Post on 30-May-2020
transcript
BUYING IN WINTER YOUR GUIDE TO A SMART MOVE
TA B L E O F C O N T E N T S
GET TO KNOW OUR TEAM
Homebuying Made Easy
Not All Lenders Are Alike
You’ll Love Working With Us
LoanFly: The App That Gets You Home
TAKE A LOOK AT THE HOUSING MARKET
Why Buy a Home in the Winter?
Buying Beats Renting
BOOST YOUR HOMEBUYING KNOW-HOW
Learn the Lingo
Homebuying Myths Debunked
Know Your Credit Score: Credit Overview + Handy Tips
7 Steps to Home: The Mortgage Process
Kick Your Prequali!cation Up a Notch
Getting Your “Docs” in a Row: A Quick Guide to Loan Paperwork
Down Payment Strategies
How to Save in Closing Costs
How to House-Hunt Like a Boss (And How a Realtor Can Help)
10 Homeownership Facts
8 Insider Buying Tips
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A D I F F E R E N T K I N D O F B U Y I N G E X P E R I E N C E
A DIFFERENT KIND OF EASYBuying a home and getting a mortgage can seem
overwhelming. But that’s all about to change. With
Priority Home Lending by your side, you’ll have all the
guidance and support you want every step of the way.
Plus, you’ve got this handy guide as your road map to
home. You’ll !nd everything from housing market trends
to down payment strategies and more info to give
you a complete overview of homebuying. And
you can always reach out to our team at any time.
We’re here to make your mortgage experience as
effortless as possible.
PULL UP A SEAT,
ENJOY SOME HOT
COCOA, AND RELAX
With Pr ior i ty Home Lending , you won’t be left
out in the cold on your journey home.
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PRIORITY HOME
LENDINGBROKER BANK/CREDIT UNIONS
COMPETITIVE
INTEREST RATES
BROAD PRODUCT MIX
ONE POINT OF
CONTACT? ?
IN-HOUSE
PROCESSING? ?
IN-HOUSE
UNDERWRITING? ?
IN-HOUSE FUNDING ?
COMMITMENT TO
ON-TIME CLOSING? ?
STATE LICENSE ?
not all lenders are alike
THE BOTTOM LINE:
RATES AND PRODUCTS ARE A COMMODITY. AT PRIORITY HOME LENDING,
OUR PROCESSES AND PEOPLE SET US APART!
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OUR PROGRAMS + PRODUCTS
• First-time homebuyer programs
• Down payment assistance programs
• FHA, USDA, and VA loans
• Conventional and jumbo loans
• Renovation and new construction loans
• Second homes and investment properties
• Extended interest rate locks
you’ll love us WE’RE A FULL-SERVICE MORTGAGE LENDER. THAT MEANS
WE HAVE ALL THE RESOURCES AND PROGRAMS TO MAKE
YOUR DREAM HOME HAPPEN.
OUR PERFORMANCE
• 100% on-time closing commitment
• Financially stable and secure
• In-house processing, underwriting, closing, and funding
• Access to the nation’s top mortgage investors
• Real-time loan pricing for competitive rates and fees
• Innovative technology for secure, streamlined transactions
• Quick loan approvals and ready to close in 10 days
• Remarkable service every step of the way
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PREQUALIFY QUICKLY
With a few taps, you can know for sure
how much you can afford before you start
shopping for a home.
SEARCH HOMES
ANYTIME, ANYWHERE
Browse up-to-date listings in your area
and in your prequali!cation range.
GET OUR AMAZING APP FOR AN AMAZING HOME BUYING EXPERIENCE
It’s your home loan the way you want it: On your terms. With LoanFly®, you
have an all-in-one app that helps you soar from start to home in no time.
Plus, you’ll have us by your side whenever you need us.
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G E T R E A D Y F O R TA K E O F F1) Vis i t www.LoanFly.com on your Apple or Android device
2) Download LoanFly® on your device 3) Start soar ing home
Avai lable for Apple and Android devices. Internet access required.
GET ANSWERS
Learn all you need to know about the mortgage process with on-
demand resources and how-to videos. You can also request rates
and calculate estimated payments.
ACCESS LOANFLY® BORROWER PORTAL
Our secure online portal gives you a transparent view of your mortgage transaction. Easily track your loan status, upload
documents, and do so much more in one convenient place.
MAKE A CONNECTION
LoanFly® makes it easy to $y solo during
the process. But you can always quickly
connect with our team at any time.
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WINTER CAN BE A HOMEBUYER’S WONDERLAND. LIKE BOOKING A VACATION, THERE ARE
BENEFITS OF BUYING A HOUSE OUTSIDE OF PEAK SEASON. BUT WITH THE POTENTIAL TO SAVE
MONEY, THIS ONE IS THE BIGGEST.
With the expected seasonal price drop, you could get more house for less money.
HERE’S WHY A WINTER MARKET CAN FAVOR BUYERS:
Price drops. Close to 30 percent of homes cut pr ices this winter, the highest number seen in eight years. [1]
More houses. Fal l housing inventor y only decreased sl ight ly. And, inventor y was up from the previous year. [2]
Rising rent. Recent rents saw a smal l jump of $6 and are cont inuing the hikes that started this summer. [3]
Big savings. Some days are better than others to get a home pr ice break. December 26 is off ic ia l ly the top day of the year to buy. Februar y 9 is another date that could give you some savings. [4]
HERE ARE FIVE MORE BENEFITS THAT COME WITH WINTER HOMEBUYING:
1. Less competit ion and fewer budding wars.
2. More motivated sel lers, loan off icers, and realtors.
3. Faster c losings, in as few as 10 days.
4. Extra t ime to house-hunt.
5. Chance to check a home’s drafts, heat ing , structure, and insulat ion.
Along with lower housing pr ices, you could save even more money when you close on your mortgage in 10 days. Gett ing you home in 10 beats the industr y average by over four weeks. [5]
Shaving a month off the homebuying process could a lso save you thousands on the extra mortgage, rent, ut i l i t y, and storage costs you’d have to pay other wise.
*Timeframe not typical . Not a l l loans wi l l c lose in 10 days. For educat ional purposes only. Please contact a qual i f ied
professional for specif ic guidance. Sources deemed rel iable but not guaranteed.
Sources:
1. “Near ly One in Three Homes For Sale in October had a Pr ice Drop - - Highest Level Since at Least 2010.” Redf in, Nov. 2018.
2. “Exist ing-Home Sales Increase for the First T ime in Six Months.” Nat ional Associat ion of REALTORS®, Nov. 2018.
3. “[NATIONAL REPORT] Renters Denied Hol iday Concessions as Rent Pr ices Increase Nat ionwide.” Abodo, Dec. 2018.
4. “Top 10 Best Days of the Year to Buy a Home.” ATTOM Data Solut ions, Nov. 2018.
5. “Originat ion Insight Report .” El l ie Mae®, May 2018.
THE #1 REASON TO BUY
A HOME IN THE WINTER
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BUYING BEATS RENTINGHERE’S A BREAKDOWN OF HOW OWNING A HOME COULD BE THE RIGHT MOVE TO
SECURING – AND IMPROVING – YOUR FINANCES.
HOMEOWNERSHIP PAYS OFF IN 4 YEARS*
A mortgage is an investment in your equity
Rent is an investment in your landlord’s equity
OWNING IS CHEAPER THAN RENTING**
Buying a median 3-BR home cheaper than renting it in 54% of U.S. counties surveyed
A f ixed-rate mortgage can lock in a f ixed, affordable house payment
Rents have steadi ly been r is ing s ince 1988
Mi l lennia ls may have paid more than $92K in rent by the t ime they reach 30
HOMEOWNERSHIP BOOSTS NET WORTH***
Average homeowner has $231,400
Average renter has $5,200 (44X LESS THAN A HOMEOWNER)
OWNING CAN SAVE MORE INCOME****
Need 17.1% of income to BUY median-priced home
Need 28.8% of income to RENT the same home
*Source: MarketWatch.com – Even with mortgage rates up, buying instead of rent ing makes sense for many (Peter Moric i
– May 29, 2018). **Sources: ATTOM 2018 Rental Affordabi l i t y Report ; 2018 RentCafe Study. ***Source: Federal Reser ve
– Sur vey of Consumer Finances (2013-2016) – 2016 median net worth of homeowners vs. median net worth of renters.
