About Us

About Us at Gustan Cho Associates

Gustan Cho Associates is a national five-star mortgage broker licensed in multiple states with no lender overlays on government and conventional loans. The team at Gustan Cho Associates has experienced exponential growth since 2012 due to its no lender overlay business model on government and conventional loans.

We have a national reputation for being a one-stop mortgage shop due to not just offering traditional government and conventional loans but also offering dozens of non-QM mortgage programs.

The reason why the team at Gustan Cho Associates is so successful is due to all of our associates being available and hands-on with our clients and realtor partners 7 days a week. Most mortgage borrowers, realtors, and loan officers do not know that a national one-stop mortgage broker like Gustan Cho Associates exists. Find out how Gustan Cho Associates combines its mortgage knowledge, organic SEO, specialty lending, and training with GCA Forums to serve clients across the U.S.

Gustan Cho Associates has two primary networks

Gustan Cho Associates Mortgage Group is national mortgage broker and a DBA of Coast2Coast Mortgage, LLC NMLS 376205 is an all-in-one, one-stop lending shop. Our mortgage loan originators are all NMLS licensed. We are licensed in most of the 48 states and have a national reputation of being able to close mortgage loans other lenders cannot. 

Over 80% of our borrowers are folks who could not qualify at other lenders due to a last-minute mortgage loan denial or stress during the mortgage process. 

We have created and structured our website with up-to-date content that benefits consumers, loan officers, mortgage professionals, real estate agents, and third-party professionals. Gustan Cho Associates provides a platform for mortgage education, organic search, consumer acquisition, mortgage applications, and loan officer recruiting.

How Our Borrowers Benefit from Gustan Cho Associates

Gustan Cho Associates states that the majority of clients reach out after a denial or trouble securing a loan from other lenders. Some potential clients have no choice but to reach out after failing to find a suitable lender for their program.

Gustan Cho Associates states that its current data show a network of more than 300 wholesale lenders, investors, and other financial institutions.

Gustan Cho Associates cannot promise that every borrower will qualify for a loan. The team at Gustan Cho Associates reviews each borrower’s full profile and, when relevant, looks at why a previous lender declined the application to see if there might be a loan option available.

About Us: About Our Borrowers

Our borrowers are not the only folks who appreciate Gustan Cho Associates as being the top mortgage broker in the nation. But so do all of our mortgage loan originators, office personnel, underwriters, support, and operations personnel. The average loan officer at Gustan Cho Associates has been with the company for 5 years. That says a lot.

Gustan Cho Associates Business Model

About Us: Gustan Cho Associates Business Model and Mortgage System: Gustan Cho Associates is a national mortgage broker , consumer education, content publishing, and professional online community training platform.

Find out how Gustan Cho Associates combines its mortgage knowledge, organic SEO, specialty lending, and training with GCA Forums to serve clients across the U.S.

Gustan Cho Associates is a national mortgage broker licensed in multiple states with a national reputation for being able to do loans other mortgage lenders cannot.  Unlike other mortgage and real estate websites, our website at Gustan Cho Associates is not a lead generation site. We are licensed mortgage brokers. Most of our blogs and guides is authored by veteran NMLS licensed mortgage loan originators, expert real estate agents, or third-party practicing professionals.

About Us: The Team at Gustan Cho Associates

Gustan Cho NMLS 873293 is the National Managing Director of Gustan Cho Associates. Our team of licensed mortgage loan officers and support staff is experts in originating and funding loans with no lender overlays. Over 80% of our borrowers represented are folks who contact us because they either got a last-minute loan denial or were going through major stress with their original lender. That is because of one reason and one reason only. The loan officer did not properly qualify the borrower or because the loan officer was not familiar with their lender overlays. The team at Gustan Cho Associates close most loans close in 30 days or less.

Loan Scenario Help Desk

Gustan Cho Associates is a national mortgage broker licensed in multiple states with no overlays on government and conforming loans and are experts in non-QM and alternative lending options:

• Our team of veteran mortgage professionals is ready to answer any questions home buyers or homeowners with mortgage inquiries
• The mortgage industry is so complex with new regulations that are constantly changing
• With new rules and regulations is being implemented, our licensed and support staff always keep updated with the most recent agency mortgage guidelines to better serve our clients
• There are countless homebuyers, homeowners needing refinancing, real estate investors needing financing
• Investors seeking financing often go to a lender
• Many times they are told that they do not qualify for a loan
• Many times, the lender they go to do not educate or take the time with potential borrowers
• Oftentimes, lenders may not qualify them
• However, there are other companies out there that the mortgage loan applicant may qualify

Our goal at Gustan Cho Associates is to inform the public that if there is a will, there may be a way and create a one-stop-shop mortgage and real estate online community. That is why Gustan Cho Associates was created and launched.

