Equal Housing Lender
Streamlining the Path to Homeownership: The Benefits of Using HomePrep to get Clients Mortgage-Ready
Pam Marron • July 10, 2024
Empowering Clients on Their Journey to Mortgage Readiness with HomePrep
Mortgage readiness can be challenging for many clients. They often face setbacks like poor credit, student loan repayments, and insufficient down payments. While Mortgage Loan Originators (MLOs) can help with specific issues, there isn't a playbook that makes it easy. This is where HomePrep comes in. HomePrep connects MLOs, HUD Counselors, and clients, providing a structured pathway and expert guidance. With HomePrep, clients get the support they need to achieve their dream of homeownership. Below are the fundamentals of getting clients mortgage ready through HomePrep.
What do you do with clients who aren’t ready for a mortgage yet?
Most clients unprepared for a mortgage struggle with credit, student loan repayment, and down payment. While MLOs can often assist with individual issues, finding a comprehensive solution remains a challenge.
HomePrep connects MLOs, HUD Counselors, and clients seeking assistance.
The MLO:
- Signs up for HomePrep. Schedule a HomePrep Demo Here.
- Client signs a Memorandum of Understanding (MOU) and a Client Authorization to Release Financial Information that provides a credit at time of closing if the client returns to the referring MLO for their mortgage.
- Inputs detailed summary of client needs into HomePrep portal.
- Connects with HUD Counselors.
7 Services provided by HUD Counselors through HomePrep
- Credit help: short term (0-6mos) & long term (7mos to 5 yrs)
- Budgeting
- Student Loan Repayment Plan (SDS)
- Down Payment Assistance
- Homebuyer Education
- Freddie Mac HomeCoach automated findings using soft credit
- 6 mos of post-mortgage HUD counseling follow-up
What do HUD Counselors do to help clients?
On the initial assessment with a client, HUD counselor reviews soft credit, income and assets with client and then provides an Action Plan that includes the estimated timeframe of completion when client will be mortgage ready. The Action Plan is given to the client & MLO; great to share with the referring realtor and is updated as client progresses.
Final step of mortgage-readiness: Client file is run through the Freddie Mac Homecoach!
Freddie Mac Homecoach is used exclusively by HUD Counselors and only requires soft credit! HomeCoach is identical to the Freddie Mac LPA and enables HUD counselors to see if there is anything else delaying a client from moving forward with a mortgage. A MUST DO upfront for your clients!
What happens next?
As the referring MLO, you are notified that the client is mortgage ready! Most likely, you will already be communicating with the client through their journey to homeownership!
Schedule a HomePrep Demo Today
Ready to see how HomePrep can help your clients on their journey to mortgage readiness? Schedule a demo now and discover the powerful tools and resources available to you. Click the link to book your demo: Schedule a Demo. Empower your clients with the support they need to achieve their dream of homeownership!
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Questions answered about student loan repayment plans, default and more.