selected.
Cash-to-Close Summary
Point creates a Cash-to-Close summary based on information from the Loan Application (Details of Transaction, page 4), the summary includes estimated prepaid items, estimated closing costs, and cash to or from the borrower. The single-page, 8.5” x 11” printed form includes the borrower’s name and address, space for a Realtor’s name and address, and the loan officer’s name and contact information. The Cash-to-Close summary provides a concise summary of bottom-line costs that every borrower will appreciate.
Loan Comparison
The Loan Comparison tool generates side-by-side loan comparisons, making it easy to compare different loan programs. Quickly access loan program scenarios for fixed, ARM, and government loans. Easily generate printouts showing your borrower a detailed comparison of the possible loan programs they may qualify for.
Debt Consolidation Tool
The Debt Consolidation tool in Point takes data from the liabilities section of the loan application and allows you to generate “what if” scenarios for your clients. Within minutes, you can show a prospective borrower how different ratios are created when selected debts are paid off. Basing your analysis on the prospect’s current outstanding debt is easy—simply use one of the credit reporting interfaces in Point to download the latest in-file reports from up to three bureaus into the liabilities section of the loan application. Select and deselect desired trade lines to be paid off to create different “what if” scenarios for your borrower to review.