****Source: Pulsenomics Q1 2018
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HERE ARE COMMON
MORTGAGE TERMS THAT ARE
USED THROUGHOUT THE
HOME-FINANCING PROCESS
ADJUSTABLE-RATE MORTGAGE (ARM)
ARMs tend to have an initial lower interest rate than a !xed-rate
home loan. However, this rate may change over the loan term based
on a set index. Payments for ARM loans can increase.
ANNUAL PERCENTAGE RATE (APR)
This is your annual cost of the loan represented as a percentage.
APR allows homebuyers to compare different mortgage programs
based on their annual cost.
APPRAISAL
This is a professional analysis to determine the fair market value of a
property. An appraisal is required to secure !nancing for a home.
CLOSING COSTS
These are the costs and fees that are due on the date of closing,
when a borrower obtains their mortgage and receives the title to their
property. Closing costs include insurance, taxes, and other applicable
fees. Your lender can give you a full list of
closing costs.
CLOSING DISCLOSURE (CD)
This form is a statement of !nal loan
terms and closing costs. You must receive
this form from your lender at least 3 days
before your closing. You can compare this
document with your Loan Estimate.
DEBT-TO-INCOME RATIO (DTI)
Lenders use this ratio to determine if
a borrower can afford their monthly
mortgage payment. DTI is calculated by
dividing the borrower’s monthly debts by
their pre-tax monthly income.
DOWN PAYMENT
This is the portion of the purchase price
that the buyer pays upfront before
!nancing a mortgage. Ask your lender
about low- and no-down payment options.
DOWN PAYMENT ASSISTANCE (DPA)
Programs that offer quali!ed borrowers !nancial
assistance with down payment or closing costs.
FIXED-RATE MORTGAGE
With this type of mortgage, a borrower’s interest rate
stays “!xed” and will not change during the life of the
loan.
LOAN ESTIMATE (LE)
A detailed estimate of the total costs, given to
the borrower 3 days after the lender receives their
application. The lender’s origination fee, points,
escrow, title insurance, appraisal fee, taxes, and other
expenses should be included.
LOAN-TO-VALUE RATIO (LTV)
To calculate this ratio, the lender divides the mortgage
amount by the purchase price or the appraised home
value. LTV helps assess the lender’s risk of the loan.
MORTGAGE INSURANCE (MI)
This insurance protects the lender if a borrower
forecloses on their property. Borrowers pay for MI,
allowing lenders to approve loans they might not have
otherwise. MI may be required with a less than 20%
down payment.
ORIGINATION FEE
This is the fee that a lender charges to prepare the
documents related to a borrower’s mortgage.
PREQUALIFICATION
This is the process of determining how much you’re
eligible to borrow before you apply for a loan.
RATE LOCK
This is a written commitment between you and the
lender to hold a certain interest rate for a speci!ed
period of time.
TITLE
This is a document that states a real estate transaction
took place and establishes the buyer as the legal and
exclusive owner of the property.
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SEPARATE FACT FROM FICTION! HERE ARE THE TWO MOST PERSISTENT MYTHS OUT
THERE—AND THE TRUTH YOU SHOULD KNOW ABOUT.
HOMEBUYING MYTHS DEBUNKED
MYTH #1: YOU NEED A 20% DOWN PAYMENT.
A 20% down payment is a good goal , but i t ’s tota l ly not a requirement. There are programs
out there that require l i tt le to no money down, as wel l as no mortgage insurance. Plus, some
homebuyers could qual i fy for down payment assistance. Most recent homebuyers qual i f ied for
mortgages with less than 20% down. [1]
OF FIRST-TIME BUYERS
PUT LESS THAN 6% DOWN
OF FIRST-TIME BUYERS
PUT LESS THAN 20% DOWN
OF ALL BUYERS
PUT LESS THAN 20% DOWN
For educat ional purposes only. Sources deemed rel iable but not guaranteed.
Sources: 1) Realtors Conf idence Index from the Nat ional Associat ion of Realtors. 2) Most recent El l ie Mae Originat ion
Insight Report of recent ly approved loans.
MYTH #2: YOU NEED PERFECT CREDIT.
