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Equal Housing OpportunityEqual Housing Opportunity © Silver State © Silver State

Trainers Inc 2007Trainers Inc 2007

PREQUALIFICATIONPREQUALIFICATION As a service for you, after this As a service for you, after this

presentation we will have loan presentation we will have loan originators available for you to originators available for you to discuss your homeownership discuss your homeownership goals.goals.

You may also set an appointment You may also set an appointment to review your credit and start the to review your credit and start the prequalification process in private.prequalification process in private.

Prequalification is risk freePrequalification is risk free no money is requiredno money is required no obligation to complete the transactionno obligation to complete the transaction

PREQUALIFICATIONPREQUALIFICATION All our mortgage loan All our mortgage loan

originators are professionals originators are professionals and will keep all your and will keep all your information confidential.information confidential.

We will try to answer all your We will try to answer all your questions.questions.

We are here to serve your We are here to serve your home buying goals.home buying goals.

QUALIFICATIONQUALIFICATIONQualification means a mortgage Qualification means a mortgage

professional will review your three professional will review your three ‘C’s of lending‘C’s of lending

CapacityCapacity Do you have sufficient funds to close the Do you have sufficient funds to close the

loan?loan? Do you have sufficient income to support Do you have sufficient income to support

the loan?the loan? CharacterCharacter

How do you handle your creditors?How do you handle your creditors? CollateralCollateral

Does the property meet the program Does the property meet the program requirements?requirements?

DOES BAD CREDIT = NO DOES BAD CREDIT = NO LOAN?LOAN?

NOT TRUE!NOT TRUE!With the current mortgage industry there are many loan programs available to meet

all types of borrower’s situations. If for some reason you are not able to meet

the loan requirements, the mortgage professional will inform you what it may take for you to meet these requirements

in the future.

You should find out where you stand in the lender’s eyes.

QUESTIONS & ANSWER QUESTIONS & ANSWER TIMETIME

There is no such thing as a stupid question Our mortgage professionals are here to help

you Private consultations are available JUST ASK!

APPLICATION PROCESSAPPLICATION PROCESS Loan originator interviews the borrower Loan originator interviews the borrower

and completes loan application.and completes loan application. Loan disclosures are signedLoan disclosures are signed Loan originator gives the borrower a Loan originator gives the borrower a

complete Good Faith Estimate (GFE) complete Good Faith Estimate (GFE) Borrower supplies:Borrower supplies:

at least 3 months bank statementsat least 3 months bank statements Social security cardSocial security card Photo ID/Green cardPhoto ID/Green card Addresses for last 24 monthsAddresses for last 24 months

LOAN PROGRAMSLOAN PROGRAMS

Loan originator will Loan originator will review your mortgage review your mortgage program options program options

Some will allow you Some will allow you to have little or no to have little or no income income documentationdocumentation

Some allow not so Some allow not so perfect credit; perfect credit; charge offs and charge offs and collections not collections not required to be paid required to be paid offoff

LOAN PROGRAMSLOAN PROGRAMS Terminology can be confusingTerminology can be confusing

““What are my closing costs?” Does not What are my closing costs?” Does not mean mean

““What is the total amount of funds What is the total amount of funds needed to close on the house?”needed to close on the house?”

There are closing costs and prepaids There are closing costs and prepaids disclosed on GFE, down payment, and disclosed on GFE, down payment, and maybe reserves required.maybe reserves required.

Most lenders require you escrow for real Most lenders require you escrow for real estate taxes and insurance – these are estate taxes and insurance – these are called pre-paids.called pre-paids.

YOUR CREDITYOUR CREDIT

Loan originator will review a Loan originator will review a Tri-merge credit report Tri-merge credit report

You may obtain credit report direct You may obtain credit report direct from credit reporting agency from credit reporting agency

New FACTA requires the bureaus to New FACTA requires the bureaus to give the consumer one free credit give the consumer one free credit report a year (credit score costs)report a year (credit score costs)

www.annualcreditreport.comThree main bureausThree main bureaus

TransunionTransunionEquifaxEquifax

ExperianExperian

CREDIT SCORESCREDIT SCORES

Caution Caution – Inquiries lower your – Inquiries lower your credit credit score!score!

Shopping mortgage lenders or Shopping mortgage lenders or loan loan originators can lower originators can lower your scoreyour score

Shopping for any type of credit Shopping for any type of credit will will lower scorelower score

Try not to use your credit while Try not to use your credit while in in home buying processhome buying process

TYPES OF CREDITTYPES OF CREDIT

No credit activity No credit activity may cause no may cause no credit scores to credit scores to generategenerate

Alternative credit – Alternative credit – letters of creditletters of credit

Trade lines from Trade lines from creditors need to creditors need to be reported to be reported to credit bureaucredit bureau

Fannie Mae Fannie Mae requires 4-5 trade requires 4-5 trade lines open 12 –24 lines open 12 –24 months months

QUESTIONS & ANSWER QUESTIONS & ANSWER TIMETIME

There is no such thing as a stupid question Our mortgage professionals are here to help

you Private consultations are available JUST ASK!

CHOOSING THE RIGHT CHOOSING THE RIGHT LOAN PROGRAMLOAN PROGRAM

The Loan Originator will:

Review all the loan programs available – there are many

Ensure you are getting the best choice of loan products

Meet your home ownership goals

And make it all seem easy!

LOAN PROCESSINGLOAN PROCESSING Processing is a Processing is a

procedure that verifies procedure that verifies and gathers all and gathers all documentation documentation necessary for the necessary for the underwriter’s reviewunderwriter’s review

Processor will verify and Processor will verify and update the initial update the initial application and application and organize the supporting organize the supporting documentation supplied documentation supplied by the borrower.by the borrower.

UNDERWRITINGUNDERWRITING

Underwriting is the decision-making Underwriting is the decision-making stage in mortgage cyclestage in mortgage cycle

3 “c”s – critical areas analyzed:3 “c”s – critical areas analyzed:

-- CapacityCapacity

-- CharacterCharacter

-- CollateralCollateral

CLOSING AND FUNDINGCLOSING AND FUNDING What questions can What questions can

be asked at closing?be asked at closing? Not many – Escrow Not many – Escrow

officers can help you officers can help you with questions about with questions about when is the first loan when is the first loan payment, your payment, your property’s title property’s title Issues, payment Issues, payment period for Real period for Real estate taxes, and estate taxes, and best ways to hold best ways to hold title to propertytitle to property

CLOSING AND FUNDINGCLOSING AND FUNDING Your loan originator Your loan originator

should have should have explained what type explained what type of loan program of loan program you’re getting, how you’re getting, how the loan program the loan program works, monthly works, monthly payment, interest payment, interest rate, pre-payment rate, pre-payment penalties, mortgage penalties, mortgage insurance, etc.insurance, etc.

QUESTIONS & ANSWER QUESTIONS & ANSWER TIMETIME

There is no such thing as a stupid question Our mortgage professionals are here to help

you Private consultations are available JUST ASK!