About Us: Our Mission at Gustan Cho Associates

Gustan Cho Associates Mortgage & Real Estate Resource Center is a subsidiary of Gustan Cho Associates. Its mission is to offer the latest news and opinions of real estate and mortgage industry experts on real estate, credit, and lending-related topics. The real estate and mortgage industry has gone through major changes since the Great Recession of 2008. New regulations and lending guidelines were created and implemented. This was often confusing even to those who are real estate and mortgage professionals.

Gustan Cho Associates at a Glance

Since 2012, Gustan Cho Associates’ business model has focused on supporting borrowers who do not meet the traditional lending criteria often used by banks, credit unions, and mortgage companies with tight lender overlays.

Gustan Cho Associates Builds Upon and Integrates Many of the Concepts Listed Below:

• A nationwide system for mortgage origination
• A unique, creative, and specialized mortgage problem-solving system
• A mortgage and real estate education resource
• A consumer and marketing tools platform
• A real estate and mortgage news service
• A loan origination training site and resource
• An online professional community and network
• An indexed knowledge base
• A recruiting and networking system
• Real mortgage case studies
• Consumer and professional community
• The network aims to do more than just generate mortgage applications.
• Its goal is to reach the entire mortgage and real estate market and provide all the related education.

A Proven Business Model Since 2012

Gustan Cho Associates integrates both organic content and specialized mortgage business models to service their clients. The public-facing About page states that the business model primarily centers on borrowers who suffer from lender overlays and on borrowers with nontraditional income and other difficult-to-place mortgage clients. GCA has mainly grown through organic traffic, not by buying internet leads as many people might expect.

 

About Us: Business Model of Gustan Cho Associates Takes These Inquiries and Formalizes Them into the Following:

Mortgage inquiry → Article → Trust → Free consultation → Loan App → Doc review → Loan Program → Pre-Approval → Process → Underwriting → Final loan Docs.

About Us: Access to a Broad Lending Network

Gustan Cho Associates states that they have access to over 300 wholesale lenders, mortgage investors, and financial institutions.

That Network May Include Partners That Provide:

• FHA loans
• VA loans
• USDA loans
• conventional loans through Fannie Mae
• conventional loans through Freddie Mac
• Jumbo loans
• Non-QM loans
• Bank Statement loans
• DSCR loans
• Asset Depletion loans
• 1099 Only programs
• P&L Statement loans
• ITIN loans
• Foreign National loans
• No Ratio Investment Property loans
• Fix and Flip loans
• Bridge loans
• Commercial loans
• Business Purpose loans
• Business lines of Credit
• Home Equity Lines of Credit
• Financing for Manufactured Homes
• Financing for Modular Homes
• Chattel loans
• Barndominium loans
• Condotel loans
• Non-Warrantable Condo loans
• Mixed Use Property Loans
• 2-4 Unit Property Loans
• Multifamily Loans
• Specialty and Niche Mortgage Programs

Not all programs will be available to every state, and not every borrower or property will be eligible. Investors may add, change, suspend, or withdraw programs.

Having a broad lending network does not mean every loan will be approved. Instead, it lets the team at Gustan Cho Associates look at several options before deciding a loan cannot move forward.

When Gustan Cho Associates identifies a lender offering a program that the company needs with whom Gustan Cho Associates does not have a pre-existing business relationship, Gustan Cho Associates may work to establish a new wholesale business relationship. Internal company documents indicate that this process may take around 72 hours, though the lender’s onboarding will still depend on approvals, licensing, compliance, and operational assessments.

Detailed Loan Qualification Prior to Preapproval

The fourth element is a detailed borrower analysis. A loan preapproval must not be given simply because a borrower has completed the application or has an estimated credit score.

