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On the Road to Home Ownership

On the Road to Home Ownership. Pre-Qualification Pre-Approval Loan Application. The First Steps. Pre-Qualification is a process that provides a "ballpark" estimate of your borrowing power.

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On the Road to Home Ownership

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  1. On the Road to • Home Ownership

  2. Pre-Qualification • Pre-Approval • Loan Application • The First Steps

  3. Pre-Qualification is a process that provides a "ballpark" estimate of your borrowing power. • The process estimates how much money a prospective home buyer might be eligible to borrow before they apply for a loan. • When you pre-qualify, you provide information about your credit, assets and debts. • Based on the information you provide and the loan type you want, you’ll find out how large of a loan amount you might qualify for but this is only an estimate and not a commitment to lend. • Pre-Qualification

  4. Pre-Approval can give you the edge when shopping for a home. • The pre-approved loan amount is based on a verification of your income, credit and assets (for some loan programs, verification of income or assets may not be necessary for qualified borrowers). • Pre-Approval is conditioned on a satisfactory appraisal of the property and title review (once you find the home you’d like to purchase), and no change in financial condition before final loan approval. • With Pre-Approval you can house-shop with assurance, because you'll know in advance how large a loan you could qualify for. • Pre-Approval could give you the home buying edge since real estate agents and home sellers will know you’re a serious homebuyer with the financial means to purchase a home. • Pre-Approval

  5. Once you’ve found your new home and made an offer to purchase the property, you’ll need to fill out a loan application. • The application provides information about a prospective borrower's employment, income, assets, debts, and information about the purpose of the home loan and about the property itself. An application is sometimes called a “1003” - the form number of this Fannie Mae Universal Residential Loan Application used by most lenders. • Items usually required for submission with the loan application include: • W2’s and federal income tax returns for the last two years. • Paycheck stubs covering the past thirty (30) days showing current and year-to-date income (if self-employed, different documents are required). • Three most recent monthly statements for any checking, savings or other financial accounts to show the source for down payment and closing costs funds. • Documents verifying other income sources or assets (ex. Social security, alimony, child support, pension, stocks, IRA’s, 401K, etc.) • Loan Application

  6. Do you need a lower monthly payment? A shorter loan term? The predictability of a fixed interest rate or the options available with an adjustable rate loan? • Considerations to help match a home loan to your specific situation • How long do I plan to stay in this home? • Is my goal to build equity faster or have lower monthly payments? • How comfortable am I if my payment changes? • How much cash on hand do I have? • Do I expect my income to increase? • What is my level of financial discipline? • Finding the Right Home Loan

  7. FHA (government-insured) loans • Veteran’s Administration (VA Loans) • Rural Housing Service Loans • Mortgage Revenue Bonds – assistance with down payment and closing costs • Down Payment Assistance Programs – assistance with down payment and closing costs • Lower Down Payment Options

  8. Low down payment • Down payment can be a gift • Flexible underwriting guidelines • Non-traditional credit allowed • Seller can contribute up to 6% • Fixed and adjustable rate programs available • FHA Loans

  9. Little down payment required with full entitlement • Loans up to $417,000 including funding fee with full entitlement • Seller contributions allowed up to 4% • More flexible income, employment and savings requirements • Fixed and adjustable rate programs available • VA Loans

  10. No mortgage insurance is required • No penalty for pre-payment • Designed for low income households who may not qualify for traditional loan financing • Less up front cash required vs. conventional FHA loans • Rural Housing Service Loans

  11. Second mortgages can be used for down payment assistance and/or closing costs, when available. • Easier qualification for low- and middle-income families • Often offer below market interest rates • Down payment assistance grants available • Mortgage Revenue Bond programs are state specific and may vary by region • Mortgage Revenue Bond Loans

  12. You’ll be surprised to learn how easy it is to purchase your first home! • Mortgage Revenue Bond Loans Name Mortgage Loan Originator - NMLS # Phone: xxx-xxx-xxxx - Cell: xxx-xxx-xxxx xxxx@homebridge.com - www.HomeBridge.com/YourName HomeBridge Financial Services, Inc. Corporate NMLS #6521, AL Consumer Credit License 21077; AZ Mortgage Banker License 922458; Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act. 4130749  CO Mortgage Company Registration, Regulated by the Division of Real Estate; CT Mortgage Lender License 10642; DE Chapter 22 Licensed Lender 11772; DC Mortgage Dual Authority License MLB6521; FL Mortgage Lender License ML100000179; GA Mortgage Lender License 22495; IL Residential Mortgage License MB.6760732; IN-DFI First Lien Mortgage Lending License 15700; IA Mortgage Banker License 2006-0328; KS Mortgage Company License MC.0025113; KY Mortgage Company License MC76089; LA Residential Mortgage Lending License; ME Supervised Lender License SLM11915; MD Mortgage Lender License 12402; MI 1st Mortgage Broker/Lender/Servicer Registrant #FR0017790; MN Residential Mortgage Originator License MN-MO-6521; MS Mortgage Lender License 6521; MO Residential Mortgage Loan Broker License 10-1956-A; NH Mortgage Banker License 16429-MB; NJ Residential Mortgage Lender License 9200151; NM Mortgage Loan Company License 2315; Licensed Mortgage Banker (B500691) – NYSDFS; NC Mortgage Lender License L-121619; OH Mortgage Broker Act Mortgage Banker Exemption MBMB.850046.000; OK Mortgage Broker License MB001985; OR Mortgage Lending License ML-3566; PA Mortgage Lender License 20394; RI Lenders License 20112804LL; SC-BFI Mortgage Lender/Servicer License MLS–6521; TN Mortgage License 3010; TX–SML Mortgage Banker Registration; VT Lender License 6093 MB; Licensed by the VA State Corporation Commission # MC3046; WA Consumer Loan Company License CL-6521; WV Mortgage Lender License ML-23522; WI Mortgage Banker License 38349BA. Information is subject to change without notice. This is not an offer for extension of credit or a commitment to lend.

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