Homebuyer Guide
Prepared by Prepared for
GAVIN PRESCOTT
SAMI MENESES
IntroducingGavinScott, FinanceManager
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Gavin Scott Senior Finance Manager
NMLS #0123456
000-123-4567
gscott@rmaloans.com
Ownahome sooner,work withme.
Roadto Homeownership
Step 1 | Get Pre-Approved
Gettingpre-approvedmeansyou'vealreadytakentheimportantstepofconsultingwithalenderandarereadytomove forward.Itshowssellersyou’reseriousandcangiveyouasignificantedgeinacompetitivemarket.
WhyBuyingBeatsRenting
•UnlockTaxBenefits Potentialdeductionsthatputmoneybackinyourpocket
•StartBuildingEquity Rentpaymentsgonowhere,butyourmortgagehelpsyouinvestinyourfuture
•PrideofOwnership Createahomethatreflectswhoyouare,notjustwhereyoulive
•Stability&Security Saygoodbyetorisingrentpricesanduncertainleaseterms
•It’sYourSpace Fromcustomizingthewallstochoosingtheperfectpet-friendlybackyard,everydecisionisyourstomake!
Step 2 | Find Your Dream Home
Workwithyouragenttoclearlydefineyourwantsandneeds Startyoursearch3-6monthsaheadofwhenyouplanto buy Youragentwillhelpyoubalanceyourexpectationswithrealitytofindthebestfit
KeepTheseFactorsinMind:
•Cosmeticvs.Structural Knowthedifferencebetweenminorrepairsandmajorrenovations.
•NeighborhoodSafety Understandlocalcrimeratesandcommunitysafety
•SchoolQuality Researchthearea’sschoolstoensureyourfamily’sfuturesuccess
•PropertyTaxes Stayinformedabouttaxratesandtheirimpactonyourbudget
•Convenience Considerthehome’sproximitytohighwaysandpublictransportationforeasycommutes
Step 3 | Make an Offer
Onceyou’vefoundyourdreamhome,it’stimetomakeanoffer!Workwithyouragenttonegotiatethepriceandschedule ahomeinspectiontoconfirmeverythingisinworkingorder
Here’swhattoexpect:
•PricingInsights Youragentwillhelpyouunderstandthemarketandfightforafairpricebasedoncomparablesalesinthe neighborhood
•HomeInspection Athoroughinspectionwillhelpuncoveranyhiddenissueswiththefoundation,plumbing,heating,cooling,and electricalsystems
•RequestingInclusions Ifyou'dlikeappliancesorotheritemsincludedinthesale,besuretoclearlylisttheminthecontract
Step 4 | Finalize Financials, Lock Your Rate & Complete Underwriting & Appraisal
Onceyourofferisaccepted,it’stimetoprovideyourlenderwithanyremainingfinancialdocumentsneededtofinalize yourloan Thisisalsowhenyou’lllockinyourinterestrate,securingituntilclosingandprotectingyourselffrompotential ratefluctuations
Atthesametime,theunderwritingandappraisalprocessbegins Thisensuresyourloanissoundandthatyou'renot overpayingforthehome
Here’showitworks:
InitialReview Theunderwriterwillreviewyourapplication,credit,andcollateralwithin48hours.
ClearingConditions Ifanyadditionaldocumentsordetailsareneeded,we’llworkwithyoutoclearthesewithin2days FinalReview Afterallconditionsarecleared,theloanwillundergoafinalreviewbytheunderwriter,whowillissuea“Clearto Close”(CTC).
ClosingConfirmation Theprocessorwillconfirmthattheloanisclearedtocloseandnotifyallpartiesofthescheduledclosing dateandtime
Thiscombinedstepensuresthatyourloanisontrackandthatyou’relockedinwiththebesttermsasyoumovetowardsclosing.
Step 5 | Closing – The Big Day is Here!
It’stimetocelebrate!Onceallthepaperworkissigned,you’llofficiallyreceivethekeystoyournewhome
Besuretoarriveprepared:
•ReviewtheFinalDocuments Double-checkyourloanamountandinterestratebeforesigning
•BringaCashier’sCheck Thiswillcoveryourclosingcostsanddownpayment
•HaveYourIDReady BringaphotoIDand,ifnecessary,yourSocialSecuritycardtoverifyyouridentity
Whatdo youwant fromyour mortgage?
This list will give you a general idea of the home loan that might be right for you. We’ll work with you to make the final decision on a program that will meet your needs and fit your financial situation.
HomeBuyerTips
These 5 tips will help you stay financially prepared, improve your chances of mortgage approval, and make the home-buying process smoother.
Avoid New Debt and Financial Changes
Why: New debt or job changes can affect your debt-to-income ratio and complicate your approval
Suggestion: Stay debt-free, maintain stable employment, and avoid major financial moves leading up to your home purchase
Keep Credit Stable and Transactions Transparent
Why: Opening new credit accounts or large withdrawals can hurt your credit score and raise red flags.
Suggestion: Maintain steady credit usage and ensure any large deposits are well-documented.
Save for a Larger Down Payment and Closing Costs
Why: A bigger down payment reduces your loan balance and may help you avoid PMI Closing costs can add 2-5% of the purchase price
Suggestion: Save as much as possible for your down payment and closing expenses
Keep Financial Documents Up-to-Date
Why: Outdated documents can delay approval
Suggestion: Stay organized and ensure your income, tax, and bank statements are current
Be Honest and Transparent with Your Lender
Why: Full disclosure ensures smooth approval and avoids delays. Suggestion: Be upfront about your finances income, debts, and assets.
BenefitsofOwning aHome
Something along the lines of: The key benefits of homeownership provide both financial and personal rewards, making it a major milestone in building wealth and stability.
Stability and Control
Building Equity
Potential for Appreciation
Tax Advantages
Owning your home provides long-term stability, shielding you from rent increases and offering the freedom to make changes to the property.
Homeownership allows you to build equity over time as you pay down your mortgage unlike renting, where your monthly payments don’t contribute to ownership
Homeowners can often deduct mortgage interest and property taxes, potentially lowering overall tax liability
Over time, the value of your home may increase, providing a profitable return on your investment if you decide to sell
Personalization and Freedom
Homeownership gives you the ability to make changes and improvements to suit your lifestyle without needing a landlord’s approval.
LoanPrograms
Conventional Fixed Rate Mortgage
A conventional fixed-rate mortgage can be assured with loan terms of up to 30 years. A minimum of 3% down payment is required payment is required for first time home buyers seeking to purchase a primary residence. If you have had ownership interest in a property in the past 3 years the minimum borrower contribution on a primary residence is 5%. Borrowers can finance up to $803,500 for a one-unit property, while loan maximums are higher for two- to four-family properties and for properties located in high-cost areas
FHA Loans
It is common misconception that an FHA loan is strictly for the first time home buyers An FHA loan is one of the easiest loans to qualify for especially if you lack funds to qualify for a conventional mortgage, have faced less that the perfect credit. These government insured loans will allow for more risk thereby making the qualification standards less stringent than conventional financing Now there are even FHA programs available for borrowers who have experienced and economic event and can document that certain negative credit ratings were a result of the loss of household income of 20% or more over a period of six months more. This program allows for qualified borrowers who receive homeownership counseling the opportunity to purchase a home again one year after a short sale, foreclosure or bankruptcy
Foreign National Loans
We offer many foreign national programs and the requirements differ for each program depending on the loan size, geographic location of the property and country of origin.
Adjustable Rate Mortgage
An adjustable rate mortgage or ARM, allows you to capitalize on today’s low interest rates ARM programs may be amortized up to 30 years and have initial fixed loan terms of 5 -7 or 10 years After the initial fixed rate period the interest rate may increase or decrease by up to 2% annually and is capped at 5% over the initial rate over the life of the loan.
Reverse Mortgage
A reverse mortgage is a loan against the equity in the home that provides tax-free cash advances but requires no payments during the term of the loan Since there are no monthly payments during the life of a loan, the balance grows larger and the equity gets smaller A reverse mortgage can be done as a refinance or as a purchase as long as the home is the borrower’s primary residence. The loan is due and payable when the borrower no longer occupies the property as the primary residence. The only requirement for this loan is you must be at 62 years old There are no income or credit requirements This is a great loan for a senior home buyer looking to make a cash purchase Let me show you how to use a reverse mortgage as an investment strategy
LoanProcess
Pre-approval
InitialmeetingwithLoanOfficer
Borrowercompletesloanapplication
Borrowerprovidessupportingdocuments
Thecreditreport ispulledandreviewed
Incomeiscalculated
LoanOfficersreviewfileswithborrower
LoanOfficersissuesPre-Approvalletter
EscrowisOpened
Initialdisclosuresentto borrower Appraisalordered
1 2 3 4 5 6 7
Refinancing?StartHere
Pre-approvalisissued
Loanapplicationcompleted
Borrowersprovidessupporting documents
Creditreportispulledand reviewed
Incomeiscalculated
LoanProcessing
Borrowerdiscussesratelock/floatoptions
Titleworkorderedandsenttotitle company
Verificationofemploymentcompleted HomeownersInsurancePolicyforsubject propertyobtained
LoanOfficersreviewsfilewithborrower
Underwriting
Borrowerevaluated
Loanfileandresidential appraisalreviewed Underwritingdecisionmade
LoanApproval
Theunderwriterissuesconditionalapproval
Additionalitemswererequestedtoclear thefile’sconditionsforclosing
Clear-to-Close!
Conditionsarecleared
Underwritingdeterminesthat thefileisreadyforClosing Documents
ClosingDocumentsare orderedandsenttoEScrow Escrowcoordinatessigning withanotary
Funding
LoandocumentationsignedbytheBorrower Requiredfundsaredeliveredtoescrow company
Purchase-WElcometoyournewhome! Refinance-Congratsonyourrefinance!
LoanProducts
We offer Non-QM loans for borrowers with unique financial situations, including self-employed individuals, non-traditional income sources, and unique properties.
These flexible options help your clients achieve homeownership, even if they don’t fit the conventional mold.
LoanAmounts:$500k-$30M
BridgeLoans
CrossCollateralization
BankStatementLoans(over$3M)
DSCR/InvestorCashFlowLoans
HardMoneyLoans
Condo-tels
Non-WarrantableCondos
FlexibleRSUIncomeUnderwriting
1099Only/P&LProgram
InterestOnlyLoans
VestinginEntities(LLCs, Partnerships,S-Corps)
ForeignNationalLoans
CommercialLoans:Upto$275M!
ReverseMortgage
VALoans
HomeEquityProducts& CommercialLending
Jumbo and Super Jumbo Portfolio Loans
Weoffer manyjumboloanprogramsforall typesofborrowersandcreditprofiles
LoanAmountsupto30M
ForeignCorporations
BankStatementPrograms
Other LoanPrograms
Weoffer manyjumboloanprogramsfor alltypesofborrowersandcreditprofiles
BankStatementProgramforSelfemployedborrowers
AssetDepletion
Non-primeloans
BlanketLoans
LoanstoU.S.andForeignCorporations
Crosscollateralization
Recentforeclosure,bankruptcyorshort sale
LoansonPrimaryResidencefor BusinessPurpose
Testimonial
Wecouldn’thave askedforabetter teamtowork...
RE Mortgage Advisors made our first home-buying experience seamless Gavin Scott’s financial expertise and clear communication helped us secure the perfect mortgage for our needs He guided us through every step, making sure we understood all the details and felt confident in our decision. We couldn’t have asked for a better team to work with thank you, Gavin, and RE Mortgage Advisors!
PEDRO FERNANDES
FIRST TIME HOME BUYER