A Detailed Analysis May Consist of:

• The completed mortgage application
• A tri-merge mortgage credit report
• Credit scores
• Credit payment history
• Housing payment history
• Collection accounts
• Charge-offs
• Disputed accounts
• Judgments
• Tax Liens
• Bankruptcy
• Foreclosure
• Short Sale
• Deed-in-lieu of Foreclosure
• Employment history
• Type of income
• Income stability
• Assets
• Bank statements
• Monthly liabilities
• Debt-to-income ratios
• Reserves
• The down payment
• Gift funds
• The type of property
• Type of occupancy
• Estimated property taxes
• Homeowners insurance
• Homeowners Association dues
• Loan Amount
• State
• County
• Automated underwriting
• Manual underwriting
• Underwriting eligibility
• Lender overlays
• Investor requirements

The goal is to identify all potential issues before the borrower enters into a purchase contract or before the file goes to final underwriting.

What is Unique About Gustan Cho Associates Compared to Other Mortgage Lenders?

Concentration on Clients with Complex Loan Files

Several lenders have systems in place to process standard loans quickly and efficiently.

The Above Works for Clients With:

• Excellent credit
• Consistent W-2 employment
• Low debt-to-income ratios
• Adequate savings
• Traditional loans
• Clean credit histories
• Simple documents

Gustan Cho Associates efficiently processes standard client files; however, the firm’s distinguishing capability lies in its expertise with complex loan scenarios.

Complex Files Require:

• Experienced loan officers
• Income calculations done by hand
• Manual underwriting
• Different wholesale lenders
• Non-standard income documentation
• Compensating factors
• Credit rationales
• Reserves
• An additional borrower
• Different property programs
• Pre-approval is conducted more thoroughly.
• Non-QM financing

Knowing Lender Overlays

A lender overlay is an additional loan requirement that a lender imposes that goes beyond the minimum requirements set by a specific agency, investor, or automated underwriting system.

For Instance, a Specific Loan Program May Allow a Certain:

• Credit score
• Debt-to-income ratio
• Credit history
• Manual underwriting
• Collection-account treatment
• Reserve level
• Property type
• Bankruptcy clearance period
• One lender may impose a more stringent requirement.
• That additional or more stringent requirement is referred to as a lender overlay.

Gustan Cho Associate’s no-overlay stance means the firm pairs qualified government and conventional borrowers with lending partners that comply with the respective agency and automated underwriting guidelines, without any overlays on loans. This also means that no loan is ever free of requirements.

Every Mortgage is Still Subject to:

• Applicable laws
• Guidelines from agencies
• Underwriter requirements
• Investors
• Findings from automated underwriting
• Manual underwriting
• Property standards
• Appraisal requirements
• Mortgage insurance
• State licensing laws
• Fraud/quality-control reviews
• Final underwriting approval

Gustan Cho Associates has specialized content addressing FHA mortgages without lender overlays. This content clarifies why lenders provide different responses to borrowers.

A Broker and Correspondent Lending Platform

Gustan Cho Associates has the structure of a national correspondent lender with a mortgage brokerage. In relation to the particular loan being processed, the lending program, the relevant investor, state, and operating channel,

Gustan Cho Associates Has the Ability to Utilize:

• Wholesale mortgage brokerage
• Non-delegated, as well as delegated, correspondent lending
• specialized lending partnerships
• Commercial or business-purpose referral partnerships
• Third-party origination relationships
• The benefit to the borrower is having multiple options.

Once lenders become captive, they can only work with their products and underwriting policies. Brokerages and correspondent platforms can work with multiple lenders and product types. As applicable, the specific licensed entity, NMLS number, lending channel, and transaction must be disclosed to the borrower. Gustan Cho Associates also sees itself as a brokerage with comprehensive options.

Company Programs Cover the Following Categories:

• Government-Backed Mortgages
• FHA Loans
• VA Loans
• USDA Loans
• FHA 203(k) Loans
• FHA Streamline Refinances
• VA Loan Refinance Streamline
• Government Manual Underwriting
• Conventional and Jumbo Mortgages
• Fannie Mae Loans
• Freddie Mac Loans
• High-Balance Loans
• Jumbo Loans
• Second/Home Financing
• Investment Property Financing
• Two to Four Unit Mortgages
• Cash-Out Refinancing’s
• Non-QM and Alternative Lending
• Personal Bank Statement Mortgages
• Business Bank Statement Mortgages
• DSCR Loans
• 1099 Only Mortgages
• Profit and Loss Statement: Loans
• Asset Depletion Loans
• ITIN Mortgages
• Foreign National Mortgages
• No Ratio Investment Property Loans
• Programs for Recent Bankruptcy or Foreclosure
• Non-QM Jumbo Loans
• Specialty Property Financing
• Condotels
• Non-Warrantable Condominiums
• Manufactured Homes
• Modular Homes
• Chattel Loans
• Barndominiums
• Mixed Use Properties
• Multifamily Properties
• Business & Investment Property Financing
• Business Purpose Loans
• Commercial Real Estate Loans
• Lines of Credit
• Working Capital Financing
• Bridging Loans
• Fix and Flip Loans
• Rental Portfolio Financing

Program availability is subject to change and is not guaranteed, depending on the borrower, property, state, licensing, investor, market, and current lending guidelines.

