Realtors Information Center
Welcome to Two Rivers Mortgage Company. We look forward to developing a long term relationship with you and our shared clients. We'd love to meet with you as well. If after reading this you'd like to know more or get to know us better, please contact us and we'll set up a time to meet.
We're a Mortgage Brokerage
Simply stated, we are not the end lender. We are the advocate for our client that shops for them and finds them the best possible deal on a mortgage through our network of wholesale lenders. Typically, we can find our clients mortgages that are a half point to a whole point less than the interest rates at competing local banks and credit unions.
With a high credit score, we can complete the application in as little as 14 days. However, for our credit challenged clients, who normally would not be accepted by a bank or a credit union, these files do take longer to process. The more bumps in the road in the past, the more paperwork the lenders like to see. For these files, please allow a minimum of 45 days for the contract.
Terminology Variations & Other Differences
In the world of wholesale mortgage lending, a couple of terms are not quite the same as they are in portfolio lending. Here are a couple to be aware of:
Loan Commitment = Conditional Approval. This means that the lender will approve the loan if all the loan conditions are met.
Loan Approval = Clear to Close. This means that all of the conditions have been met and we can close the loan.
Final Appraisal = Final Inspection. If repairs are needed to have an appraisal meet standards, these terms will be used interchangeably.
We order our appraisals through an appraisal management company. This structure was set in place so that no lender would have undue influence on the valuation of an appraisal.
Our lenders give us access to all of the major programs that you would expect. We have access to:
Conventional 3% Down
Conventional 5% Down
We also have access to more alternative programs that you might not even expect are out there:
24 Months/12 Months/ 1 Month Bank Statements with no income reflected on tax returns for self employed or 1099 independent contractors
1st Day out of Bankruptcy
No Credit Score Mortgages
It's safe to say, that if the program exists, we have it. If your client needs help with their credit score, we also have the ability to help them get a new credit score in as little as 3 business days. We've now seen improvements of 120 points on one client with several other 50+ improvement stories.
When we first receive a contract, the first thing we look for is whether or not the contract includes a seller's credit. When we see one, you put the biggest smile on our faces and gratitude in our hearts.
The reason for this level is excitement is that a lot of borrowers are purchasing their first home. It's quite the intimidating process. For a FHA mortgage, they're saving up 3.5% for the down payment, closing costs, and a year's worth of insurance.
A seller's credit will both reduce the amount of money they need to bring to the table and also reduce the amount of money that they need to prove to the lender to get final approval/loan approval.
If the borrower is applying for a FHA mortgage, they can get a seller's credit of up to 6% of the sales contract. So for example, on a sales contract of $100,000 they can get a $6,382.98 sales credit. That would cover the majority (if not all) of the down payment, closing costs, and prepaid insurance.
The calculation is simply to take 100- the percent of credit, then take the contract amount divided by the factor. For instance on a FHA sales credit of 6%, 100-6=94. 100,000/0.94= $106,382.98. You could then have a seller's credit of 6,382.98 and get back to your original $100,000 selling price. The seller will have the amount they originally wanted and the buyer will have most of their down payment, prepaids, and closing costs covered.
If the borrower has another type of pre-approval from us, follow these maximum seller's credit guidelines: