© UFS

Homebuyer Education Seminar

Presented by MetLife Home Loans

All loans subject to approval. Certain restrictions may apply. Mortgage financing provided by MetLife Home Loans, a division of MetLife Bank, N.A. Equal Housing Lender. ©2008 METLIFE, INC. L10081698[exp1009][All States][DC]

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Are you ready to purchase a home?

Let MetLife Home Loans help put you on the path to home ownership.

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Overview

• The benefits of home ownership

• Preparing for your loan application

• Choosing a loan that’s right for you

• Home financing options for first-time homebuyers

During today’s homebuyer seminar, we’ll discuss:

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The benefits of home ownership

• Mortgage payments help you build equity in your home

• Renovations or changes to your property may increase the home’s value

• Home ownership may help you qualify for federal tax deductions

As a new home owner, you can start on the road to financial freedom:

*MetLife Home Loans does not provide tax advice. Please consult your tax advisor for more information.

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Are you ready to become a home owner?

• How much house can I afford

• How long am I going to stay in this home?

• Am I going to be able to comfortably make my mortgage payments?

• How much of a down payment can I provide?

• What additional housing costs should I consider?

Questions to ask yourself:

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Understanding your mortgage

1) Principal: The repayment of the original amount borrowed on a monthly basis.

2) Interest: The cost of borrowing the principal amount, repaid on a monthly basis.

3) Taxes: Real estate taxes paid to city and/or government agencies.

4) Insurance: Homeowners insurance for your property.

A mortgage consists of what is called “PITI”

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The Loan Process

Loan Application

AutomatedUnderwriting

Processing

Supporting Documents

Final Underwriting

Credit Report

Appraisal Title Work

Closing

Prequalification

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Preparing for your loan application

• W-2s and income tax returns (past 2 years)

• Copies of recent pay stubs

• Bank statements (past 2-3 months)

• Records of any child support or alimony

• Statements of any additional income (investments, Social Security, etc.)

Your Mortgage Consultant may request a variety of documents from you, including:

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Choosing a loan that’s right for you

• Work with an experienced loan professional

• Educate yourself about the mortgage process

• Know what you can afford comfortably

• Review a variety of options with your loan officer

• Think about what you plan to do with your home and how long you will be there

Selecting the right home financing option is important. Be sure to:

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Types of loans

Fixed-rate mortgages• Available in 10-, 15-, 20-, 25-, 30- and 40-year terms. • Principal and interest payments will never change during the loan’s term – helps you

make long-term budgeting plans.• If interest rates are low, these offer you an opportunity to lock in a lower rate.

Adjustable-rate mortgages (ARMs)• Loan’s initial interest rate will generally be lower than a fixed-rate loan.• After a period of time – usually 1 to 10 years – interest rate will adjust every 12 months,

according to market rates.• Rate adjustment may raise or lower your monthly payment.

Conventional Loans• A “traditional” mortgage, not directly insured by the Federal Government• Usually administered through FannieMae® or Freddie Mac.• New Higher Loan Limits* – Up to $729,750 in some areas per the Economic Stimulus Act

of 2008.

*Higher loan limits vary by area and are only available until 12/31/08.

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Types of loans

FHA Loans• Offer less stringent credit criteria and guidelines.• Lower interest rates may apply. • Low down payment options – 3% or less.• Insured by the Federal Housing Administration (FHA).

VA loans• Available for veterans who have served in the military, on active duty, or for

qualifying spouses of veterans.• 100% financing available up to $417,000 with no down payment.• Insured by the Veterans’ Administration (VA).• Lower interest rates, fees and down payment requirements.• Generally, the VA funding fee is added to the principal but not the monthly

payment.

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First-time homebuyer programs

What first-time buyer programs are available?

Many first-time buyer programs are developed and administered locally through your city, county or state.

As your local mortgage specialist, I can help you sort through the programs available and help you decided on one that is right for you.

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Quick Review

• How becoming a home owner benefits you

• The basic steps of the loan process

• How to prepare for your loan application

• Common loan types and how to choose a loan that fits your needs

• First-time homebuyer programs in our area

Today we’ve covered:

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Your questions

NameTitle

Street AddressCity, State, Zip

PhoneEmail

Website

I am always available for you…please consider me a resource for your home financing needs.

Brian Cavanaugh

Ask me about a FREE review of your home financing options.