How a Typical Borrower Finds Gustan Cho Associates

A Common Example is the Following.

• A potential homebuyer reaches out to a mortgage lender and fills out a loan application.
• The homebuyer would provide the following supporting documentation:
• The last few pay stubs.
• The last few years of W-2 forms.
• Bank Statements.
• A valid ID.
• Housing history.
• Employment information.
• Asset documentation.
• Other missing documentation as requested.
• The mortgage lender would complete a tri-merge mortgage credit report.
• The loan officer would review the application and may submit it to an Automated Underwriting System for screening.
• The homebuyer would be notified that the loan would not be approved.
• The homebuyer may contact an additional mortgage lender, submit the same application, and ultimately receive the same outcome: denial of the requested loan.
• At this stage, the borrower begins to conduct online research.

Borrowers Might Search the Following:

• Lenders without overlays
• FHA lenders who accept bad credit
• Getting a mortgage after a Chapter 13 bankruptcy
• How to get a VA loan after a mortgage denial
• How to get a mortgage with collections
• Getting a mortgage with a high debt-to-income ratio
• Bank statement loans with no tax returns
• Manual underwriting loans
• One of the searches may direct them to GustanCho.com.
• The borrower will review the article and identify the denial cause as the same issue noted previously.

The Borrower Might Check the Following Prior to Reaching Out to Gustan Cho Associates:

• Is GCA a real mortgage company?
• How long have they been in business?
• The licensing and disclosures
• NMLS info for the loan officers
• Reviews and ratings
• What programs they have
• GCA Forums
• Who the authors are
• What their contact info is

The consumer might call, email, fill out their contact form, or even start a secure online application.

The Initial Gustan Cho Associates Borrower Consultation

• The borrower’s first review is not a sales call.
• The purpose is to review the borrower’s information and determine whether a viable lending option exists.

About Us: Previous Experience of Our Borrowers

You Might be Asked the Following Questions Regarding Your Past Experience:

• How did you find out about Gustan Cho Associates?
• Did you submit a loan application with another lender?
• Did they run your credit?
• Did they send you a preapproval?
• Did you get a contract for the purchase?
• Did an underwriter issue a denial for your loan?
• What was the reason the lender gave?
• Did the lender mention an overlay?
• Did you receive any automated underwriting results?
• Is there a pre-determined date for closing?
• What information did the other lender gather?

The Above Questions Help Identify the Difference Between:

• A denial due to underwriting
• An initial opinion by a loan officer
• An overlay by a lender
• An application was not fully submitted.
• A miscalculation of the income
• An issue with the property
• A problem with automated underwriting
• Missing documents
• A misalignment of the loan program
• A temporary problem with the qualification

Understanding the Property and Housing Goals

• The loan officer might ask you:
• Are you buying or refinancing?
• What kind of property are you looking at?
• What’s the address of the property?
• Will the property be your primary residence, a second home, or an investment?
• How much is the estimated purchase price?
• How much are you planning to put down?
• What are the estimated property taxes?
• What is the estimated cost of homeowners’ insurance?
• Will there be HOA dues?
• What would your ideal monthly housing payment be?
• What are you currently paying for your rent or your mortgage?
• How much payment shock would there be?
• Are you buying, or have you already executed a purchase contract?
• What is the closing date?
• The most you can be approved for is not always what you should spend.
• A mortgage consultation takes into account your ability to qualify and your ability to pay.

The Loan Officer Obtains Details Regarding All Prospective Borrowers, Including the Following:

• Names of all current employers
• Job titles
• Employment history
• Industry experience
• Base monthly salary
• Average work hours per week
• Overtime hours
• Average bonuses
• Commission
• 1099 income
• Self-employment
• Rental income
• Social Security income
• Pension income
• Disability income
• Military income
• Child support and alimony income
• Investment income
• Other income

In certain cases, variable income can be considered even if it is not constant over a period of two years. However, over time, bonuses, commissions, 1099 income, and other variable income will require a substantiated history of that income to demonstrate it is stable and likely to continue. The precise computations will be determined by the loan program, the findings from automated underwriting, the employer verification, and the requirements set forth by the lender.

