This document provides answers to common questions for first-time home buyers. It discusses key terms like mortgages and notes, available programs for first-time buyers, the loan application and approval process, and differences between pre-qualification and pre-approval. It also outlines factors that determine credit scores, available loan types and their advantages, and estimated closing costs. Responsibilities during the lending process are noted as well, such as accurately reporting finances and not signing blank documents.

1. TOP 25 QuestionsTOP 25 Questions
about Buying Your First Homeabout Buying Your First Home
Susan Harvey – Loan Officer NMLS # 275224
(813) 523-7565 sharvey@annie-mac.com
CLICK HERE to apply online

2. #1 What is a Mortgage and Note?#1 What is a Mortgage and Note?
 MORTGAGEMORTGAGE == A lienA lien
against the property thatagainst the property that
stays in place until thestays in place until the
mortgage Is paid in full.mortgage Is paid in full.
 NOTENOTE == Your writtenYour written
promise to pay back the loan.promise to pay back the loan.

3. # 2. Are there Special Programs for# 2. Are there Special Programs for
First Time Home Buyers?First Time Home Buyers?
 Yes !Yes !
 There are several Affordable First TimeThere are several Affordable First Time
Home Buyer Options, such as USDAHome Buyer Options, such as USDA
Financing, the Bond Program, FHA Loans,Financing, the Bond Program, FHA Loans,
and My Community.and My Community.

4. # 3. What steps need to be taken to# 3. What steps need to be taken to
secure a loan?secure a loan?
 Complete a loan applicationComplete a loan application
 Documentation neededDocumentation needed ::
 PAYSTUBSPAYSTUBS – covering the most recent 30 day pay period– covering the most recent 30 day pay period
 W-2/1099 FormsW-2/1099 Forms for most recent 3-yearsfor most recent 3-years
 IRS TAX RETURNS-IRS TAX RETURNS- for past 3-years (send all pages/sign & date)for past 3-years (send all pages/sign & date)
 BANK STATEMENTSBANK STATEMENTS - covering most recent 3-months activity- covering most recent 3-months activity
 Other Information requiredOther Information required::
 12-Month Rental History / Name & Contact Info for Landlord12-Month Rental History / Name & Contact Info for Landlord
 Amount of Total Household IncomeAmount of Total Household Income
 Amount of Total Assets for HouseholdAmount of Total Assets for Household

5. # 4. What’s the Difference between# 4. What’s the Difference between
Pre-Qualified and Pre-Approved ?Pre-Qualified and Pre-Approved ?
 Pre-QualifiedPre-Qualified
 May be done over the Phone / No Obligation / No CostMay be done over the Phone / No Obligation / No Cost
 No Paperwork Required - “Ball-park Guesstimate”No Paperwork Required - “Ball-park Guesstimate”
 Value = WorthlessValue = Worthless
 Pre-ApprovedPre-Approved
 May be done over Phone / No Obligation / No CostMay be done over Phone / No Obligation / No Cost
 Income & Asset Documentation Required - Actual NumbersIncome & Asset Documentation Required - Actual Numbers
 Value = PricelessValue = Priceless

6. # 5. WHAT DETERMINES YOUR# 5. WHAT DETERMINES YOUR
CREDIT SCORECREDIT SCORE

7. # 6.# 6. HOW CAN I FIND OUTHOW CAN I FIND OUT
INFORMATION ABOUT MY CREDITINFORMATION ABOUT MY CREDIT
HISTORY?HISTORY?
 EquifaxEquifax
 ExperianExperian
 TransunionTransunion
 Call me for a copy of your ReportCall me for a copy of your Report

8. # 7. HOW DO I CHOOSE THE BEST# 7. HOW DO I CHOOSE THE BEST
LOAN - PROGRAM FOR ME?LOAN - PROGRAM FOR ME?
 Ask Yourself these questionsAsk Yourself these questions
 How long do you plan to live in this home?How long do you plan to live in this home?
 Do you expect your income to increase over the next fewDo you expect your income to increase over the next few
years?years?
 Which is more important to you – paying off your home asWhich is more important to you – paying off your home as
quickly as possible or having the lowest paymentquickly as possible or having the lowest payment
possible?possible?
 What are your dreams and goals for the future?What are your dreams and goals for the future?
 Do you wish to be free of mortgage debt as your childrenDo you wish to be free of mortgage debt as your children
approach college age or as you prepare for retirement?approach college age or as you prepare for retirement?


9. # 8. WHAT TYPES OF LOANS ARE# 8. WHAT TYPES OF LOANS ARE
AVAILABLE AND WHAT ARE THEAVAILABLE AND WHAT ARE THE
ADVANTAGES OF EACH?ADVANTAGES OF EACH?
 Fixed Rate MortgageFixed Rate Mortgage
 PredictablePredictable
 Rate and payment stay the same for term of loanRate and payment stay the same for term of loan
 Typically 15 or 30 yearTypically 15 or 30 year
 Hybrid ARM (Adjustable Rate Mortgage)Hybrid ARM (Adjustable Rate Mortgage)
 Payment is “fixed” for the initial period, then increases or decreasesPayment is “fixed” for the initial period, then increases or decreases
on a regular schedule with interest rate change and life-of-loanon a regular schedule with interest rate change and life-of-loan
caps.caps.
 ““Fixed” periods range from 5 Year / 7 Year/ 10 Year. Interest RatesFixed” periods range from 5 Year / 7 Year/ 10 Year. Interest Rates
are typically lower than Fixed Mortgage Rates.are typically lower than Fixed Mortgage Rates.
 Interest-Only Payments-Interest-Only Payments- available only on certain ARM’Savailable only on certain ARM’S

10. # 9. WHEN DO ARMS MAKE SENSE?# 9. WHEN DO ARMS MAKE SENSE?
 Expect Increase in IncomeExpect Increase in Income
 Short term PurchaseShort term Purchase

11. # 10. DEFINITIONS AND# 10. DEFINITIONS AND
NADVANTAGES OF 15- AND 30-YEARNADVANTAGES OF 15- AND 30-YEAR
LOAN TERMS?LOAN TERMS?
 Principle –Principle – The original amount of money that was borrowed.The original amount of money that was borrowed.
 Interest –Interest – The amount the lender charges you for borrowing theThe amount the lender charges you for borrowing the
moneymoney
 30-Year30-Year::
Larger tax deductions.Larger tax deductions.
 15-Year15-Year::
 Loan is usually made at a lower interest rate. Equity is built fasterLoan is usually made at a lower interest rate. Equity is built faster
because early payments pay more principal.because early payments pay more principal.

12. # 11. WHAT HAPPENS IF INTEREST# 11. WHAT HAPPENS IF INTEREST
RATES DECREASE AND I HAVE A FIXEDRATES DECREASE AND I HAVE A FIXED
RATE LOAN?RATE LOAN?
 Investigate Refinance OptionsInvestigate Refinance Options

13. # 12. WHAT ARE DISCOUNT POINTS?# 12. WHAT ARE DISCOUNT POINTS?
 1 Point = 1% of your Loan Amount1 Point = 1% of your Loan Amount
 Paying Points allows you to get a LowerPaying Points allows you to get a Lower
Interest RateInterest Rate
 Financial Planners recommend to payFinancial Planners recommend to pay
points if you plan to stay in home longpoints if you plan to stay in home long
termterm
 Points Tax Deductible on a HomePoints Tax Deductible on a Home
PurchasePurchase