Def in i te ly not true! Whi le a higher credit score could mean better loan terms, you can qual i fy for
a mortgage with less-than-perfect credit . Most borrowers approved for a mortgage qual i f ied with
600 – 749 scores. [2]
61% 74% 52%
500-549 550-559 600-649 650-699 700-749 750-799 800+
51.3%
.07% .8%8.7%
18.7%23.9%
34.5%
13.4%
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A CREDIT SCORE NOT ONLY INFLUENCES YOUR HOME-BUYING POTENTIAL, BUT IS
ESSENTIAL FOR OBTAINING SEVERAL SERVICES AND BIG TICKET ITEMS. “90 OF THE TOP
100 LARGEST U.S. FINANCIAL INSTITUTIONS USE THE FICO SCORE TO MAKE CONSUMER
CREDIT DECISIONS,” ACCORDING TO MYFICO.COM.
know your score
Y O U R F I C O S C O R E I S R E V I E W E D B Y M O S T O F T H E F O L L O W I N G E N T I T I E S :
• Employers
• Mortgage lenders
W H A T M A K E S U P Y O U R S C O R E ?
When you’re applying for a mortgage, your credit score is a major factor in determining your interest rate and approval for the loan.
Typically, the higher your credit score, the better your chances for approval and securing a lower rate. But, just how exactly is your
score determined? Most companies use a FICO score that is comprised of !ve elements:
• Landlords
• Insurance companies
• Cell phone companies
• Utility companies
• Credit card companies
• Cable companies
Source: MyFICO.com. Source deemed reliable but is not guaranteed.
Late payments lower
your score, so pay
your bills on time.
Your payment history35%
30%How much you owe
Keep outstanding balances
under 30% of your credit limits.
15%Length of your credit historyA short history isn’t a bad thing,
if you show responsible credit
management. Having a few
credit accounts is better than
having no credit at all.
10%
New credit accounts Lots of new credit account
inquiries can lower your
score. Mortgage and
auto loan inquiries are an
exception; these count
as one inquiry within a
30-day period.
10%
Types of credit you have A variety of credit types – like an
auto loan, credit cards, and other
credit accounts – could
boost your score.
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S O , W H A T ’ S A G O O D S C O R E ?
FICO scores range from 300 to 850, with higher numbers being better. A score of 700 is a good indicator of !nancial health,
and most lenders prefer scores at or above that number, but it is not required.
W H A T ’ S T H E N E X T S T E P ?
OBTAIN A CREDIT REPORT. This is a free service available to you each year, so take advantage.
Visit www. AnnualCreditReport.com and request your free copy from all three credit reporting companies.
• EQUIFAX – WWW.EQUIFAX.COM
• EXPERIAN – WWW.EXPERIAN.COM
• TRANSUNION – WWW.TRANSUNION.COM
Beware of other companies that charge fees for credit reports, because they are often not as accurate as the
three mentioned above.
C H E C K F O R M I S T A K E S
There is no charge for checking into existing errors, so make sure there are no inaccuracies listed on your report. It
is your responsibility to notify the credit bureau of any mistakes, which should be cleared up within 30 days of the
report date. If you need to boost your score, here are a few tips that could make a difference to your score. While
these are general tips, be sure to check with your lender before paying off large accounts and moving your money
around for closing costs and the down payment.
• MANAGE YOUR CREDIT CARD – Keep balances to less than 30 percent of your limit
• CORRECT CREDIT LIMITS – It’s important for your credit card company(s) to report your correct limit to the major credit
bureaus; your report could suffer if it shows you’re over the reported limit, when the limit is actually higher
• GET CREDIT WHERE CREDIT IS DUE – Be sure your report shows all of your credit accounts, especially the healthy ones
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7 steps TO HOME
WHAT CAN YOU EXPECT
FROM START TO FINISH?
THESE STEPS GIVE YOU A
BEHIND-THE-SCENES LOOK.
1. PREQUALIFY
• Do this !rst so you know how much home you can afford
• Prequalify with our LoanFly® app - Get the app at LoanFly.com
2. MEET WITH YOUR LOAN OFFICER
• Discuss programs, monthly payments, and interest rates
• Get a prequali!cation letter to strengthen your purchase offer
• Put the !nishing touches on your loan application
3. SHOP FOR YOUR DREAM HOME
• Work with a local realtor to !nd the right home in your
prequali!cation range; if you need a referral, let us know
• You can also search for homes in our LoanFly® app
• Let your loan of!cer know when the seller accepts your offer
4. DURING THE LOAN PROCESS:
• Sign and return initial loan documentation
• Submit an executed purchase contract to your loan of!cer
to lock your rate
• Schedule an inspection to check the home for any
major issues
• Your lender orders the appraisal and lets you know key
contract dates
• Secure homeowners insurance coverage before your closing
• Promptly provide requested documentation
IT’S REALLY THAT EASY! YOU’RE NOW THE PROUD OWNER OF A NEW
HOME. AND YOU’VE MADE A FRIEND FOR LIFE:
WE ARE ONLY A CALL AWAY TO ANSWER YOUR
QUESTIONS ABOUT YOUR MORTGAGE.
