The Top 20 Questions

About First Time Home

Buyer Mortgages

Debby Stark Senior Mortgage Banker

NMLS # 747663 T: (217) 209-0512

C: (217) 430-3884

# 1 What is a Mortgage?

►A Loan/Lien on a Property

►The Promise to Pay

# 2 Are There Special Mortgages For

First-Time Homebuyers?

Many to

Choose From!

No Fico

FHA

Construction

VA 203(k)

# 3 What Steps Need To Be Taken To

Secure a Loan?

Complete a Loan Application

Provide the Following Documentation-

YTD Pay Stubs for the past 2-3 months

W-2 forms for the past 2 years (Tax Returns if self employed)

Information on long-term debts

Recent Bank Statements (Checkings, Savings, 401(k), Etc)

Tax Returns for the past 2 years

Proof of any other income

Address and Description of the property you wish to Purchase

Sales Contract

12 month Rental History

# 4 How are a Pre-Qualification and

a Pre-Approval Different?

Pre-Qualification – Is informal and can be done over the phone

► No Obligation

► No Paperwork

► Ball Park Figure

Pre-Approval A formal commitment to lend

► Lender collects items listed

in “How to Secure a Loan”

Slide

► Definite idea of what you

can afford

#5 What Is a Credit Score and How

Do Lenders Use Them?

# 6 How Can I Find Out Information

About My Credit Report?

You Will Receive a Copy with Your Application!

www.AnnualCreditReport.com

# 7 How Do I Choose The Best Loan

Program For Me?

Ask These Questions- ►How do you expect your finances to change over

the next few years?

►Are you planning to live in this home for a long

period of time?

►Are you comfortable with the idea of a changing

mortgage payment amount?

►When do you want to be “Mortgage Debt-Free”?

# 8 What Types of Loans Are Out There

and What Advantages Do They Have?

We’re

Experts in

Many

Programs!

FHA

Fixed Rate

203(k)

As one of the most

popular, FHA loans

are the most flexible

Do you want to know

EXACTLY how much

you pay every month?

Have your eyes set

on the “Fixer Upper”?

# 9 What Is “Locking In” a Rate?

►Guarantees Your Loans Interest Rate

►Interest Rates Fluctuate Everyday

►Should I Wait To Lock?

# 10 What Are Discount Points?

►Allows you to lower your interest

rate by paying extra

►Recommended if you plan to stay in

your home for awhile

►Tax Deductible on Home Purchase

#11 What is Included In Your Monthly

Mortgage Payment? Principal

Interest

Real

Estate

Taxes

Home-Owners

Insurance Mortgage

Insurance

# 12 Can I Use Gift Money?

Yes! The Donor

The Gift

Letter The Transfer

# 13 What is LTV and How Does it

Determine the Size of My Loan?

Loan-To-Value The amount of money you borrow compared to

the purchase price

Loan-To-Value = Mortgage Amount

Appraised Value of

the Property

# 14 What Is Private Mortgage

Insurance?

►Down-Payment Less Than 20%

► Provides ‘Default’

Insurance to the

Lender

► When Does It End?

# 15 What Makes Up Closing Costs?

►Attorney's or escrow fees

► Property taxes (to cover tax period to date)

►Interest (paid from date of closing to 30 days before first monthly payment)

►Loan Origination fee (covers lenders administrative cost)

►Recording fees

►Survey fee

► First premium of mortgage Insurance (if applicable)

►Title Insurance (yours and lender's)

►Loan discount points

►First 2-3 payments to escrow account for future real estate taxes and

insurance

►Paid receipt for homeowner's insurance policy (and fire and flood insurance if

applicable)

►Any documentation preparation fees

►Third Party Appraisal Fee

# 16 What Is an Escrow Account?

►Breaks Up Annual Tax and Insurance Costs into

monthly costs

►Prevents Tax Liens, Loss of Property and any lapse of

insurance coverage

►Two Month Minimum Balance

# 17 What Happens After I’ve Applied

For a Loan?

►How the loan process works- ► Loan Application

► Purchase Offer

► Acceptance

► Inspections

► Contract

► Approval

► Closing/Funding

► Moving In!

Provide requested documentation in a timely manner

# 18 What Responsibilities Do I Have

During The Lending Process?

I. You should not change jobs, become self-employed, or quit your

job.

II. You should not buy a vehicle or boat.

III. You should not use charge cards excessively or let your

accounts fall behind.

IV. You should not spend money you have set aside for closing.

V. You should not omit debts or liabilities from you loan

application.

VI. You should not buy furniture.

VII. You should not originate any inquiries into your credit.

VIII. You should not make any deposits or transfer money into your

checking and/or savings accounts without first checking with

your Mortgage Advisor.

IX. You should not change back accounts.

X. You should not co-sign a loan for anyone.

# 19 What Should I Look Out For

During The Final Walk-Through?

►Examine every corner of the

empty house

►Check Floor to Ceiling

►Be sure Seller fixed any

problems promised

►Make sure everything is

perfect Before you close

# 20 What Can I Expect To Happen

On Closing Day?

► Bring your Paid Home owners insurance

► Bring a Cashiers Check for money you owe for down-

payment and closing costs

► You will get proof of inspections and/or warranties

► Sign on the dotted line

► Mortgage Note

► Binding Sales Contract

► Keys to your new home

Enjoy Your New Home!

Thanks For Joining Me Today!

Call Me and Let’s Get Started!

Welcome To World Class Service!

LeaderOne Financial Corporation is an Illinois Residential Mortgage Licensee, MB 6760699. Corporate Headquarters: 11020 King Street, Suite 390; Overland Park, KS 66210, NMLS ID #12007 http://www.nmlsconsumeraccess.org

This advertisement does not constitute a loan approval or a loan commitment. Loan approval and/or loan commitment is subject to final underwriting review and approval.

Debby Stark NMLS# 747663

Senior Mortgage Banker

725 Hampshire St

Quincy, IL 62301

T: (217) 209-0512

C: (217) 430-3884

DebraStark@Leader1.com