1. Presented by David Zhang

2.  How many of you have experience about home mortgage?

3.  1. Understand the process of home mortgage as a Borrower  2. Understand the qualification for home mortgage  3. Be able to get married? (For someone?)

4. I am mean, so let’s offer: $250,000

5. Find a Bank, Credit Union, etc.

6.  1. Payment plan  2. Appraisal  3. Credit report  4. Title/ Insurance  5. Closing process(transfer/Taxes)  6. Payment to income  Time-consuming, about 60-90 days

7.  1. What is your payment plan?  Using fixed 30-year payment as example?  What rate will be applied? (60-90days)  “Lock the rate”: your choice

8.  2. How much can you get from a loan? Loan to Value(LTV): Usually 90% to 95% of the house value.  What is the value of the house: $250,000?  No! Have to appraise property($300- $500)

9.  3. What if the appraised value is lower than your offer($200,000 instead of $250,000)?  Renegotiate  Inspected: $300-$1,000 make sure “it is up to code”

10.  Credit report $25- $50 for a credit report

11.  1. Is the title clean? Is it stolen? Someone died there? Anything illegal in it?  On average, cost 0.4%-0.7% of the value This could be shared with seller

12.  1. Private mortgage insurance(PMI)  When borrowing over 80% of the value $10 per month  2. Insurance on house($300/month) for my fancy house?  3. Property taxes Could be shared with seller depending on the selling date.

13. Account Amount Total$250,000 First payment(10%)$25,000 Borrowing (LTV) (90%)$225,000 Monthly PMT fix 30yr (5% APR*)$1,208 Minimum required income (PMT*3)$3,625 Optional Escrow for Insurance$340 Income certificate will be required

14. AccountAmount First payment (10%)$25,000 Prepaid insurance$300 Loan application fee (1%)$2,250 Other insuranceUnknown Property taxes sharedUnknown Total$35,000 $35,000, well I will have this much money very soon if I don’t have to eat anything to be alive.………..

15.  1. Payment plan  2. Appraisal for the house  3. Title & Insurance  4. Payment to Income  5. Money  6. Money  7. Money  8………………..still money

16. Thank you!