5. GET READY FOR FINAL APPROVAL
• The processor orders title commitment and preps your
loan for underwriting
• The underwriter makes the !nal loan approval decision
6. REVIEW THE CLOSING DISCLOSURE (CD)
• Your CD includes your !nal loan terms and closing costs
• You get the CD at least 3 days before closing
• We con!rm closing details: Where, when, who, and
how much for your closing costs
7. CLOSE ON YOUR HOME
• Closing takes place at the title company or realtor’s of!ce
• Bring a valid driver’s license for each borrower, plus a
certi!ed/cashier’s check if closing costs are due
(payable to the escrow company)
• Sign documents, get the keys, and celebrate because
you’re a homeowner!
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KICK YOUR PREQUALIFICATION
UP A NOTCH Getting prequalified is an important first step of
the homebuying process. You’ll f ind out in advance
exactly how much you can afford to buy. You’ll also
have a competitive advantage and show sellers you’re
ready, will ing, and able to buy a home. But not all
prequalifications are created equal.
GOOD
You prequal i fy without sending any requested loan documents. (Check page 16 for a quick
over view.) You can start shopping for a home, but your prequal i f icat ion shows we’ve only reviewed
your credit report . Your offer may not be as strong as one from a buyer who has submitted
documentat ion. Which means someone else could get the home you’ve been eyeing!
BETTER
You prequal i fy and send most of the requested loan documents. Your f i le is run through the
automated under writ ing system, and you are condit ional ly approved for a loan before you even start
shopping for a home. Ful l d isclosure: We may request a few more i tems from you after we get your
in i t ia l paper work. Keep in mind, we won’t ask for anything that’s not super important to gett ing
your paper work in order!
EVEN BETTER
You prequal i fy and send al l of your requested loan documents. We ver i fy a l l of your f inancia ls, and
you are off ic ia l ly pre-under writ ing qual i f ied. Congrats! You can now conf ident ly make an offer on a
home backed by our commitment to lend, which can help you stand out from other buyers.
Know the good, better, and EVEN BETTER way to prequalify.
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loan
ch
eck
list
G ET T I N G YO U R “ D O C S ” I N A R OWHere’s a quick overview of documentation needed to get a home loan. You may be asked for
more items along the way based on your financial profile and loan program.
By furnishing any and/or all of the documentation, an applicant is in
no way obligated to accept the terms and conditions of the mortgage
offered, nor does the borrower have to provide these documents to
receive a Loan Estimate.www.LoanFly.com
BANK STATEMENTS
Showing most recent two-month history
- ALL PAGES
BROKERAGE STATEMENTS
Showing most recent two-month history
- ALL PAGES
RETIREMENT STATEMENTS
Showing most recent two-month history
- ALL PAGES
EMPLOYMENT PAY STUBS
From the last 30 days of all jobs held by
each applicant
W-2 FORMS
From the most recent two years for each
wage-earner applicant
PERSONAL FEDERAL
INCOME TAX RETURNS
(1040s)
From the most recent two years, with
all schedules, statements, and addenda
(completed and signed)
MOST RECENT
MORTGAGE STATEMENT
For any other properties owned by the
applicant
COPY OF DRIVER’S LICENSE
FOR EACH APPLICANT
HOMEOWNERS
INSURANCE AGENT’S
CONTACT INFORMATION
Manage paperwork, send documents,
check your credit score, and more in our
LoanFly® Borrower Portal.
UPLOAD DOCUMENTS
WITH THE GREATEST
OF EASE!
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DOWN PAYMENT STRATEGIES
1. GET A LARGER TAX REFUND
Decrease the number of withholding exemptions
you claim on your employer’s tax form and apply the
refund to your down payment. You can work through
it manually on the IRS page to increase your refund
by tweaking your paycheck at
www.irs.gov/individuals/employees/tax-withholding.