There are Instances When Tax Returns Must be Requested, and May be Required for W-2 Employees, Particularly Those Who:

• Are self-employed
• Own a business
• Have 1099 income
• Have received rental income
• Have earned commission income
• Own investment real estate
• Have income or losses reported on tax returns
• Are required to provide tax returns based on the specific loan program
• Have an automated underwriting or lender condition that mandates the submission of tax returns

Reviewing Assets

The Loan Officer May Review the Following Assets:

• Checking accounts
• Savings accounts
• Retirement accounts
• Investment accounts
• Gift funds
• Down payment assistance
• Earnest Money
• Cash required to close the loan
• Reserves
• Large deposits
• Business funds
• Proceeds from other properties
• Seller concessions

Those assets must be documented and sourced in the manner prescribed by the specific loan program.

Evaluating Credit and Liabilities

Before the loan officer pulls a new mortgage credit report, they might ask the borrower for estimated scores or scores from a previous lender. Credit reports from free credit-scoring sites can serve as a rough starting point for a conversation, although they will not match the scoring model used for the mortgage.

The Loan Officer is Likely to Ask About the Following:

• credit cards
• auto loans
• student loans
• personal loans
• installment loans
• buy now, pay later accounts
• loans for which the borrower is a co-signer
• debts
• child support
• alimony
• tax payment plan
• judgments
• collection accounts
• charge-offs
• recent late payments
• late mortgage payments
• bankruptcies
• foreclosures
• short sales
• deed in lieu of foreclosure
• repossessions
• disputed credit accounts
• The loan officer is specifically concerned with the borrower’s recent payment history.

Most mortgage programs focus on the most recent 12-month period to determine whether the borrower has regained financial stability.

From Consultation to Safe Mortgage Application

If the preliminary conversation suggests that the borrower may qualify, or that the borrower may qualify with a specific plan, the loan officer will direct the borrower to a secure online mortgage application.

The Borrower Will be Required to:

• Complete the mortgage application.
• Provide a Credit Review Authorization.
• Provide the requested documents.
• Describe the major open credit and employment gaps.
• Provide information regarding the property and/or the purchase contract.
• Provide information concerning the time frame regarding any pertinent contractual obligations.

Documents needed to complete the mortgage application must be submitted via a secure system rather than an unsecured one.

Rescue Files and Borrowers Already Under Contract

Gustan Cho Associates Receives Many Inquiries Under the Following Circumstances:

• The file was denied by a previous lender.
• The loan was stuck in underwriting.
• A last-minute condition was generated by the lender.
• The closing date was imminent.
• The borrower paid for the appraisal.
• The borrower paid the earnest money.
• The seller was going to withdraw the purchase agreement.
• The borrower was given inconsistent answers.
• These situations represent time-sensitive rescue files.

If the credit reporting systems allow it and the borrower consents, the borrower may be granted access to a secure site to obtain a tri-merge mortgage credit report.

The Mortgage Loan Originator and Loan Officer Assistant May Then Be Able to Analyze:

• The new application
• The credit report
• The purchase agreement
• The previous lender’s findings
• The status of the appraisal
• Income documents
• Asset documents
• The title and insurance
• The scheduled closing date

Gustan Cho Associates cannot guarantee approval/closing of every rescue file by the date stated in the contract. However, the best chance to determine if the file can be rescued is to provide the team with complete and accurate information as early as possible.

The Detailed Preapproval Process at Gustan Cho Associates

Step 1: Review the Application Line by Line

Missing information occurs if the loan officer/loan officer assistant fails to ensure the application contains all completed fields.

Also, the Review Uncovers:

• Wrong addresses
• Inaccurate employment history
• Properties that the applicant has but did not disclose
• Liabilities the applicant has but did not report
• Inaccurate income
• Inconsistent occupancy
• Inaccurate property description
• Inaccurate loan amount
• Incomplete declarations
• Bankruptcy and foreclosure dates
• Ownership
• Co-borrowers

Step 2: Review All Supporting Documents

The application is incomplete, so the loan officer must ensure that all the supporting documents have been submitted.