14. # 13. WHAT IS INCLUDED IN A# 13. WHAT IS INCLUDED IN A
MONTHLY MORTGAGE PAYMENT?MONTHLY MORTGAGE PAYMENT?
 PrincipalPrincipal
 InterestInterest
 Real Estate TaxesReal Estate Taxes
 Home Owners InsuranceHome Owners Insurance
 Mortgage InsuranceMortgage Insurance
 Homeowners Association Fees are NotHomeowners Association Fees are Not
Escrowed, however, they are your responsibilityEscrowed, however, they are your responsibility
to payto pay

15. # 14. WHAT IS AN ESCROW ACCOUNT?# 14. WHAT IS AN ESCROW ACCOUNT?
DO I NEED ONE?DO I NEED ONE?
 Established by your Lender to Pay for yourEstablished by your Lender to Pay for your
Taxes and Insurance from your monthlyTaxes and Insurance from your monthly
mortgage paymentmortgage payment
 May be optional if your Down Payment amountMay be optional if your Down Payment amount
is 20% or more of the Sales Price (check withis 20% or more of the Sales Price (check with
lender)lender)

16. # 15. HOW MUCH MONEY WILL I NEED# 15. HOW MUCH MONEY WILL I NEED
AT CLOSING?AT CLOSING?
 You will need sufficient money to cover:You will need sufficient money to cover:
 Down Payment of 3 .5% (-0- on USDA &Down Payment of 3 .5% (-0- on USDA &
VA loans)VA loans)
 Closing Costs (including Escrows)Closing Costs (including Escrows)
 First Year’s Premium for Home OwnersFirst Year’s Premium for Home Owners
InsuranceInsurance
 InspectionsInspections

17. # 16.WHAT IS “ LOAN TO VALUE” (LTV) ?# 16.WHAT IS “ LOAN TO VALUE” (LTV) ?
Amount of Money you borrowerAmount of Money you borrower
compared with Purchase Price orcompared with Purchase Price or
Appraiser ValueAppraiser Value

18. # 17.# 17. WHAT MAKES UP CLOSING COST?WHAT MAKES UP CLOSING COST?
 Attorney's or escrow feesAttorney's or escrow fees
 Property taxes (to cover tax period to date) Property taxes (to cover tax period to date)
 Interest (paid from date of closing to 30 days before first monthly payment) Interest (paid from date of closing to 30 days before first monthly payment)
 Loan Origination fee (covers lenders administrative cost) Loan Origination fee (covers lenders administrative cost)
 Recording fees Recording fees
 Survey feeSurvey fee
 First premium of mortgage Insurance (if applicable) First premium of mortgage Insurance (if applicable)
 Title Insurance (yours and lender's) Title Insurance (yours and lender's)
 Loan discount points Loan discount points
 First 2-3 payments to escrow account for future real estate taxes andFirst 2-3 payments to escrow account for future real estate taxes and
insurance insurance
 Paid receipt for homeowner's insurance policy (and fire and flood insurance ifPaid receipt for homeowner's insurance policy (and fire and flood insurance if
applicable) applicable)
 Any documentation preparation feesAny documentation preparation fees
 Third Party Appraisal FeeThird Party Appraisal Fee

19. #18. WHAT RESPONSIBILITIES DO I#18. WHAT RESPONSIBILITIES DO I
HAVE DURING THE LENDINGHAVE DURING THE LENDING
PROCESS?PROCESS? Be sure to read and understand everything before you sign. Be sure to read and understand everything before you sign.
 Refuse to sign any blank documents. Refuse to sign any blank documents.
 Do not buy property for someone else. Do not buy property for someone else.
 Do not overstate your income. Do not overstate your income.
 Do not overstate how long you have been employed. Do not overstate how long you have been employed.
 Do not overstate your assets. Do not overstate your assets.
 Accurately report your debts. Accurately report your debts.
 Do not change your income tax returns for any reason.Do not change your income tax returns for any reason.
 Tell the whole truth about gifts.Tell the whole truth about gifts.
 Do not list fake co-borrowers on your loan application.Do not list fake co-borrowers on your loan application.
 Be truthful about your credit problems, past and present. Be truthful about your credit problems, past and present.
 Be honest about your intention to occupy the house Be honest about your intention to occupy the house
 Do not provide false supporting documents.Do not provide false supporting documents.
 Provide requested documentation quicklyProvide requested documentation quickly
 Do not move money around your accountsDo not move money around your accounts
 Do not have any credit inquiries or make any new purchasesDo not have any credit inquiries or make any new purchases

