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

2. 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

3. 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.

4. 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.

5. 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

6. 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.

7. 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)

8. 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

9. 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.

10. 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

11. 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.

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