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  • MTG TRAINERS OF NORTH AMERICA HOMEBUYER KNOWLEDGE IS POWER SEMINAR The moderator should introduce all the attending employees of the company and special guests before advancing the slide. Thank the people for coming. Next it is recommended the audience be polled to determine their level of familiarity with the materials. Ask how many people have owned a home within the last three years. Ask how many currently own their own home. Ask how many participants plan to purchase a home within the next 3 months, 6 months, or a year. After poll, go to next slide
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    1. 1. <ul><li>HOMEBUYER </li></ul><ul><li>KNOWLEDGE IS POWER </li></ul><ul><li>SEMINAR </li></ul><ul><li>SPONSORED BY </li></ul><ul><li>____ YOUR COMPANY NAME HERE ___ </li></ul><ul><li>  </li></ul><ul><li>Equal Housing Opportunity © Silver State Trainers Inc 2007 </li></ul>
    2. 2. PREQUALIFICATION <ul><li>As a service for you, after this presentation we will have loan originators available for you to discuss your homeownership goals. </li></ul><ul><li>You may also set an appointment to review your credit and start the prequalification process in private. </li></ul><ul><li>Prequalification is risk free </li></ul><ul><ul><li>no money is required </li></ul></ul><ul><ul><li>no obligation to complete the transaction </li></ul></ul>
    3. 3. PREQUALIFICATION <ul><li>All our mortgage loan originators are professionals and will keep all your information confidential. </li></ul><ul><li>We will try to answer all your questions. </li></ul><ul><li>We are here to serve your home buying goals. </li></ul>
    4. 4. QUALIFICATION <ul><li>Qualification means a mortgage professional will review your three ‘C’s of lending </li></ul><ul><li>Capacity </li></ul><ul><ul><li>Do you have sufficient funds to close the loan? </li></ul></ul><ul><ul><li>Do you have sufficient income to support the loan? </li></ul></ul><ul><li>Character </li></ul><ul><ul><li>How do you handle your creditors? </li></ul></ul><ul><li>Collateral </li></ul><ul><ul><li>Does the property meet the program requirements? </li></ul></ul>
    5. 5. DOES BAD CREDIT = NO LOAN? <ul><li>NOT TRUE! </li></ul><ul><li>With the current mortgage industry there are many loan programs available to meet all types of borrower’s situations. </li></ul><ul><li>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. </li></ul><ul><li>You should find out where you stand in the lender’s eyes. </li></ul>
    6. 6. QUESTIONS & ANSWER TIME <ul><li>There is no such thing as a stupid question </li></ul><ul><li>Our mortgage professionals are here to help you </li></ul><ul><li>Private consultations are available </li></ul><ul><li>JUST ASK! </li></ul>
    7. 7. APPLICATION PROCESS <ul><li>Loan originator interviews the borrower and completes loan application. </li></ul><ul><li>Loan disclosures are signed </li></ul><ul><li>Loan originator gives the borrower a complete Good Faith Estimate (GFE) </li></ul><ul><li>Borrower supplies: </li></ul><ul><ul><li>at least 3 months bank statements </li></ul></ul><ul><ul><li>Social security card </li></ul></ul><ul><ul><li>Photo ID/Green card </li></ul></ul><ul><ul><li>Addresses for last 24 months </li></ul></ul>
    8. 8. LOAN PROGRAMS <ul><li>Loan originator will review your mortgage program options </li></ul><ul><li>Some will allow you to have little or no income documentation </li></ul><ul><li>Some allow not so perfect credit; charge offs and collections not required to be paid off </li></ul>
    9. 9. LOAN PROGRAMS <ul><li>Terminology can be confusing </li></ul><ul><li>“ What are my closing costs?” Does not mean </li></ul><ul><li>“ What is the total amount of funds needed to close on the house?” </li></ul><ul><li>There are closing costs and prepaids disclosed on GFE, down payment, and maybe reserves required. </li></ul><ul><li>Most lenders require you escrow for real estate taxes and insurance – these are called pre-paids. </li></ul>
    10. 10. YOUR CREDIT <ul><li>Loan originator will review a </li></ul><ul><li>Tri-merge credit report </li></ul><ul><li>You may obtain credit report direct from credit reporting agency </li></ul><ul><li>New FACTA requires the bureaus to give the consumer one free credit report a year (credit score costs) </li></ul><ul><li> </li></ul><ul><li>Three main bureaus </li></ul><ul><li>Transunion </li></ul><ul><li>Equifax </li></ul><ul><li>Experian </li></ul>
    11. 11. CREDIT SCORES <ul><li>Caution – Inquiries lower your credit score! </li></ul><ul><li>Shopping mortgage lenders or loan originators can lower your score </li></ul><ul><li>Shopping for any type of credit will lower score </li></ul><ul><li>Try not to use your credit while in home buying process </li></ul>
    12. 12. TYPES OF CREDIT <ul><li>No credit activity may cause no credit scores to generate </li></ul><ul><li>Alternative credit – letters of credit </li></ul><ul><li>Trade lines from creditors need to be reported to credit bureau </li></ul><ul><li>Fannie Mae requires 4-5 trade lines open 12 –24 months </li></ul>
    13. 13. QUESTIONS & ANSWER TIME <ul><li>There is no such thing as a stupid question </li></ul><ul><li>Our mortgage professionals are here to help you </li></ul><ul><li>Private consultations are available </li></ul><ul><li>JUST ASK! </li></ul>
    14. 14. CHOOSING THE RIGHT LOAN PROGRAM <ul><li>The Loan Originator will: </li></ul><ul><li>Review all the loan programs available – there are many </li></ul><ul><li>Ensure you are getting the best choice of loan products </li></ul><ul><li>Meet your home ownership goals </li></ul><ul><li>And make it all seem easy! </li></ul>
    15. 15. LOAN PROCESSING <ul><li>Processing is a procedure that verifies and gathers all documentation necessary for the underwriter’s review </li></ul><ul><li>Processor will verify and update the initial application and organize the supporting documentation supplied by the borrower. </li></ul>
    16. 16. UNDERWRITING <ul><li>Underwriting is the decision-making stage in mortgage cycle </li></ul><ul><li>3 “c”s – critical areas analyzed: </li></ul><ul><li>- Capacity </li></ul><ul><li>- Character </li></ul><ul><li>- Collateral </li></ul>
    17. 17. CLOSING AND FUNDING <ul><li>What questions can be asked at closing? </li></ul><ul><li>Not many – Escrow officers can help you with questions about when is the first loan payment, your property’s title Issues, payment period for Real estate taxes, and best ways to hold title to property </li></ul>
    18. 18. CLOSING AND FUNDING <ul><li>Your loan originator should have explained what type of loan program you’re getting, how the loan program works, monthly payment, interest rate, pre-payment penalties, mortgage insurance, etc. </li></ul>
    19. 19. QUESTIONS & ANSWER TIME <ul><li>There is no such thing as a stupid question </li></ul><ul><li>Our mortgage professionals are here to help you </li></ul><ul><li>Private consultations are available </li></ul><ul><li>JUST ASK! </li></ul>