Providing Financing and Marketing Capabilities For Real Estate Agents to Gain Exposure and Help Increase Sales

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The Listing Edge
program
Gain greater exposure
Eric Hamilton
Home Mortgage Consultant
NMLSR ID: 414113

2. It’s competitive out there
At Wells Fargo Home Mortgage, we understand the
challenges you face in today’s market:
 A market saturated with listings
 Inventory takes longer to sell
 Challenges to stand out in a very competitive market
 Home financing challenges that can eliminate potential
buyers
 Frustrated sellers – disappointed when contract price is
lower than asking price, and when property sits on market
for months rather than weeks
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3. Set yourself apart even more
The Listing Edge® program
The Wells Fargo Listing Edge® program provides
financing and unique marketing capabilities designed
to give you the edge to:
 Differentiate your listings in the marketplace
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4. The Listing Edge® arsenal
 Special financing options
 Marketing
 Financing flyers
 Co-branded listing invitations
 Yard signs
 Reference in the MLS that special financing is available
 Other promotional tools
 Single Source® financing options
 PriorityBuyer® preapproval
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5. NOTE to HMCs: slides 5-8 cover temporary buydowns and slides 9-13 cover 203(K) Streamline financing. Choose one
or the other for your deck before printing or saving to your desktop. Be sure to delete all notes prior to making this presentation.
Special financing to increase your buyer pool
Introducing Temporary Payment Buydowns
Provide a powerful incentive – our temporary payment
buydown option. It can lower the initial monthly
payment, making the home listing more attractive.
This helps you to:
 Save your sellers and buyers money
 Differentiate yourself from the competition
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6. NOTE to HMCs: slides 5-8 cover temporary buydowns and slides 9-13 cover 203(K) Streamline financing. Choose one
or the other for your deck before printing or saving to your desktop. Be sure to delete all notes prior to making this presentation.
Temporary Buydowns
Attract more buyers with lower initial payments
This temporary 30-year Fixed Rate with a 2/1 Temporary Buydown
payment
Loan amount
buydown can with 20%
Year 1 Year 2 Year 3
help homebuyers down
payment
start off with Interest Rate: 3.875% Interest Rate: 3.875% Interest Rate: 3.875%
$300,000
lower payments APR: 3.824% APR: 3.824% APR: 3.824%
Note Monthly Payment: $1410.72 Note Monthly Payment: $1410.72 Note Monthly Payment: $1410.72
and know what Payment Reduction:$320.52 Payment Reduction:$166.04 Payment Reduction:$0
their future Net Monthly Payment: $1090.20 Net Monthly Payment: $1244.68 Net Monthly Payment: $1410.72
payments will be.
$500,000 Interest Rate: 3.875% Interest Rate: 3.875% Interest Rate: 3.875%
APR: 3.819% APR: 3.819% APR: 3.819%
Note Monthly Payment: $2351.19 Note Monthly Payment: $2351.19 Note Monthly Payment: $2351.19
Payment Reduction:$534.19 Payment Reduction:$276.73 Payment Reduction:$0
Net Monthly Payment: $1817.00 Net Monthly Payment: $2074.46 Net Monthly Payment: $2351.19
$1,000,000 Interest Rate: 4.125% Interest Rate: 4.125% Interest Rate: 4.125%
APR: 4.035% APR: 4.035% APR: 4.035%
Note Monthly Payment: $4846.50 Note Monthly Payment: $4846.50 Note Monthly Payment: $4846.50
Payment Reduction: $1212.50 Payment Reduction:$697.58 Payment Reduction:$0
Net Monthly Payment: $3634.00 Net Monthly Payment: $4148.92 Net Monthly Payment: $4846.50
Wells Fargo Home Mortgage has multiple buydown variations. These are
illustration interest rates. Contact us for current interest rates.
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7. NOTE to HMCs: slides 5-8 cover temporary buydowns and slides 9-13 cover 203(K) Streamline financing. Choose one
or the other for your deck before printing or saving to your desktop. Be sure to delete all notes prior to making this presentation.
Temporary Buydowns
A win-win for everyone
This illustration shows Seller Advantage Reduced Sales Price vs 2/1 Buydown
how lowering the sales Original Price $300,000 $300,000
price immediately costs Listed Price $290,000 $300,000
the seller $10,000. Loan Amount (80% LTV) $232,000 $240,000
Cost to Seller $10,000 $4670.88
The 2/1 temporary payment reduction costs the builder/seller $5329.12 less than reducing the sales price.