2. BORROW MONEY
Many borrowers ask relatives for money to help
purchase a home. Tax laws will allow relatives to
gift a certain amount without tax consequences.
Consult a tax professional to learn the maximum
amount others can contribute. Our team can offer
guidance on what kinds of cash gifts can be used
for down payment.
3. ASK THE HOME SELLER TO CONTRIBUTE
If you pay the seller ’s asking price, they might be will ing to
credit the closing costs, which can leave more funds free
for your down payment. Talk to your lender first to find out
about your options.
4. DIRECTLY DEPOSIT A PORTION OF YOUR PAYCHECK
INTO A SAVINGS ACCOUNT
It could take up to two years to set aside enough savings for
a down payment. But Time Money estimates based on the
median household income of $61,000 and an average home
price around $252,000, you could get an FHA loan with a
minimum 3.5% down after saving 10% of salary for just 18
months. If you’re able to contribute $200 every two weeks,
you’d save $5,200 after a full year (excluding interest) and
could qualify for a low-down payment program.
In addition to asking your lender about low- or no-down payment programs,
consider these cash-saving opportunities.
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ASKING FOR A LITTLE EXTRA AT THE CLOSING TABLE HAPPENS MORE THAN MANY
BUYERS REALIZE. IF YOU’RE IN THE PROCESS OF BUYING A NEW HOUSE — AND
ESPECIALLY IF YOU’RE A FIRST-TIME BUYER — YOU COULD ASK THE SELLER TO COVER
THE COST OF YOUR CLOSING.
HOW MUCH WILL CLOSING COST?
Your lender can go over specif ic c losing costs in detai l , but here are some bal lpark f igures:
• Freddie Mac est imates c losing fees as 2 to 5 percent of the purchase price
• Based on this percentage, Zi l low est imates the average buyer pays about $3,700[1]
Closing costs are a lso referred to as sett lement fees. This is the amount of money a buyer needs
to pay to take out a mortgage. Closing costs may be charged by any or a l l people involved in a
purchase, l ike a mortgage lender, a realtor, and other third-party ser vices
CLOSING COSTS PAY FOR:
• Appraisal fees
• Attorney fees
• Credit report fees
• Government recording fees
• Lender or ig inat ion fees
• Sur vey fees
• Tax ser vice fees
• T i t le ser vice fees
• Under writ ing fees
Source: 1) Z i l low.com – What are c losing costs and how much are they? Source deemed rel iable but not guaranteed.
THE SECRET TO SAVING $3,700 AT CLOSING
THE GOOD NEWS?
Asking a sel ler to pay these costs could save you
thousands. Even better news? A lot of homebuyers are
doing i t! Sel lers who agree to pay a l l or a port ion of
c losing costs can help c lose the deal quicker.
It never hurts to ask if the seller can help with
closing costs. Talk with your loan off icer about the
right approach and if there are l imits to seller-paid
closing costs based on the loan program. Your loan
off icer can also discuss down payment and closing cost
assistance programs that might be avai lable to you.
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HOW TO HOUSE-HUNT
LIKE A BOSS
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THINK ABOUT WHAT’S IMPORTANT TO YOU.
Sit down and write down ever ything you could possibly want in a home. Then,
order the l ist according to importance. Once you start searching for a home, you
won’t feel over whelmed by the many opt ions out there.
SEARCH!
Work with a local realtor to f ind homes in the area. You can also search by z ip
code, pr ice range, and other cr i ter ia in our LoanFly® app. I f you need a realtor
referra l , p lease contact our team.
COMPARE AND CONTRAST.
Refer to the l ist you put together when you check out homes. Consider the pros
and cons of each house you vis i t . You can also use the checklist on the next
page to keep your thoughts about each home together.
20
COMPARE THESE 14 FEATURES TO
SEE WHICH HOUSE STANDS OUT
PROPERTY ADDRESS:
DATE SEEN:
1. PRICE:
2. LOCATION AND SCHOOL DISTRICT:
3. MONTHLY P&I (PRINCIPAL & INTEREST PAYMENT):
4. SQUARE FOOTAGE:
5. NUMBER OF BEDROOMS:
6. NUMBER OF BATHROOMS:
7. SIZE OF KITCHEN/SPECIAL FEATURES:
8. SIZE OF DINING ROOM/SPECIAL FEATURES:
9. SIZE OF LIVING ROOM/SPECIAL FEATURES:
10. SIZE OF BACKYARD/SPECIAL FEATURES:
11. GARAGE OR STORAGE SPACE:
12. APPLIANCES:
13. ACCESS AND COMMUTING:
14. UPGRADES NEEDED:
RATE THIS PROPERTY ON A SCALE OF 1 (NOPE!)