This Might Consist of:

• Pay Stubs
• W-2 Forms
• Tax Returns
• Bank Statements
• Employment Verifications
• Award Letters
• Pension Statements
• Bankruptcy Documents
• Divorce Decrees
• Child Support Orders
• Mortgage Statements
• Homeowners Insurance
• Purchase Contracts
• Property Tax Records
• Identification

Step 3: Qualifying Income

The income you have may be different than the gross income that is reflected on your pay stub. The Qualifying Amount May Be Affected by:

• Base income
• Average number of working hours
• Income that is not consistent
• Income that is declining
• Income from commissions
• Income from overtime
• Income from bonuses
• History of being self-employed
• Business expenses
• Income or loss from a rental property
• Analysis of tax returns
• Continuance requirements
• Calculations that are specific to a loan program

Step 4: Monthly Liabilities and DTI

The Loan Officer Computes the Likely Payment for the Housing, Which Includes:

• Principal
• Interest
• Property Taxes
• Homeowners Insurance
• Mortgage Insurance
• Flood Insurance
• Association Dues
• Other related obligations of a property

This payment is combined with the borrower’s other monthly liabilities to compute the DTI ratio.

About Us at Gustan Cho Associates: Our Mission to Educate Consumers on Mortgage Programs and Guidelines

Even though Gustan Cho Associates is a mortgage company knowns for not having any lender overlays on government and conventional loans, we are different than other lenders. Our goal and mission are to educate and inform borrowers about the various loan programs available. We also educate and inform consumers through our blogs and videos about the basic agency mortgage guidelines. We have thousands of blogs written by reputable real estate and mortgage professionals.

Gustan Cho Associates Mortgage & Real Estate Resource Center Will Often Publish Publications and Blogs by Experts Such as the Following Professionals:

• mortgage consultants
• real estate agents
• real estate attorneys
• title officers
• insurance agents
• home inspectors
• contractors
• other professionals

The Articles Written and Published on Gustan Cho Associates Mortgage & Real Estate Resource Center Are Sole opinions of the Author

• We cannot attest to the accuracy and validity of the content
• Readers should not construe as 100% accurate
• Solicitations by our writers and guest writers are not permitted
• Our mission is to educate the general public about real estate and mortgage-related topics to make their home buying or refinance experience less stressful
• Consumers should always shop for real estate and mortgage services
• They should not just decide to go with the first real estate and/or lending company they consult with
• Please subscribe to our residential mortgage Newsletter
• Feel free to write us or contact us on topics that you would like to request to be written on our Blog

Thank you for visiting the About Us section of Gustan Cho Associates Mortgage & Real Estate Resource Center

Step 5: Choose a Loan Program

The Loan Officer Will Compare the Loan Programs That Are Available Based on:

• Credit
• Income
• Assets
• Type of Property
• Occupancy
• Amount of Loan
• Down Payment
• Reserves

History of Bankruptcy or Foreclosure

• Automated underwriting eligibility
• Manual underwriting eligibility
• Investor requirements
• State availability

Step 6: Automated Underwriting System

For the Specific Loan Program, the file May Be Submitted Through Systems Such As:

• Fannie Mae Desktop Underwriter
• Freddie Mac Loan Product Advisor
• Automated underwriting systems of the government
• Investor-specific systems with automated underwriting

An automated underwriting decision for a specific program does not constitute loan approval. It is primarily a risk assessment and documentation review.

Step 7: Evaluate the Findings

Evaluating findings may lead to the following outcomes: approved, accepted, referred, ineligible, or requiring further review.

When the Result Is Approved/Eligible or Accepted

• The team examines the findings to ensure the documentation aligns with the input data.
• Pre-approval may be granted if the loan officer believes the following:
• The application is complete with no discrepancies.
• The borrower is eligible.
• All documents are provided
• The property and payment are reasonable.
• There are no concerns in the file that may warrant a decline.
• The borrower is aware and accepts the outstanding conditions.
• When the result is referred to
• A refer result is not necessarily the endpoint.

The Loan Officer May Make a Determination Based on the Following Factors:

• The guidelines allow for manual underwriting.
• The borrower meets the criteria for manual underwriting.
• Compensating factors are present.
• There was an erroneous data input.
• The borrower’s debt may be viewed as DTI.
• The result may be strengthened with additional credit.
• There needs to be a reduced loan amount.
• There may be a more suitable program.
• Another lender has fewer restrictions.
• A consideration of non-QM lending is appropriate.

