1. The Top 20 Questions
About First Time Home
Buyer Mortgages
Debby Stark
Senior Mortgage Banker
NMLS # 747663
T: (217) 209-0512
C: (217) 430-3884
2. # 1 What is a Mortgage?
►A Loan/Lien on a Property
►The Promise to Pay
3. # 2 Are There Special Mortgages For
First-Time Homebuyers?
Many to
Choose From!
No Fico
FHA
Construction
VA
203(k)
4. # 3 What Steps Need To Be Taken To
Secure a Loan?
Complete a Loan Application
Provide the Following Documentation-
YTD Pay Stubs for the past 2-3 months
W-2 forms for the past 2 years (Tax Returns if self employed)
Information on long-term debts
Recent Bank Statements (Checkings, Savings, 401(k), Etc)
Tax Returns for the past 2 years
Proof of any other income
Address and Description of the property you wish to Purchase
Sales Contract
12 month Rental History
5. # 4 How are a Pre-Qualification and
a Pre-Approval Different?
Pre-Qualification – Is informal and can be done over the phone
► No Obligation
► No Paperwork
► Ball Park Figure
Pre-Approval
A formal commitment to lend
► Lender collects items listed
in “How to Secure a Loan”
Slide
► Definite idea of what you
can afford
6. #5 What Is a Credit Score and How
Do Lenders Use Them?
7. # 6 How Can I Find Out Information
About My Credit Report?
You Will Receive a Copy with Your Application!
www.AnnualCreditReport.com
8. # 7 How Do I Choose The Best Loan
Program For Me?
Ask These Questions-
►How do you expect your finances to change over
the next few years?
►Are you planning to live in this home for a long
period of time?
►Are you comfortable with the idea of a changing
mortgage payment amount?
►When do you want to be “Mortgage Debt-Free”?
9. # 8 What Types of Loans Are Out There
and What Advantages Do They Have?
We’re
Experts in
Many
Programs!
FHA
Fixed Rate
203(k)
As one of the most
popular, FHA loans
are the most flexible
Do you want to know
EXACTLY how much
you pay every month?
Have your eyes set
on the “Fixer Upper”?
10. # 9 What Is “Locking In” a Rate?
►Guarantees Your Loans Interest Rate
►Interest Rates Fluctuate Everyday
►Should I Wait To Lock?
11. # 10 What Are Discount Points?
►Allows you to lower your interest
rate by paying extra
►Recommended if you plan to stay in
your home for awhile
►Tax Deductible on Home Purchase
12. #11 What is Included In Your Monthly
Mortgage Payment? Principal
Interest
Real
Estate
Taxes
Home-Owners
Insurance
Mortgage
Insurance
13. # 12 Can I Use Gift Money?
Yes! The Donor
The Gift
Letter
The Transfer
14. # 13 What is LTV and How Does it
Determine the Size of My Loan?
Loan-To-Value
The amount of money you borrow compared to
the purchase price
Loan-To-Value =
Mortgage Amount
Appraised Value of
the Property
15. # 14 What Is Private Mortgage
Insurance?
►Down-Payment Less Than 20%
►Provides ‘Default’
Insurance to the
Lender
►When Does It End?
16. # 15 What Makes Up Closing Costs?
►Attorney's or escrow fees
► Property taxes (to cover tax period to date)
►Interest (paid from date of closing to 30 days before first monthly payment)
►Loan Origination fee (covers lenders administrative cost)
►Recording fees
►Survey fee
► First premium of mortgage Insurance (if applicable)
►Title Insurance (yours and lender's)
►Loan discount points
►First 2-3 payments to escrow account for future real estate taxes and
insurance
►Paid receipt for homeowner's insurance policy (and fire and flood insurance if
applicable)
►Any documentation preparation fees
►Third Party Appraisal Fee
17. # 16 What Is an Escrow Account?
►Breaks Up Annual Tax and Insurance Costs into
monthly costs
►Prevents Tax Liens, Loss of Property and any lapse of
insurance coverage
►Two Month Minimum Balance
18. # 17 What Happens After I’ve Applied
For a Loan?
►How the loan process works-
► Loan Application
► Purchase Offer
► Acceptance
► Inspections
► Contract
► Approval
► Closing/Funding
► Moving In!
Provide requested documentation in a timely manner
19. # 18 What Responsibilities Do I Have
During The Lending Process?
I. You should not change jobs, become self-employed, or quit your
job.
II. You should not buy a vehicle or boat.
III. You should not use charge cards excessively or let your
accounts fall behind.
IV. You should not spend money you have set aside for closing.
V. You should not omit debts or liabilities from you loan
application.
VI. You should not buy furniture.
VII. You should not originate any inquiries into your credit.
VIII. You should not make any deposits or transfer money into your
checking and/or savings accounts without first checking with
your Mortgage Advisor.
IX. You should not change back accounts.
X. You should not co-sign a loan for anyone.
20. # 19 What Should I Look Out For
During The Final Walk-Through?
►Examine every corner of the
empty house
►Check Floor to Ceiling
►Be sure Seller fixed any
problems promised
►Make sure everything is
perfect Before you close
21. # 20 What Can I Expect To Happen
On Closing Day?
►Bring your Paid Home owners insurance
►Bring a Cashiers Check for money you owe for down-
payment and closing costs
►You will get proof of inspections and/or warranties
►Sign on the dotted line
►Mortgage Note
►Binding Sales Contract
►Keys to your new home
23. Thanks For Joining Me Today!
Call Me and Let’s Get Started!
Welcome To World Class Service!
LeaderOne Financial Corporation is an Illinois Residential Mortgage Licensee, MB
6760699. Corporate Headquarters: 11020 King Street, Suite 390; Overland Park, KS
66210, NMLS ID #12007 http://www.nmlsconsumeraccess.org
This advertisement does not constitute a loan approval or a loan commitment. Loan
approval and/or loan commitment is subject to final underwriting review and approval.
Debby Stark
NMLS# 747663
Senior Mortgage Banker
725 Hampshire St
Quincy, IL 62301
T: (217) 209-0512
C: (217) 430-3884
DebraStark@Leader1.com
