HOMEBUYER KNOWLEDGE IS POWER SEMINAR PRESENTED BY _YOUR NAME HERE_ Equal Housing Opportunity © Silver State Trainers Inc 2007

HOMEBUYER

KNOWLEDGE IS POWER

SEMINAR

PRESENTED BY

_YOUR NAME HERE_

Equal Housing Opportunity © Silver State Trainers Inc 2007

OVERVIEW The Mortgage Cycle New vs. Resale Properties Pre-qualification Making Application Loan Programs Your Credit Score Loan Processing Underwriting Closing and Funding Questions & Answers

The Mortgage Cycle

New vs. Resale Properties

Pre-qualification

Making Application

Loan Programs

Your Credit Score

Loan Processing

Underwriting

Closing and Funding

Questions & Answers

PREQUALIFICATION Obtaining a Prequalification Letter before making an offer on a property lets the seller know you’re ready to close. After this presentation we will have our staff available for your private questions or to discuss your homeownership goals. You are also welcome to take a card to call with questions or for an appointment. Prequalification is risk free no money is required no obligation to complete the transaction All your information is kept confidential.

Obtaining a Prequalification Letter before making an offer on a property lets the seller know you’re ready to close.

After this presentation we will have our staff available for your private questions or to discuss your homeownership goals.

You are also welcome to take a card to call with questions or for an appointment.

Prequalification is risk free

no money is required

no obligation to complete the transaction

All your information is kept confidential.

QUALIFICATION Qualification means a mortgage professional will review your three ‘C’s of lending Capacity Do you have sufficient funds to close the loan? Do you have sufficient income to support the loan? Is your income stable and continuous? Character How do you handle your creditors? Collateral Does the property meet the program requirements?

Qualification means a mortgage professional will review your three ‘C’s of lending

Capacity

Do you have sufficient funds to close the loan?

Do you have sufficient income to support the loan?

Is your income stable and continuous?

Character

How do you handle your creditors?

Collateral

Does the property meet the program requirements?

APPLICATION PROCESS After initial pre-qualification Loan originator reviews the different loan programs based on borrower needs and situation. The full mortgage application is taken Application summarizes your assets and liabilities for an underwriter to evaluate Supporting documentation is given to the loan originator All loan application information is verified

After initial pre-qualification

Loan originator reviews the different loan programs based on borrower needs and situation.

The full mortgage application is taken

Application summarizes your assets and liabilities for an underwriter to evaluate

Supporting documentation is given to the loan originator

All loan application information is verified

CHOOSING THE RIGHT LOAN PROGRAM The Loan Originator will: Review all the loan programs available – there are many Ensure you are getting the best choice of loan products Meet your home ownership goals And make it all seem easy!

The Loan Originator will:

Review all the loan programs available – there are many

Ensure you are getting the best choice of loan products

Meet your home ownership goals

And make it all seem easy!

APPLICATION PROCESS Borrower supplies: at least 3 months bank statements Social security card Photo ID/Green card Addresses for last 24 mos. residency 24 mos. employment information Most recent two years complete tax returns If self employed, Profit & Loss statement W-2’s for last two years Pay stubs for most current month Any other income supporting documentation requested

Borrower supplies:

at least 3 months bank statements

Social security card

Photo ID/Green card

Addresses for last 24 mos. residency

24 mos. employment information

Most recent two years complete tax returns

If self employed, Profit & Loss statement

W-2’s for last two years

Pay stubs for most current month

Any other income supporting documentation requested

15 MINUTE BREAK! Hurry back!

Hurry back!

Derogatory credit Derogatory credit alone is not a reason for loan denial The type of derogatory credit, time since delinquency, amount of delinquency, and the reason for delinquency are all considered. If for some reason you are not able to meet the loan requirements, the mortgage professional will inform you what it may take for you to meet these requirements in the future. You should find out where you stand in the lender’s eyes.

Derogatory credit alone is not a reason for loan denial

The type of derogatory credit,

time since delinquency,

amount of delinquency,

and the reason for delinquency are all considered.

If for some reason you are not able to meet the loan requirements, the mortgage professional will inform you what it may take for you to meet these requirements in the future.

You should find out where you stand in the lender’s eyes.

YOUR CREDIT IN TROUBLE NOW OR IN THE FUTURE  Forbearance by lender possible  Consumer Credit Counseling Services – Non profit  Debt Negotiation companies  Bankruptcy (Different types)

IN TROUBLE NOW OR

IN THE FUTURE

 Forbearance by lender possible

 Consumer Credit Counseling Services – Non profit

 Debt Negotiation companies

 Bankruptcy (Different types)

UNDERWRITING Underwriting is the decision-making stage in mortgage cycle 3 “c”s – critical areas analyzed: - Capacity - Character - Collateral

Underwriting is the decision-making stage in mortgage cycle

3 “c”s – critical areas analyzed:

- Capacity

- Character

- Collateral

CLOSING AND FUNDING: HUD-1 Settlement Statement Itemized closing statement showing your (buyer) costs on left side Initially you will receive preliminary HUD-1 which puts all costs down but is not generally the final numbers Compare costs on HUD-1 with Good Faith Estimates – should be similar Final HUD-1 will be prepared when loan is funding Some costs may be tax deductable

Itemized closing statement showing your (buyer) costs on left side

Initially you will receive preliminary HUD-1 which puts all costs down but is not generally the final numbers

Compare costs on HUD-1 with Good Faith Estimates – should be similar

Final HUD-1 will be prepared when loan is funding

Some costs may be tax deductable

CLOSING AND FUNDING Receiving keys – not until after your legal documents record and funds from lender are disbursed Your real estate agent will handle getting the keys to the house for you

Receiving keys – not until after your legal documents record and funds from lender are disbursed

Your real estate agent will handle getting the keys to the house for you

QUESTIONS & ANSWER TIME There is no such thing as a stupid question Our mortgage professionals are here to help you Private consultations are available JUST ASK!

There is no such thing as a stupid question

Our mortgage professionals are here to help you

Private consultations are available

JUST ASK!

THANK YOU FOR ATTENDING! We appreciate your attending our session. If you’d like a private appointment to discuss your situation, please approach one of our loan originators now or pick up a business card to make an appointment later. Remember, we are here to assist you in meeting your home financing needs. Please complete the survey at the end of your workbook, and leave it where you are sitting. We appreciate your input.

We appreciate your attending our session.

If you’d like a private appointment to discuss your situation, please approach one of our loan originators now or pick up a business card to make an appointment later.

Remember, we are here to assist you in meeting your home financing needs.

Please complete the survey at the end of your workbook, and leave it where you are sitting.

We appreciate your input.