Back to List

May 31, 2022

The mortgage process can seem both confusing and overwhelming. That’s understandable because buying a house is one of the most important and biggest purchases that anyone will ever make.

As a trusted local expert, you are relied upon by seasoned borrowers and millennials alike. The local interaction and convenience that you provide will help distinguish you from potential competition from the “Big Box” companies who are beginning to look at opportunities within the mortgage industry.

With 95% of homebuyers starting the process online, and 37% of 23 to 31-year-old homebuyers applying for a mortgage online, the logistics and technology that Caliber Wholesale offers will help set you apart from the competition.

Educating your borrowers about some mortgage basics that they can expect to encounter during the process will help you alleviate some of their unnecessary stress and anxiety.

Let’s start by looking at ten basic, yet important terms a first-time homebuyer should be familiar with. It will also provide you with a resource to provide your borrowers with the homebuying process.


A mortgage is a loan for real estate that borrowers need to apply for and repay monthly over a set number of years.


Having a pre-approval can provide leverage and create a competitive advantage.


Income is typically documented by the last two years of W-2s, pay stubs, and the last two federal tax returns.

Credit score

Having a higher credit score will make it easier to get approved. A lower score may also result in a higher interest rate.

Debt-to-income ratio

(DTI) Calculation of total gross monthly debts or payments divided by total gross monthly income.

Closing Costs

Approximately 2% to 5% of the purchase price, depending on which state they live in.

Private Mortgage Insurance (PMI)

If their down payment is less than 20% of the purchase price, they will likely need to pay Private Mortgage Insurance.

Down payment

The amount of money paid upfront. This is generally 20% of the cost of the property.


A mortgage should not be more than 28% of your gross income each month, and no more than 36% of your income should be in debt.


A third-party financial arrangement intended to protect both sides of a large sale.

Why Buy a House?

Rather than spending hard-earned money on rent every month, owning a home will be an investment in the future. Real estate assets are among the most valuable to own, as the value will generally increase.

Buying a house will provide your borrowers with an appreciating investment, a more stable housing cost, a source of ready cash, and the freedom to personalize a warm space of your own.

Click here to check out some of the loan options we have for your borrowers.

With 97% of our loans closing on time and Caliber Wholesale maintaining a 67% purchase mix, you can be 100% confident that purchase loans are who we are.

We will help you close business!

Let’s talk today about mortgage options and help your borrowers achieve their dream of homeownership.