1. Wenchen Wang

2. 1.The process of mortgage 2.The costs may occur during mortgage process

3. 1. Find a house 2. Sign in application 3. You get money Absolutely not!

4. 1. Preapproval letters 2. House hunt 3. Find a lender &Applying for the Loan 4. Mortgage Origination and Processing 5. The Underwriting Process & Conditions to Approval 6. Closing 7. 7. Mortgage payment

5.  What’ preapproval letter ?  Ballpark figure  Why preapproval letter?  Avoid awkward situation  realtor take pre-approved customers more serious.

6.  Shop around  Prepare your financial biography - W2 statements (or 1099 income statements) for the last two years -Federal tax returns for the last two years -Bank statements for the last few months -Recent pay stubs and proof of other income -Proof of investment income  not obligated to one lender  expiration dates - usually 90 days

7. ENVIRONMENT HOUSE PLAN

8.  Once you and the seller have signed a mutually acceptable purchase agreement, your agent will collect your earnest money check and deposit it in an escrow account.  Cost: title search cost and inspection cost

9.  Qualify your loan and get your own interest rate 1. Payment to Income （ PTI ） 2. Loan to Value （ LTV ） 3. Types of interest rate 4. Down payment If less than 20%, need to buy PMI 5. Credit score Credit score 6. Property: age and type, location, claim, history, etc. 7. Lenders

10. LOAN APPLICATIONPREAPPROVAL  Photo I.D.  Last two pay stubs  Proof of other income  Last two tax returns  Employment history (two years), including addresses and contact information  Previous lenders or landlords (past two years)  Your monthly household budget (for your reference)  All debts  All savings  Other assets (life insurance, property, etc.)  Source of downpayment W2 statements (or 1099 income statements) for the last two years Federal tax returns for the last two years Bank statements for the last few months Recent pay stubs and proof of other income Proof of investment income

11.  Origination is lenders jargon, which means creation. Lender start process the loan.  Collect and organize your information as a processor.  Origination fee, usually it is 1% of the loan but negotiable.

12.  Determine if you represent an acceptable level of risk for the lender.  Condition to approval: like a task list of borrower

13.  Closing is the final step in the mortgage process  Ton of paperwork need to sign  Its also a collective cost list (3%-5%)

14. 1. Attorney fees 2. Title service cost 3. Recording fee 4. Origination fee 5. Survey fee 6. Brokerage commission 7. Mortgage application fee 8. Appraisal fee 9. Inspection fee 10. Insurance fee 11. Tax

15.  Escrow account include P&I payment insurance payment property tax

16.  http://www.smartmoney.com/spend/real-estate/7-tips-for-getting-a-preapproved-mortgage/ http://www.smartmoney.com/spend/real-estate/7-tips-for-getting-a-preapproved-mortgage/  about Preapproval  http://www.bestmortgage.com/10mistakes.html http://www.bestmortgage.com/10mistakes.html  10 mistakes often  http://en.wikipedia.org/wiki/Closing_costs http://en.wikipedia.org/wiki/Closing_costs  closing cost  http://www.bankrate.com/finance/financial-literacy/how-credit-scores-affect-mortgage-rates-1.aspx http://www.bankrate.com/finance/financial-literacy/how-credit-scores-affect-mortgage-rates-1.aspx  FICO score  and the example of how terms, credit score and other factors affect the inters=st rate  http://www.zillow.com/mortgage/help/Mortgage-Fees-And-Closing-Costs.htm http://www.zillow.com/mortgage/help/Mortgage-Fees-And-Closing-Costs.htm  closing cost is totally another cost comparing with mortgage cost and this one is more specific than the one in wiki.  http://en.wikipedia.org/wiki/Credit_score_in_the_United_States http://en.wikipedia.org/wiki/Credit_score_in_the_United_States  how the FICO score forms and the weight of this score  http://www.reuters.com/article/2013/02/04/us-mortgages-smalllenders-idUSBRE91304920130204 http://www.reuters.com/article/2013/02/04/us-mortgages-smalllenders-idUSBRE91304920130204  small lender ride over the big lender  http://www.wjbradley.com/MortgageExecutive%202012%20Top%20Company.pdf?page=16 http://www.wjbradley.com/MortgageExecutive%202012%20Top%20Company.pdf?page=16  top 100 mortgage companies  https://app.guaranteedrate.com/mortgageapp https://app.guaranteedrate.com/mortgageapp  the top 1 mortgage company of 2012. good example and if interested

17.  http://en.wikipedia.org/wiki/Escrow http://en.wikipedia.org/wiki/Escrow  Escrow is an account separate from the mortgage account where deposit of funds occurs for payment of certain conditions that apply to the mortgage, usually property taxes and insurance. The escrow agent has the duty to properly account for the escrow funds and ensure that usage of funds is explicitly for the purpose intended.  http://homeguides.sfgate.com/average-cost-homeowners-insurance-3020.html http://homeguides.sfgate.com/average-cost-homeowners-insurance-3020.html  According to the U.S. Department of Housing and Urban Development, a lender often requires that a homeowners insurance policy be in place before finalizing a mortgage settlement. Many factors influence the total annual cost of this insurance, including the extent of the coverage and the location of the property.  According to the Federal Reserve Bureau, the average cost of an annual premium for homeowners insurance is between $300 and $1,000.  While annual premiums are typically paid in monthly installments, some lenders might require a homeowner to pay the first year's annual premium in full before completing a mortgage settlement, says the U.S. Department of Housing and Urban Development.  http://yourhoustonhomeinspector.com/for-the-buyer/financial-knowledge/ihow-appraisal-effect-mortgage/ http://yourhoustonhomeinspector.com/for-the-buyer/financial-knowledge/ihow-appraisal-effect-mortgage/  How appraised value affect your mortgage?  https://www.alliancepro.biz/loan_app_process.php https://www.alliancepro.biz/loan_app_process.php  LOAN process  http://www.realestateabc.com/loanguide/mortgage.htm http://www.realestateabc.com/loanguide/mortgage.htm  Where Does the Money Come From for Mortgage Loans?  http://www.homeloanlearningcenter.com/Howdoyou/Step1SeeaLender.htm http://www.homeloanlearningcenter.com/Howdoyou/Step1SeeaLender.htm  7 steps of mortgage