But with a 2/1 buydown,
the seller concessions Buyer’s Advantage Reduced Sales Price 2/1 Buydown
are only $4,670.88 and Loan Amount $232,000 Loan Amount $240,000
the buyer’s monthly Year 1 Interest rate/APR 3.875%/3.985% 3.875%/3.829%
payments are reduced Note Monthly P&I $1090.96 $1128.57
by $256.41 for the first Monthly Payment Reduction $0 $256.41
year. Net Monthly Payment $1090.96 $872.16
Year 2 Interest rate/APR 3.875%/3.985% 3.875%/3.829%
Note Monthly P&I $1090.96 $1128.57
By providing temporary Monthly Payment Reduction $0 $132.83
buydowns, everyone Net Monthly Payment $1090.96 $995.74
wins! Years 3-30 Interest rate/APR 3.875%/3.985% 3.875%/3.829%
Note Monthly P&I $1090.96 $1128.57
Monthly Payment Reduction $0 $0
Net Monthly Payment $1090.96 $1128.57
Wells Fargo Home Mortgage has multiple buydown variations.
These are illustration interest rates. Contact us for current interest rates.
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8. NOTE to HMCs: slides 5-8 cover temporary buydowns and slides 9-13 cover 203(K) Streamline financing. Choose one
or the other for your deck before printing or saving to your desktop. Be sure to delete all notes prior to making this presentation.
Entice more buyers
Leverage Wells Fargo Home Mortgage financing flyers
 Highlight how a temporary payment buydown can work to
a homebuyer’s advantage.
 Display during Open Houses. Attach to your listing flyers.
Share at broker previews.
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9. NOTE to HMCs: slides 5-8 cover temporary buydowns and slides 9-13 cover 203(K) Streamline financing. Choose one
or the other for your deck before printing or saving to your desktop. Be sure to delete all notes prior to making this presentation.
203(K) Streamline financing
What is it?
 The Streamline 203(K) program permits homebuyers to finance
up to an additional $35,000 into their mortgage to improve or
upgrade their home before move-in.
 With this product, homebuyers can quickly and easily tap into
funds to pay for property repairs or improvements, such as
those identified by a home inspector or FHA appraiser.
 Fund Disbursement Guidelines:
 Checks are issued jointly to borrower and contractor/sub-
contractor
 Signed draw request and lien release is required prior to fund
disbursement
 Maximum of 2 disbursements per contractor/sub-contractor
 First disbursement can be no more than 50% of the total cost of
the line item
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10. NOTE to HMCs: slides 5-8 cover temporary buydowns and slides 9-13 cover 203(K) Streamline financing. Choose one
or the other for your deck before printing or saving to your desktop. Be sure to delete all notes prior to making this presentation.
203(K) Streamline financing
Program benefits
 Flexibility—Renovation amounts up to $35,000.
 Satisfied clients—Provides buyers a financing tool
that allows them to make immediate changes/home
improvements will make for more satisfied
customers.
 Eligible renovations—A broad range of improvements
are allowed, from new paint and carpet to replacing
well and septic.
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11. NOTE to HMCs: slides 5-8 cover temporary buydowns and slides 9-13 cover 203(K) Streamline financing. Choose one
or the other for your deck before printing or saving to your desktop. Be sure to delete all notes prior to making this presentation.
203(K) Streamline financing
Easy processing
 Buyers receive the money to purchase* plus the
money to renovate in one seamless transaction.
 One application
 One closing
 One monthly payment
 Loan Amount is based on the “After Improved Value” of the
property. The interest on any portion of credit greater than
the fair market value of the property is not tax deductible for
Federal Income tax purposes. Your client should consult
their tax advisor regarding the tax deductibility of interest
and charges.
*Also allowed on refinances.
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12. NOTE to HMCs: slides 5-8 cover temporary buydowns and slides 9-13 cover 203(K) Streamline financing. Choose one
or the other for your deck before printing or saving to your desktop. Be sure to delete all notes prior to making this presentation.
203(K) Streamline Financing
Creating more options
 If a prospective buyer likes the house, but it needs some updating,
this loan may allow them to make the updates right after closing.
 If the house is perfect, but the color schemes don’t work, this loan
allows them to paint and replace flooring to suit their décor.
Instead of taking your buyers to another house, 203(K) Streamline
financing enables you to show buyers how they can purchase the
home and access the financing they need to make the desired
changes with one loan!
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13. NOTE to HMCs: slides 5-8 cover temporary buydowns and slides 9-13 cover 203(K) Streamline financing. Choose one
or the other for your deck before printing or saving to your desktop. Be sure to delete all notes prior to making this presentation.
203(K) Streamline financing
Increases purchasing options
Scenario: A buyer needs an FHA loan but the listing has issues such
as lead base paint, termite damage, septic, water damage, mold or rot
damage. This property typically would not be allowed with FHA
financing.
With the 203(K) Streamline, it is!
 The borrowers simply get an estimate to have the issues corrected,
finance the cost in the loan amount and have the work done after
closing.
 Now the seller will not have to correct those conditions before the
buyer could receive approval on an FHA loan.
 This is a win-win for all parties! Seller has their house sold, buyers
get their new home and you get paid!
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14. Gain greater exposure
With a special co-branded listing invitation
 Attract selling agents with
an invitation to preview the
home
 Fuel interest by promoting
that Wells Fargo Home
Mortgage provides special
financing on this listing
 Market yourself and further
leverage the power the Wells
Fargo brand has with
consumers
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15. Gain greater exposure
With yard signs and MLS statement
 Leverage the power of one of
the most recognized brands
in the world.
