How We Select Your Loan Program
When you apply for a mortgage with us, we’re asking ourselves a single, critical question that guides our work:
“What’s the most cost-effective way for this borrower to finance their home?”
That question drives the selection of the loan options we present to you. While it sounds simple, answering that question requires experience, flexibility, and the ability to see every piece of your financial picture in context. For many clients we can start zeroing in on the best option quickly, for others we’ll have to do some extra math. Here’s our process for determining which option is most cost effective for our clients.
Step 1: Understand the Full Picture
Before we talk, we listen. We get a clear sense of:
Your income and how it’s structured
Your available assets and liquidity
Your credit profile
The kind of property you’re buying
Your timeline, goals, and flexibility
Step 2: Start with Assets
Assets are more than a down payment. We look at:
How big your down payment has to be to hit key pricing breakpoints (5%, 10%, 15%, 20%)
How much to hold in reserve, especially if the home needs work or your income varies
Whether paying off debt is better than applying that same cash toward the down payment
We don’t just ask “how much do you have?” We ask “how can we put it to best use?” If you don’t have anything saved that’s ok, don’t let that stop you from pursuing home ownership. We’ll talk about qualifying for down payment assistance, and all other low down payment options that might be available to you.
Step 3: Evaluate Credit
Your credit score affects more than approval. It shapes:
Loan-level pricing adjustments — tiered rate costs across credit score ranges
Mortgage insurance costs — especially on conventional loans
Eligibility for certain programs or exceptions
If your score is close to a pricing tier boundary (e.g. 679 vs. 680), we may recommend short-term strategies to boost it.
Step 4: Analyze Loan Structures
We don’t just present loan options. We run multiple options through our calculators and analyze:
Total financing costs
Cash needed at closing
Short and long term projections
How each option affects your long term goals
We don’t assume FHA is better just because the credit score is low, or that conventional is better because its higher. We let the numbers speak.
Step 5: Consider Property Type
The home you’re buying matters. We assess:
Property type
Condition
Location (e.g. rural zoning, high wildfire area)
Step 6: Select the Right Lender
Most borrowers think loan programs are standardized. They are to some extent, but each lender has what we call overlays. Overlays are additional restrictions imposed by lenders in addition to any imposed by the agency such as Fannie Mae, FHA, VA, etc. This can mean different risk adjustments resulting in vastly different interest rates, or it can mean that a transaction might proceed at one lender where another will deny it.
We choose lenders based on:
Program availability and flexibility
Overlay policies
Rate competitiveness
Responsiveness and access to personnel
Just because a loan is technically eligible doesn’t mean a given lender will approve it. We know who will.
Step 7: Present Strategy Options
After analyzing, we present the top options side-by-side in a clean, visual, and easy to understand comparison. You’ll see:
Monthly payments
Total closing costs
Total cash due at closing
Financial comparisons between loan options
Key trade-offs (e.g. keep more cash vs. lower monthly cost)
Long term and short term projections
Final Thought:
We strategize based on your situation.
The goal is always the same:
To get you the most cost-effective financing available.