““Crash Course”Crash Course”

Patrick BrockMortgage Loan Officer

Bank of America Home Loans626-253-3944 (cell)

patrick.brock@bankofamerica.com

Patrick BrockMortgage Loan Officer

Bank of America Home Loans626-253-3944 (cell)

patrick.brock@bankofamerica.com

* Preapproval* Preapproval* Documents and Information Needed* Documents and Information Needed* What You Will Need* What You Will Need* Investment Purchases* Investment Purchases* 203K (Rehabilitation Loan)* 203K (Rehabilitation Loan)

November 6, 2010

PREAPPROVALPREAPPROVAL

PreapprovalPreapproval

Why should you get preapproved for a Why should you get preapproved for a mortgage before you begin your search for a mortgage before you begin your search for a

home? home?

Why should you get preapproved for a Why should you get preapproved for a mortgage before you begin your search for a mortgage before you begin your search for a

home? home?

Because there are 3 people who will benefit Because there are 3 people who will benefit from that preapproval:from that preapproval:

Because there are 3 people who will benefit Because there are 3 people who will benefit from that preapproval:from that preapproval:

YOU! The BuyerYOU! The BuyerYOU! The BuyerYOU! The Buyer

Your AgentYour AgentYour AgentYour Agent

The SellerThe SellerThe SellerThe Seller

Benefit To…Benefit To…YOU! The BuyerYOU! The BuyerYOU! The BuyerYOU! The Buyer

"Please let me know how much house I can afford." "Please let me know how much house I can afford."

There are simply too many variables to answer that question:There are simply too many variables to answer that question:credit history credit history

income income debtdebt

special mortgage programsspecial mortgage programsetc.etc.

"Please let me know how much house I can afford." "Please let me know how much house I can afford."

There are simply too many variables to answer that question:There are simply too many variables to answer that question:credit history credit history

income income debtdebt

special mortgage programsspecial mortgage programsetc.etc.

Benefit To…Benefit To…

Your AgentYour AgentYour AgentYour Agent

By knowing what the financial parameters are, your By knowing what the financial parameters are, your agent can spend more time looking for houses that agent can spend more time looking for houses that

"fit.""fit."

Sound Good?Sound Good?

By knowing what the financial parameters are, your By knowing what the financial parameters are, your agent can spend more time looking for houses that agent can spend more time looking for houses that

"fit.""fit."

Sound Good?Sound Good?

Benefit To…Benefit To…

The SellerThe SellerThe SellerThe Seller

A PREAPPROVED offer will definitely stand out! A PREAPPROVED offer will definitely stand out!

When it comes to a seller evaluating offers, "a bird in the hand..." When it comes to a seller evaluating offers, "a bird in the hand..." definitely applies. definitely applies.

Simply put: it is better to stick with something you already have, Simply put: it is better to stick with something you already have, rather than pursuing something you may never get. rather than pursuing something you may never get.

A PREAPPROVED offer will definitely stand out! A PREAPPROVED offer will definitely stand out!

When it comes to a seller evaluating offers, "a bird in the hand..." When it comes to a seller evaluating offers, "a bird in the hand..." definitely applies. definitely applies.

Simply put: it is better to stick with something you already have, Simply put: it is better to stick with something you already have, rather than pursuing something you may never get. rather than pursuing something you may never get.

DOCUMENTS DOCUMENTS NEEDEDNEEDED

for preapprovalfor preapproval

Documents and Information NeededDocuments and Information Needed• Full name of person(s) applying for the home loan

• Date of birth(s)

• Current mailing address for the past 2 years. If renting, what is monthly rent?

• Name of employer, local address, local phone number, position/type of industry, years at employment (if less than 2 yrs with current need previous as well)

• Most recent one (1) month consecutive pay stubs showing current & year to date income

• W2’s for the last two (2) years

• Past two (2) years Federal Tax Returns, all schedules

• Two (2) most recent month’s statements for all checking/savings/401k/CDs, stocks and bonds, etc. (all pages)

• List of all other owned properties appearing on your credit report (if any), including rent amounts and landlord contact information, etc.

• If Condominium, full insurance policy issued by your Home Owner’s Association (HOA)

INVESTMENT PROPERTY – SAME LIST

203K LOAN:203K LOAN:rehabilitation/improvementrehabilitation/improvement

The 203(k) Loan is a program for rehabilitating and repairing single-

family properties.

A 203k mortgage can be used to accomplish rehabilitation and/or

improvement of an existing one-to-four unit property in one of three

ways:

#1#1

Purchase a property and the land on which the property is located

and rehabilitate it.

#2#2

Purchase a property on another site, move it onto a new

foundation on the mortgaged land and rehabilitate it.

#3#3

Refinance existing indebtedness and rehabilitate a qualifying

property.

Minimum loan amountMinimum loan amount

A minimum requirement of $5,000 worth of eligible repairs/

improvements. Up to 100% of the loan amount may go towards

rehabilitation.

Mortgage Insurance (UFMIP)Mortgage Insurance (UFMIP)

1.0%, and must be 100% financed into the mortgage or paid entirely in cash

—the premium may not be partially

financed.

Purchase: A minimum FICO Score of 620 is required.

Refinances: A minimum FICO Score of 640 is required.

Owner Occupied only___________________________

FICO Scores:FICO Scores:

* Purchase (construction-permanent loans are not eligible.)

* Refinance - Rate and Term (No Cash-Out)

Purpose types:Purpose types:

< $50,000 = 98.75%

$50,001- $125,000 = 97.65%

> $125,000 = 97.15%

Maximum Loan-To-Value:Maximum Loan-To-Value:

Thanks For The Opportunity!Thanks For The Opportunity!

Please let me know how I can help.Please let me know how I can help.