Ask an Expert {First-Time Home Buying}
Q&A with Mortgage Loan Officer Tiffany Hentrup
Tiffany Hentrup knows the mortgage lending process inside out. Having lived on the Eastside since 2001, she’s knowledgeable on the ins and outs of the home-buying process. Tiffany has been a Mortgage Loan Officer for about 13 years and is celebrating 10 years with University Federal Credit Union this January. While Tiffany’s lending expertise runs deep, she discusses the basics on what every new home-buyer needs to know.
What is a common misconception about the mortgage lending process?
That it is terrible, or that it’s scary, that people need to be worried. There’s a lot of misinformation out on the internet. Just like how a real estate agent’s job is to find you a house, my job is to tell you what programs are going to be in your best interest. Another myth is that you need to put 20 percent down. There are programs where you can get lender credit, especially as a first-time homebuyer.
In general, what tip would you give first-time homebuyers?
I would say… first-time homebuyers sometimes want to buy something that’s not in the best condition and fix it up. Most lenders need a property to be in livable shape. It needs to have flooring and walls in order to qualify for a loan.
How does credit score play into the mortgage process?
Every lender has their credit score requirement. UFCU’s is 620. FHA (Federal Housing Administration) loans are government-backed and are not credit score-driven. The conventional loans are really credit score-driven, so the better the credit score, the better your interest rate will be. However, if you have a 750 credit score and compare it to an 800, that rate is probably still going to be the same. That’s another misconception. People will ask me, “What if I have an 810?” It’s still going to be the same rate as if you have a 750.
What is the best type of mortgage experience for first-time homebuyers?
Either an FHA loan or a conventional loan. It’s really dependent on each individual’s situation. If you’re a first-time homebuyer with a small down payment, FHA is going to be the way to go because you can put three-and-a-half percent down and get lender credits. But again, it’s really going to be tailored to each person’s background and needs. If you’re a first-time homebuyer who’s able to put 20 percent down and has a good credit score, you’re definitely going to go with a conventional loan rather than an FHA.
What is the most difficult part of securing a mortgage?
A “vanilla” borrower is someone who has a steady job, has their W-2, and doesn’t have a lot of debt. It’s very easy to see and prove their income. A borrower who’s self-employed can still be an excellent borrower, but self-employed folks can be a bit more complicated because we need to see a two-year history of them being self-employed. I counsel people, especially first-time homebuyers, from the get-go because we need to talk hard, real numbers, even if their situation isn’t exactly where they’d like it to be. Just cutting to the chase and letting them know, This is your story. It may be great, it may have some blemishes. I’m there to help you get those blemishes cleared and help you get on the road to buying a house.
What else should first-time home buyers know about the lending process?
This is one of the most important things you’ll ever do in your life. And sitting down with a real person is extremely important. Lenders should be willing to do that. With online lenders, you can’t call them at 7 p.m. and say, for example, Oh no, we heard our inspection went a little awry and we’re freaking out. Having someone who can advocate for you and that you can trust is huge. Find someone who will call you back and that you can count on to help you with this process.
Contact
Tiffany Hentrup, Mortgage Loan Officer
THentrup@ufcu.org
8303 N Mopac, Austin, TX 78759
Mortgage Loan Officer NMLS #509718
UFCU Mortgage Services NMLS #441215
www.ufcu.org