When the Result Is Ineligible

An ineligible result requires the team to analyze the reasons the loan is ineligible.

Reasons May Consist of:

• The loan program selected
• The amount of the loan
• The type of the property
• Occupancy type
• The timing of bankruptcy
• The timing of foreclosure
• Citizenship or residency
• Credit history
• Income or employment verification
• DTI
• Funds available to close
• Errors in data entry

The team may consider the reasons for ineligibility and determine whether to address those concerns or to warrant a new program.

Choosing the Wholesale Lender or Investor

After reviewing the borrower’s profile, the loan officer will select the appropriate lending channel. This choice cannot solely be based on the interest rate.

The Team May Look at the Following:

• Program eligibility
• Lender overlays
• Credit score requirements
• Debt-to-income limits
• Manual underwriting policies
• Property requirements
• Reserve requirements
• Income documentation
• Turnaround times
• Appraisal procedures
• Underwriting experience
• Closing deadlines
• Interest rate
• Points
• Lender credits
• Mortgage insurance
• Total closing costs
• Overall borrower benefit
• The lender with the best rate does not necessarily approve the most complicated loan.

The best placement takes into account eligibility, cost, timing, risk, and the borrower’s objectives.

What Happens After Preapproval?

A mortgage preapproval indicates the beginning of the mortgage process, although it does describe a step towards final loan approval.

Once a Property is Selected and a Purchase Agreement is Accepted, the Loan Typically Proceeds Through the Following Steps:

• The applicant and borrower record an updated application and disclosures.
• The loan officer and borrower discuss rate and pricing, and the loan is issued a Loan Estimate.

The Loan, Applicant, and Borrower Proceed Through the Following Steps:

• The loan and borrower are under the mortgage process.
• The loan and borrower are submitted to the appraisal.
• The loan proceeds through title work.
• The borrower obtains homeowners’ insurance.
• The loan is submitted to the underwriter.
• The loan is conditionally approved, and the underwriting conditions are cleared.
• The loan is fully approved.
• The borrower and loan officer discuss the Closing Disclosure.
• The loan is verified one final time, and the borrower signs.
• The loan is fully funded.

This process depends on the cooperation and collaboration of the loan officer, the loan officer’s assistant, the loan processor, the loan underwriter, the loan closing department, the title company, the insurance company, the appraiser, the real estate agents, and the borrower. Gustan Cho Associates’s original concept and workflow aimed to establish a step towards final loan approval. The goal of Gustan Cho Associates’s operation was to help the loan officer ensure the borrower achieved the best possible outcome in funding their mortgage.

Broker Compensation and Consumer Transparency

Gustan Cho Associates’s operation has integrated a unique compensation structure in which the brokers of GCA’s selected lenders receive a lender-paid fee capped at 2.75%. The fee and compensation structures must be explained carefully, and the documentation must fully describe them.

In some transactions, the fee may be paid by the financial institution; in others, by the borrower; and in some, it may not be paid at all.

The mortgage broker may not receive a fee from the institution and the borrower for the same transaction. Payments made by an institution to a third-party loan originator and paid by others are noted on the closing disclosures. Payments made by the borrower are noted as borrower-paid. Federal laws prohibit certain dual-compensation and steering practices and restrict payment based on loan terms. It would be foolish to think that all Mortgage Bankers earn more than Brokers, or that any one factor is solely responsible for a loan being the lowest available.

Borrowers Should Review the Following to Find the Best Loan:

• Interest Rate
•  Annual Percentage Rate (APR)
• Discount Points
• Origination Fees
• Lender Credits
• Mortgage Insurance
• Cash to Close
• Prepayment Terms
• Total Cost of the Loan
• Cost of the Loan over 5 years
• Loan Estimate
• Closing Disclosure

Previous Denials Could Include Many Reasons, Such as

• Having a lender overlay
• Income generated incorrectly
• The debt-income ratio is too high.
• Manual underwriting
• Low credit score
• Bankruptcy
• Foreclosure
• Collection accounts
• Charge-offs
• Late payments
• Being self-employed
• Having an income that is not consistent
• Having restrictions on a property
• Having a loan program that is not offered

First Time Homebuyers

First-Time Homebuyers Have Difficulty Understanding the Following.

