Home Buyers seminar NMLS xxxxxx Brought to you by NMLS #129386

Mary Jane Dewey-Canfield NMLS 38304 Branch Manager Mortgage 1 Inc. June 2011 – Present Cadillac, MI. Serving the entire state of Michigan, providing mortgages for primary residences, investment properties and second homes. I offer many types of programs; Conventional $0 down USDA Loans FHA MSHDA Home-path FHA 203K and many more. Central Michigan University MSA studies , Marketing/Marketing Management, General Delta Zeta Sorority CMU Alumni Association

The home Buying Process Starts with a credit Report. There are 3 Consumer Repositories they collect all of the payment history and send it to FICO . FICO then creates a Credit Score that is unique to the mortgage industry.

Credit Score Basics Pay bills on time. Don’t apply for new credit during the mortgage process! Reactivate old dormant credit card accounts that are in good standing.

As Credit card unitization goes down, your credit score will improve. ^100% 90% 89% 80% 79% 70% 69% 60% 59% 50% 49% 40% 39% 30% 29% The Best Utilization Ratio is 5% to 9% 20% 19% ^100% Anytime you are over your credit limit it is Just like having a collection on your credit report. 49% is where you start to see more improvement 30% is what everyone tells you to keep your balances below but 5-9% is best. This is a great way to quickly improve your credit score safely

When to pay collections Today Collection Reporting Date I want a loan…. Twelve Months Ago Nine Months Ago Six Months ago One Month ago One Month From Now Six Months From Now Nine Months From Now Twelve Months From Now Paying a collection should never be used as a short term strategy to improve your FICO5 credit score.

Documentation Required 30 days worth of current paystubs for all borrowers Last Two Years W2’s Last Two Years Tax Returns w/all schedules –personnel & business returns, signed on pg. 2 Valid Driver’s License or State ID – Not expired Most recent 2 months bank statements for checking & savings, all pages numbered, even blank If previous Bankruptcy - Copy of Bankruptcy filing along with discharge filing If child support applies - Copy of Divorce Decree, Court order & payment history If you currently own property-provide copy of current mortgage statement, summer & winter tax bill, & Homeowners Insurance policy Gift letter & gift paper trail per instructions Twelve months worth of cancelled rent checks (if applicable) Fully executed Purchase Agreement VA Loans - provide DD214   Refinance Copy of mortgage statement(s) Copy of homeowners Insurance Copy of the most recent 2 tax bills (summer and winter)

7 keys to a perfect mortgage Inspection Underwriting Verification Appraisal Title Search and Insurance Flood Certification Survey Closing Inspection _ talk about the importance of a home inspection Underwriting Verification – Talk about all the things that need to be verified Appraisal – talk about the appraisal process Title Search and Insurance - talk about the dangers of not having a clear title to a property Flood Certification – talk about flood zones and other things Survey – Talk about how we need to know where the boundaries are for the property Closing - what to expect at the closing

Prequalified or Preapproved? Pre-qualification process is informal. Becoming Prequalified is based on unverified information you provide about your assets, income and liabilities, the lender will roughly estimate how much money you can borrow. The lender will not formally agree to approve the mortgage for the amount you are pre-qualified to borrow. It just gives the borrower a general idea about how much money lenders are willing to provide them. The pre-approval process is more formal. With pre-approval, the lender checks your credit, verifies your financial and employment information and confirms your ability to qualify for a mortgage. Pre-approval strengthens your position to make an offer when you find a property that you like - sellers are generally more willing to accept offers from pre-approved buyers, who have already shown that they can actually afford to purchase the house.

Private Mortgage Insurance Private mortgage insurance is usually required if the borrower has less than 20% down into the transaction. Private mortgage insurance protects the lender in case the borrower defaults. It is paid by the borrower. This allowed more borrowers to get into homes sooner than it would take to save large down payments.   Private mortgage insurance is usually paid monthly along with the monthly principle and interest payment. Private mortgage insurance is NOT life insurance, job lose insurance or homeowners insurance. This insurance protects the lender not the borrower. As well it is typically not tax deductible. PMI 80% Loan

Great 1st home buyer Programs Down Payment Assistance up to $7,500. Available to first-time homebuyers (have not owned a home in the previous three years) statewide and repeat homebuyers in targeted areas. Rural Housing program is dedicated to the preservation of rural communities. This program, features 102% financing for qualified moderate-income families looking to purchase single-family homes The VA Government Loan This mortgage loan program to help veterans and their families obtain home financing Lower payments, easier to qualify no down payment great for first time buyers Talk about the Program don’t read the text… The FHA Government Loan is insured by the Federal Housing Administration open to all qualified home purchasers. An FHA loan is a loan insured against default by the FHA.

Thank You! Home Buyers seminar Brought to you by NMLS #129386 NMLS xxxxx Brought to you by Thank You! NMLS #129386