Homebuyer Seminar Preview

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

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.

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?

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

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!

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

15 MINUTE BREAK!
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.

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)

UNDERWRITING
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

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

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!

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.

Homebuyer Seminar Preview

by Linda Williams on Aug 12, 2008

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Homebuyer Seminar Preview — Presentation Transcript