• Preapproval
• Down payments
• Closing costs
• Seller concessions
• Gift funds
• Mortgage insurance
• Property taxes
• Homeowners insurance
• Contracts
• Appraisals
• Inspections
• Underwriting
• Closing

Veterans and Active-Duty Service Members

Gustan Cho Associates Covers the Following VA Topics

• VA residual income
• VA manual underwriting
• Collections and VA loans
• Charge-offs and VA loans
• VA loans after bankruptcy
• VA loans with high DTI
• VA lender overlays
• VA refinancing
• VA appraisals

Borrowers After Bankruptcy or Foreclosure

The Network Covers the Following Topics:

• FHA loans and Chapter 13
• VA loans and Chapter 13
• Chapter 13 discharge
• Chapter 13 dismissal
• Chapter 7: Waiting period
• Foreclosure waiting period
• Short sale waiting periods
• Deed-in-lieu waiting periods
• Re-establishing credit
• Major credit events and non-QM options

Self-Employed Borrowers

• Possible programs
• Personal bank statement loans
• Business bank statement loans
• 12-month bank statement loans
• 24-month bank statement loans
• 1099-only mortgages
• Profit-and-loss-statement loans
• Asset-depletion programs
• DSCR investment property loans

Real Estate Investors

• Possible financing for investors
• DSCR loans
• No-ratio mortgages
• Rental property loans
• Portfolio loans
• Fix-and-flip financing
• Bridge loans
• Multifamily financing
• Cash-out refinancing
• Non-QM investment loans

Mortgage Loan Originators

Possible Advantages for Future Loan Officers at Gustan Cho Associates

• A reputable mortgage education brand
• Natural consumer inquiries
• Wide lender coverage
• Niche loan offerings
• Non-QM loan offerings

Education

• Support with operations
• Participation in content
• Visibility in the forum
• Referral connections
• Expertise with difficult loans
• Profiles of published authors

SEO and Content Creators

SEO and Content Professionals Receive:

• A developed mortgage site
• Past search info
• Countless articles
• Mortgage knowledge
• Consumer queries
• Topics of interest
• High-value keywords
• Loan info
• Organic power
• Calculators
• Connections
• Links
• A team of experts

Standardize Licensing Disclosures

Current public pages describe Gustan Cho Associates as licensed in 48 states and identify Massachusetts and New York as pending. Some pages also reference Washington, D.C., Puerto Rico, the U.S. Virgin Islands, or Guam. Every page should use the same verified disclosure.

The Approved Disclosure Should Identify:

• Licensed company
• DBA
• NMLS number
• Branch NMLS number
• States served
• Territories served
• Pending jurisdictions
• Office address
• Equal Housing disclosure
• Current sponsoring company

Remove Outdated Company References

Some older article footers still refer to prior affiliations and outdated NMLS or company information. These should be corrected across the entire website.

Frequently Asked Questions About Gustan Cho Associates

Final Thoughts on the Gustan Cho Associates Business Model

Gustan Cho Associates has developed a working business model that has been in operation since 2012. The model does not depend on a single lender, loan product, loan officer, keyword, or source of business.

It Combines:

• Mortgage origination
• Organic search traffic
• Consumer education
• Specialty lending
• A broad wholesale network
• Detailed preapproval
• Processing and operations support
• Loan officer training
• Mortgage news
• Community discussions
• Professional networking
• Searchable real-world knowledge

The strongest part of the business model and foundation of Gustan Cho Associates is its ability to connect consumer questions with real mortgage experience.

• A borrower searches for an answer.
• Gustan Cho Associates Website Provides the Education
• GCA Forums Online Community Provides the Discussion.
• The Team at Gustan Cho Associates Reviews the Individual Situation.
• The Lending Network Provides Possible Program Options.
• The Support and Operations Team Helps Manage the Transaction.

The completed experience creates new knowledge for future borrowers, loan officers, writers, and members. That is how Gustan Cho Associates has built a mortgage, education, organic-search, and professional community model that continues to evolve more than a decade after its launch.

Gustan Cho Associates publishes the opinions of experts to better inform public consumers. Our goal is to ultimately inform consumers when shopping for a mortgage loan.

The content on this website is solely the opinions of the author. Associate contributing editors at Gustan Cho Associates may or may not be licensed mortgage professionals. Under no circumstances is anyone allowed to quote rates and terms or solicit consumers unless they are licensed loan originators and licensed in the state where the borrower is applying for a mortgage. Gustan Cho Associates.