TO 5 (WHEN CAN I MOVE IN?):
Use this quick rate sheet to rank ever y home you vis i t .
21
wor
k w
ith
a r
ealt
or
B U Y I N G A H O M E I S A N E X C I T I N G T I M E !
IT CAN ALSO BE CHALLENGING. A REALTOR CAN GIVE YOU THE SUPPORT
YOU NEED SO YOU CAN ENJOY YOUR HOME BUYING EXPERIENCE.
Ready to !nd your dream home? We have worked with some of the most dedicated
and experienced realtors in the market. Please let us know if you’d like a referral!
Here are some of the many bene!ts of working with a realtor.
REAL GUIDANCE FROM A
REAL PERSON
While there are tons of homebuyer resources out
there, a good realtor can help you make sense of all
that information. They can point out the pros and
cons of homes you tour. They can also help you
understand the buying process and exactly what
to expect along the way.
MORE HOMES TO
CHOOSE FROM
A realtor has access to the Multiple Listing Service
(MLS), which offers thousands of the most up-to-date
listings of available homes. You’ll have more options
to easily and quickly !nd the right home for you.
CLOSE WITH
CONFIDENCE
An experienced realtor can
negotiate on your behalf, prepare
your purchase contract, and resolve
issues that could affect your
closing. With your permission, we
can also send your realtor loan
status updates to keep your closing
on track.
NO COST TO YOU
Typically, the seller will pay the
realtor who helps you buy a home.
22
10 HOMEOWNERSHIP
FACTS
WHETHER YOU ARE BUYING
A HOUSE FOR YOUR FAMILY,
AN INVESTMENT PROPERTY
FOR FUTURE RESALE, OR
A SECOND HOME, THERE
IS A LOT TO LEARN ABOUT
HOMEOWNERSHIP.
To get the most out of your purchase, you
need to have all the facts. Here’s some great
information to help you be a prepared and
informed homeowner.
1. YOUR HOME’S EQUITY IS IMPORTANT.
If the value of your home is worth more than you owe,
you can use this to leverage investment properties, or
get cash for other expenses.
2. WHEN BUYING A HOME, BE SURE TO
CONSIDER YOUR LONG-TERM PLANS.
While the cost of a home is a big factor, you should
also think of your purchase as an investment. How can
your home achieve your goals? Discuss your ultimate
plans with your lender and how your mortgage could
serve you down the road.
23
3. ACCORDING TO THE NATIONAL
ASSOCIATION OF REALTORS,
THE MEDIAN AGE OF FIRST-TIME
HOMEBUYERS IS 31.
More young professionals are able to
purchase homes for their families, and
more affordable housing options like
planned communities and townhomes
have developed across the nation.
4. RISING RENTAL COSTS ARE A
COMMON OCCURRENCE.
As leases are renewed, owners of rental
properties will pass rising tax, insurance,
utility, and maintenance costs on to
their tenants. Like houses, rental units
are equally susceptible to rising
occupancy costs.
5. HOMEOWNERS WITH A STRONG
SENTIMENTAL ATTACHMENT TO THEIR
HOME OFTEN PRICE THEIR PROPERTY
WITH UNREALISTIC EXPECTATIONS.
As you’re house hunting, check
neighborhood comparable sales to make
sure you’re getting a fair deal.
6. DON’T FORGET THAT MORTGAGE
INTEREST AND PROPERTY TAXES ARE
INCOME TAX DEDUCTIBLE.
Be sure to take advantage of this, as it can
save you hundreds of dollars per year.
7. CAUTIOUSLY CONSIDER ALL HOME IMPROVEMENTS.
While many homeowners want to update their house to satisfy
their personal taste, be careful not to over-improve, as it can be an
expensive mistake. Improvements such as garages converted to
extra rooms or space designed to accommodate one type of family
could negatively affect your chances of selling.
8. WAITING ON THE MARKET TO CHANGE IS
NOT ALWAYS A GOOD IDEA.
