THE ADVANTAGE
Your monthly recap of the most important
mortgage-related news, perspective, and advice
December 2023
2 minute read
Let’s face it, most members will be overflowing with excitement when they decide to buy a home.
You likely already know that the best first step is for members to call your credit union to get pre-qualified for a mortgage so they “know how much home they can afford”. While getting pre-qualified (or pre-approved) is a step all buyers eventually have to take, it’s important to stress that no lender can accurately determine how much home a buyer can afford.
You can, however, help your members find a comfortable mortgage payment by explaining the key factors affecting home affordability.
Factors that Impact Home Affordability
Lenders and home buyers answer the question “How much home can you afford?” differently.
Lenders look at factors like the debt-to-income ratio, the housing expense ratio, loan-to-value, debt, and income. After a careful review, they’ll determine how much they’re willing to lend. The member then needs to consider other factors to determine how much they can afford.
Utilities, upkeep, and maintenance must be factored into the equation. How much money will it cost to heat and cool the home? How much should be saved each month to establish a fund for repairs? Does new furniture, appliances, or decorations need to be purchased to turn the house into a home?
Saving for current or future goals and lifestyle may also cause a buyer to lower their spending budget. Whether it’s going back to school, a big overseas trip, building a nest egg or taking an early retirement, dreams and goals cost money. You want your members to be able to afford their home and their life outside of it.
You can’t come up with any of these answers for your members… but you can ask them the questions.
Estimating a Comfortable Mortgage Payment
Our new Mortgage Calculator will help members estimate how much they can afford by looking at monthly income, debt, and down payment amount.
Members will instantly see how much house they may be able to afford, and can request a quote for the most popular loan types. When they do, they’ll be put in touch with a mortgage loan officer who can answer their questions and help them figure out all the rest of the details.
Our partnering credit unions are able to get a co-branded version of this calculator for their website! If you’re interested in learning more about partnering your credit union with MAM please reach out to Jim Mitchell at (616) 466-7793 or [email protected].
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Who Is MAM?
Member Advantage Mortgage (MAM) is a Credit Union Service Organization (CUSO) that helps credit unions increase revenue by offering mortgage solutions to their members.
We achieve this by finding the mortgage solution that is in each individual member’s best financial interest.
What We Do
Since 2006, MAM has offered first and second mortgage origination and fulfillment services to credit unions. We also provide marketing tools (like our Mortgage Payment Calculator) to increase lead generation.
How We Can Help You
We’ll help you improve member satisfaction and deepen member relationships by offering or streamlining your mortgage delivery process. You’ll be able to serve current members so they don’t need to turn to the competition, all while increasing your mortgage revenue and generating non-interest income.
How You Can Learn More
This page goes into greater detail on exactly how we provide support and partner with credit unions.
You can also call Jim Mitchell, our Senior Vice President of Strategic Partnerships, to get answers to any questions about partnering with MAM.
Disclaimer:
This information is solely for credit union and mortgage professionals and should not be distributed or provided to consumers or the general public.
This is not an offer for extension of credit nor a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. Certain restrictions may apply. All approvals subject to underwriting guidelines. Not all applicants will qualify. Member Advantage Mortgage, LLC is an Equal Housing Lender. We do business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act.
Member Advantage Mortgage, LLC NMLS #1557. Alabama Consumer Credit License # 22717. Arkansas Combination Mortgage Banker-Broker-Servicer License # 104160. Colorado, Regulated by the Division of Real Estate, Mortgage Company Registration NMLS ID # 1557; check the license status of your mortgage loan originator at http://www.dora.state.co.us/real-estate/index.htm. Connecticut Mortgage Lender License # ML-1557. District of Columbia Mortgage Lender License # MLB1557. Delaware Lender License # 011515. Florida Mortgage Lender License # MLD781. Georgia Residential Mortgage Licensee, License # 36659. Louisiana Residential Mortgage Lending License NMLS ID # 1557. Massachusetts Mortgage Lender License # ML1557. Maryland Mortgage Lender License # 06-19371. Michigan 1st Mortgage Broker/Lender/Servicer Registrant # FR020440. Licensed by the North Carolina Commissioner of Banks, Mortgage Lender License #167098. Licensed by the New Hampshire Banking Department. New Hampshire Mortgage Banker License # 14242-MB. Licensed by the New Jersey Department of Banking and Insurance. New Jersey Residential Mortgage Lender License NMLS ID # 1557. Licensed by Pennsylvania Department of Banking. Pennsylvania Mortgage Lender License # 33868. Rhode Island Licensed Lender, License # 20112778LL. South Carolina Mortgage Lender License #1557. Texas Mortgage Banker Registration NMLS ID # 1557. Licensed by the Virginia State Corporation Commission, Virginia Lender License # MC-5045, Virginia Broker License #MC-5045. NMLS ID # 1557.
Visit www.nmlsconsumeraccess.org for complete licensing information.