Buying a Home in Todays Market Wells Fargo Home Mtg. Encino CA. 10/30/2012

1 Homeownership Works! thats still true today! Homeownership may be the single most important investment youll make in your lifetime.

2 Building Long-term Financial Security A home is an investment in personal and financial well-being Homeownership isnt a get-rich quick scheme -- its a sure and steady way to build wealth over time Its critical to get the financing right Thats why you should work with Wells Fargo

3 Interest paid on mortgages is deductible for most homeowners. Property taxes are deductible for most homeowners. For most homeowners, there are no capital gains taxes when a primary residence is sold. *See your tax advisor And add to that... significant tax advantages* for homeownership

4 Compare Apples to Apples Every interest rate is associated with a point amount – zero, a half-point, a full point, etc. When comparing rates, get the whole story -- Compare rates with the same number of points charged.

5 Get pre-approved for your loan first – before house-hunting This determines the upper limit of your price range Borrow only as much as you feel comfortable borrowing

6 What is the term of the loan? What is the interest rate? Is the rate fixed or adjustable? When are the payments due? What happens if I make a late payment? Are taxes and insurance included in my monthly payment? What will my closing costs be? Whats included? Wells Fargo will work with you to ensure you understand the answers to these questions. Questions to ask

Key Qualifying Components Credit Income Assets 7

Credit Normally good for 120 days. 3 Bureaus – 3 Scores Scores range from Score based on many things Payment history Length of credit history Newly established credit Outstanding revolving balances Inquiries 8

Credit Helpful Tips Revolving balances below 50% of the available limit. Bankruptcies need to be at least 2- 4 years past the discharge date. Limit unnecessary inquiries. 9

Income Documentation 1 month of paystubs 2 most recent w-2s Salary or Hourly? Commission or Bonuses? Self-Employed? 2 Years Personal and Business returns 10

Income New job may require additional documentation. Written VOE Job Offer Letter Gaps in employment? Declining or inconsistent income? 11

Assets 2 Months of bank statements. All pages Large deposits? Insufficient funds/bad checks? 12

Assets Use of non-liquid accounts Retirement accounts Stocks Need terms of withdrawal or proof of liquidation of funds. Gifts. 13

Down-payment Assistance Programs - DAPS Neighborhood Lift – up to $30k NHS Platinum – 3% CALHFA – 3% LIPA – up to $60k. 14

15 Thank you for attending! Were happy to answer your questions... Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. © 2010 Wells Fargo Bank, N.A. All rights reserved.