 Wells Fargo Home Mortgage
yard signs may increase
traffic and calls on listings.
And our flexible financing
options can help convert
more lookers into buyers! SAMPLE
 Simply add a statement in
the MLS that promotes the
special financing Wells Fargo
Home Mortgage provides on
your client’s property.
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16. Simplify your sales with FHA financing
Wells Fargo Home Mortgage provides a suite of government products,
including FHA fixed- and adjustable-rate mortgages.
Government products are an alternative to conventional home financing
for first-time and repeat homebuyers.
FHA loans provide flexible qualifying guidelines:
 No restrictions on the amount of income
 Larger share of income qualifies toward the monthly payments
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17. FHA financing
Low cash requirements for borrowers. The down payment and all of the
closing costs on an FHA loan can be funded by a gift to the borrower or a down payment
assistance program.
Low margin options. The margin is the amount added to the floating market index
to determine the new interest rate the borrower will pay when an ARM resets. The smaller
the margin, the lower the borrower’s reset rate will be. And Wells Fargo Home Mortgage
offers low FHA margins -- between 1.75% and 2.25%n
Lowest annual and lifetime caps. The rate on a 3/1 or 5/1 ARM1 cannot rise by
more than 1% at any annual reset (it is often 2% or more on conventional ARMs). Over the
life of an FHA loan, the rate cannot be higher than 5% above the loan’s initial rate.
Available to non-citizens. Permanent and non-permanent resident aliens are eligible.
1. 1/1, 7/1 and 10/1 ARMs are not currently available.
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18. And there’s more…
The Listing Edge® program is just one of many
benefits and services Wells Fargo Home Mortgage has
developed to help real estate agents like you.
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19. StagecoachPriority® value package
Start building your business today
From helping you build business,
to approving your buyers, to our
StagecoachPriority® program
proves that what’s important to
you is important to us:
 Count on our Single Source® team to help your buyers find the right loan
 Reliable preapprovals – our PriorityBuyer® letter provides purchase confidence2
 Business builders – let us introduce buyers and sellers to you through
Buyer ConnectionsSM.
2. A PriorityBuyer® preapproval is based on our preliminary review of credit information only and is not a commitment to lend. We will
be able to offer a loan commitment upon verification of application information, satisfying all underwriting requirements and conditions,
and providing an acceptable property, appraisal, and title report. Not available on nonconforming products or for certain FHA transactions
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20. ®
Single Source team
Makes all kinds of deals happen
 Connect your buyers to help them find the right financing.
 Our in-house experience helps make your deals happen quickly
and smoothly.
Wells Fargo Home Mortgage handles:
• First-time homebuyers
• Move-up homebuyers
• Investment properties
And has access to niche financing specialists
Affluent Relocation New Renovation
Buyers Construction
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21. PriorityBuyer® Preapproval
It’s like cash in hand – from a brand you can rely on
 Gives you credit-checked, ready-
to-buy customers whose purchase
power is confirmed in writing3
 Lets you maximize the time and
effort you spend showing and
selling homes
 Provides your clients with reliable,
preapproved financing, in clearly
specified loan amounts and terms.
 It’s the shortest distance between
the opening bid and the closing
table.
3. A PriorityBuyer® preapproval is based on our preliminary review of credit information only and is not a commitment to lend. We will be able to offer
a loan commitment upon verification of application information, satisfying all underwriting requirements and conditions, and providing an acceptable
property, appraisal, and title report. Not available on nonconforming products or for certain FHA transactions.
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22. Buyer ConnectionsSM
Introducing buyers and sellers to you
 Every day we connect with homebuyers and sellers
who aren’t yet working with a real estate
professional.
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23. Wells Fargo
One of the world’s most respected companies
Forbes Global Finance Magazine
Top 20 Biggest Public Best Corp/Institutional Bank
Companies in the World (2011) (U.S.) (2011)
American Banker American Customer
One of America’s Top Banking Satisfaction Index
Teams (2011) #1 Customer Satisfaction
American Large Banks (2011)
Corporate Responsibility
Mazaine DiversityInc. Magazine
100 Best Corporate Citizens Top 50 Companies for Diversity
(2011) (2012)
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24. Team up with an industry leader
 The #1 retail mortgage lender
 The #1 originator of renovation financing
 The #1 FHA/VA lender
 The #1 lender to new construction homebuyers
 The #1 jumbo mortgage lender
As an industry leader, we have the capabilities and the desire to help
you gain a stronger competitive edge and build your business!
This information is for real estate professionals only and is not intended for distribution to consumers.
Information is accurate as of printing and subject to change without notice. Wells Fargo Home Mortgage
is a division of Wells Fargo Bank, N.A. © 2011 Wells Fargo Bank, N.A. All rights reserved.
NMLSR ID 399801 #103859 REV 6/12
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