20. # 19. WHAT IS RESPA?# 19. WHAT IS RESPA?
 Real Estate Settlement Procedures ActReal Estate Settlement Procedures Act
 Protects you the borrower from Lending AbusesProtects you the borrower from Lending Abuses
 All costs associated with the loan must be fullyAll costs associated with the loan must be fully
disclosed to you.disclosed to you.
 HUD Phone Number 800-669-9777HUD Phone Number 800-669-9777

21. # 20. WHAT HAPPENS AFTER I'VE# 20. WHAT HAPPENS AFTER I'VE
APPLIED FOR MY LOAN?APPLIED FOR MY LOAN?
 Closing typically occurs between 4-6 weeksClosing typically occurs between 4-6 weeks
 Lock Interest RateLock Interest Rate
 Respond immediately toRespond immediately to
lender requestslender requests
 Once loan receivesOnce loan receives
final approval you mayfinal approval you may
schedule a Closing Dateschedule a Closing Date

22. # 21. WHAT SHOULD I LOOK OUT FOR# 21. WHAT SHOULD I LOOK OUT FOR
DURING THE FINAL WALK-THROUGH?DURING THE FINAL WALK-THROUGH?
 Examine every corner of the empty houseExamine every corner of the empty house
 Check Floor to CeilingCheck Floor to Ceiling
 Be sure Seller fixed any problems promisedBe sure Seller fixed any problems promised
 Make sure everything is acceptable to youMake sure everything is acceptable to you
BeforeBefore you closeyou close

23. # 22. WHAT CAN I EXPECT TO HAPPEN# 22. WHAT CAN I EXPECT TO HAPPEN
IMMEDIATELY PRIOR TO CLOSING ?IMMEDIATELY PRIOR TO CLOSING ?
 Arrange to either Pay for your Home OwnersArrange to either Pay for your Home Owners
Insurance Policy (and send Payment Receipt to Lender)Insurance Policy (and send Payment Receipt to Lender)
OR have your Insurance Agent send a copy of theOR have your Insurance Agent send a copy of the
Policy and an Invoice for Payment to your LenderPolicy and an Invoice for Payment to your Lender
 Contact your Lender or Realtor to Obtain WiringContact your Lender or Realtor to Obtain Wiring
Instructions for Title Company/Closing Agent. AllInstructions for Title Company/Closing Agent. All
funds needed from you at closing now must be Wiredfunds needed from you at closing now must be Wired
(No Cashiers Checks allowed!)(No Cashiers Checks allowed!)
 Review your Final HUD-1 Settlement Statement PriorReview your Final HUD-1 Settlement Statement Prior
to Loan Closingto Loan Closing
 Ask your Realtor when you can expect to receive theAsk your Realtor when you can expect to receive the
keys to your new homekeys to your new home

24. # 23. CAN I PAY OFF MY LOAN AHEAD# 23. CAN I PAY OFF MY LOAN AHEAD
OF SCHEDULE?OF SCHEDULE?
 YesYes
 There are No Pre-Payment Penalties on ourThere are No Pre-Payment Penalties on our
loans.loans.

25. CONGRATULATIONS! You are now aCONGRATULATIONS! You are now a
Homeowner!Homeowner!

26. Susan Harvey - Loan OfficerSusan Harvey - Loan Officer
NMLS# 275224NMLS# 275224
(813) 523-7565(813) 523-7565
sharvey@annie-mac.com
Apply online (24/7)Apply online (24/7)
https://susanharvey.annie-mac.comhttps://susanharvey.annie-mac.com