Some buyers may put off purchasing a home in the hopes that prices
will go down. But the real estate market is unpredictable, so it’s just
as likely for prices to go up.
9. THERE’S NEVER A PERFECT TIME TO SELL A HOUSE.
Whether it’s a “buyer’s market” or a “seller’s market,” most people
will be on both ends of the process. As a seller, you might get more
for your home, but you are likely to have to pay more for the next
home you purchase.
10. A GOOD REAL ESTATE AGENT CAN SELL HOMES QUICKLY,
EASILY AND AT THE RIGHT PRICE.
While some people have been successful selling their home without
a realtor, it is a large risk to take. A knowledgeable realtor can protect
your interests during the process when it’s time to sell your home.
2424
WE KNOW EASY. WHAT WOULD YOUR LOAN OFFICER DO? HERE ARE 8 INSIDER HOME BUYING TIPS.
8 b
uy
ing
tip
s
1. ONLY SPEND WHAT YOU CAN AFFORD.
If you start looking at houses without knowing what
you can and want to afford, you could fall in love with a
house that’s above your price range. Prequalifying !rst
can help set your budget, as can applying a good rule
of thumb: Reserve 25% of your income toward your
home payment. Spending a quarter of your income on
your mortgage payment should safeguard you from
any unexpected !nancial changes.
2. DON’T FORGET ABOUT THE APR.
Every mortgage lender can charge different fees,
which is why it helps to shop around. On top of that,
you’ll also be seeing an APR (annual percentage
rate) that’s probably going to be higher than the !rst
interest rate on the loan. This APR includes your
mortgage interest rate, plus a few other charges like
loan points and fees. Comparing APR to APR (apples
to apples) among lenders is the most effective way to
compare the numbers on your loan.
3. TALK TO YOUR LOAN OFFICER BEFORE
ACCEPTING GIFT FUNDS FROM A FAMILY MEMBER.
Our team can help you and the donor meet
documentation requirements for the gift funds.
4. BE SURE THAT YOUR EARNEST MONEY CHECK
COMES FROM FUNDS IN YOUR OWN CHECKING
OR SAVINGS ACCOUNT AND ARE WRITTEN ON
YOUR OWN PERSONAL CHECK.
Don’t let anyone else pay the earnest money for you.
If this could be an issue, please contact your
loan of!cer immediately.
5. DON’T CHANGE YOUR JOB OR
YOUR PAY STRUCTURE DURING THE
FINANCING PROCESS.
Employment or income changes during the
process require re-veri!cation and could
delay your mortgage approval.
6. DON’T APPLY FOR A NEW LINE OF
CREDIT OR LOAN.
Loan of!cers are required to pull a
refreshed credit report within !ve days
of closing that will update your balances
and report any new accounts since your
credit was originally pulled. Your loan
approval could be jeopardized if you have
incurred new debt. Likewise, avoid making
large purchases and charging up existing
balances during the home loan process.
7. MAKE ALL PAYMENTS ON TIME.
Keep all of your accounts current to ensure no late payments
appear on the refreshed credit report before closing.
8. REMEMBER THAT WE ARE HERE FOR YOU!
Call us if you have any questions along the way. We want to
be your resource and to make your home-buying process as
smooth as possible.
1234 Street Address, Suite 123 / City, State 12345
LOAN OFFICER / LOAN OFFICER TITLE / NMLS 1234567
O 123.456.7890 / C 123.456.7890
LOANOFFICER@HOUSELOAN.COM / WWW.LOANOFFICER.COM
WE HAVE SEVERAL LOCATIONS IN BOTH WASHINGTON AND OREGON TO SERVE YOU. PLEASE CHECK OUT OUR WEBSITE AT PRIORITYLENDING.COM FOR A LIST OF LOCATIONS.
PRIORITY HOME LENDING, LLC | 12900 NE 180th Street, Suite 140A | Bothell, WA 98011 | Corporate Phone: 855.648.4663 | WA CL-1031451 (NMLS 1031451) | OR ML-5209. Licensed under the
Oregon Consumer Finance Act. CARMLA 41DBO-71795. Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act. This information is meant to be
a guide showing the !nancing process. Not all transactions may follow the illustration or steps listed due to the requirements and process speci!c to the type of home loan a borrower quali!es for.
Not a commitment to lend. Borrower must meet quali!cation criteria. Equal Housing Opportunity.