Summary
In this article, we will show you how to easily compare different loan options for your clients, including costs for each loan, breakdowns of each payment, and the difference due at closing depending on the number of years they plan on living there, using the Loan Comparison Tool.
Navigating to the Purchase Loan Comparison Report
You can find your Purchase Loan Comparison Report within Client Manager as well as within the Loan Comparison sidebar menu.
Navigating through the Client Manager
Client Manager allows you to create reports for your clients using previously saved loan and property details, saving you time when building new scenarios. To learn more, click here.
Navigating through the Menu
To access the Loan Comparison - Purchase report using the left-hand sidebar menu, click Loan Comparison, then click Loan Comparison. By default, the Purchase report will be displayed.
Helpful Tip: You can also search and favorite reports, tools, and calculators. Click here to learn how.
Creating a Purchase Loan Comparison Report
1. Before you begin, make sure that the Purchase option is selected at the top of the page.
- If not already pre-filled, enter your client’s name and choose them from the dropdown list, or click + Add new to add a new client to your account.
- Fill in your client's details. Name and FICO score are required fields. Click Add.
- Type and select an address, city, county, or ZIP code from the dropdown list.
- Add the purchase Price.
- If the home has appraised for less than the purchase price, click the Add Appraised Value toggle and enter the Appraised Value. The appraised value cannot be higher than the purchase price. The tool will automatically calculate the difference as cash to close and the loan amounts will be based on the appraised value. The Cash Included for Appraisal Gap field is not editable.
- Property Tax will automatically populate with the county average tax rate, but this is editable.
- Monthly Home Insurance will also automatically populate, but this can be edited.
- Select one of three appreciation options to show in the comparison:
- Forecast (based on zip code entered)
- Historical (based on zip code entered)
- Custom
- Click + Add alternate price to add additional purchase prices for comparison. You will need to add a price, property tax in dollars or percent, and the monthly home insurance.
- To add an additional property to compare, click Add new location or property. Repeat steps 3-9.
- Click Next.
Adding New Loan Scenarios
The Loan Comparison tool allows you to add up to five different loan scenarios. Here’s how to create your different loan scenarios:
1. Enter your first loan option by clicking the purple + Add loan button.
2. Click Manual.
3. Next, enter a name for the loan (optional).
4. Enter a Down Payment as a dollar amount or percentage, or select an option from the dropdown table.
5. To add secondary financing, click View second loan terms. The entered amount will reduce cash to close.
6. Choose one of the following Loan Programs:
- Conventional
- FHA
- USDA
- VA
- Interest Only (5 years)
- Interest Only (7 Years)
- Interest Only (10 Years)
- All Cash Investment
- Other
7. Choose one of the following Loan Types:
- Fixed
- ARM (6 month/6 month, 1/1, 3/1, 5/1, 7/1, 9/1, 10/1, 11/1, 15/1)
- Buydown (1/0, 1/1, 2/1, 3/2/1)
8. Based on the selected loan program and type, additional fields may appear. Complete all visible fields to ensure accurate calculations.
9. Enter any Points being used and the dollar amount will automatically populate on the righthand side.
10. Monthly Mortgage Insurance is calculated automatically based on a FICO score of 720-739. You may enter a dollar amount or click Use worksheet to calculate mortgage insurance based on specific modifiers.
11. For Closing Costs, either enter a dollar amount or click Use worksheet to generate a more detailed closing cost estimate. You can save your closing cost worksheets to be used in the future.
12. Finally, enter a dollar amount for the Credits and Prepaid & Escrows fields or use our worksheets.
13. When finished, click Add.
Helpful Tip: Once you’ve created a loan option, use Duplicate to quickly create additional scenarios and edit only the fields you need.
Re-ordering Loan Scenarios
You can quickly re-order how loans are displayed within your Loan Comparison report using the 6-dot grid seen below.
By re-ordering your loans under the Loan Options section, you will see the loans automatically update to your new order under Financial Snapshot and Detailed Comparison.
Financial Snapshot Section
Detailed Comparison Section
Properties or Purchase Price Options for Comparison
You can add alternative prices and additional locations to your loan comparison report to compare different properties or purchase prices for the same location.
To Add an Alternative Purchase Price
1. Click Edit under the location where you’d like to add an alternate price.
2. Click + Add alternate price.
3. Enter the alternate Price.
4. Property Tax and Monthly Home Insurance will automatically populate, but can be edited.
5. Enter a Monthly Association Fee, this is optional.
6. Click Save.
7. Click Update.
To Add an Alternative Location
1. Click on the Locations dropdown.
2. Click + Add.
3. Enter the location's address, city, county, or ZIP code and select it from the dropdown.
4. Enter the property's Price.
5. If the home has appraised for less than the purchase price, click the Add Appraised Value toggle and enter the Appraised Value. The appraised value cannot be higher than the purchase price. The tool will automatically calculate the difference as cash to close and the loan amounts will be based on the appraised value. The Cash Included for Appraisal Gap field is not editable.
6. Property Tax and Monthly Homeowners Insurance will auto-populate, but can be edited if needed.
7. Add a Monthly Association Fee, if applicable.
8. Select an appreciation calculation: Forecast, Historical or Custom.
9. Click Add.
10. Now that you’ve added an alternative location, it will be available to select from a dropdown when creating new loan scenarios.
Adding a Custom Message
1. Click + Add under Custom Message.
2. Enter your custom message.
3. Click Save.
4. Your custom message will appear with your headshot, phone number and email as can be seen below.
Adding Co-branding for Referral Partner
You can also add a referral partner's co-branding on your report. To learn more about co-branding, click here.
1. Click Add under Co-branding.
2. Click on the drop-down menu and select an agent or add a new agent.
3. Choose the orientation for how you want their branding displayed on the report.
4. Click Save.
Generating and Sharing your Report
Click Review report in the top right hand corner to then generate and preview your report. From here, you can share the completed report by clicking Share. A dropdown menu will then appear.
- Click Download to download the report as a PDF.
- Click Send a link via email with an optional video recording (not available for some users depending on their company permission settings).
- Click Host a meeting to virtually meet to discuss the report with your client.
- Click Record a Video to provide your client with a clear walkthrough of the report along with your own insights and context.
To learn more about sharing your report, click here.
Need Help?
Have questions or want to learn more? Submit a ticket or call us today!
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