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.– 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

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

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

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

• 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

• 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

• 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

• 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

• 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

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-xxxxxxxx@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.