Homebuyer Guide
Prepared by Prepared for
GAVIN PRESCOTT
SAMI MENESES
Table of Contents
Meet Your Financial Manager
Jump to Meet Your Financial Manager
Road to Homeowenship
Jump to Road to Homeownership
Loan Programs
Jump to Loan Programs
Loan Process
Jump to Loan Process
What do you want from your mortgage?
Jump to What do you want from your mortgage?
Home Buyer Tips
Jump to Home Buyer Tips
Benefits of Owning a Home
Benefits of Owning a Home
Loan Products
Jump to Loan Products
Testimonial
Jump to Testimonial
IntroducingGavinScott, FinancialManager
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Gavin Scott Senior Finance Manager
NMLS #0123456
000-123-4567
gscott@rmaloans.com
Ownahome sooner,work withme.
RoadtoHomeownership
Step 1 | Get Pre-Approved
Getting pre-approved is a crucial first step in the homebuying process and demonstrates you have consulted with a lender and are ready to move forward A pre-approval not only strengthens your position with sellers but also gives you a competitive edge in a tight market
WhyBuyingBeatsRenting:
UnlockTaxBenefits: Potential tax deductions can put money back in your pocket each year
BuildEquity: Unlike rent payments, your mortgage helps you build equity and invest in your future
PrideofOwnership: Create a home that reflects your personal style, not just a temporary space
Stability &Security: Say goodbye to rising rent and the uncertainty of lease renewals
It’sYour Space: From customizing interiors to creating your ideal outdoor space, every decision is yours to make
Step 2 | Find Your Dream Home
Work with your agent to clearly define your wants and needs Start your search 3-6 months ahead of when you plan to buy Your agent will help you balance your expectations with reality to find the best fit
KeepTheseFactorsinMind:
Cosmeticvs.Structural - Know the difference between minor repairs and major renovations
NeighborhoodSafety- Understand local crime rates and community safety
SchoolQuality - Research the area's schools to ensure your family's future success
Property Taxes - Stay informed about tax rates and their impact on your budget
HOAFees&Rules - Check if the property is part of a homeowners association (HOA), and understand their fees and community rules
Convenience - Consider the home's proximity to highways and public transportation for easy commutes
Step 3 | Make an Offer
Once you’ve found your dream home, it’s time to make an offer Work closely with your agent to negotiate the price and schedule a home inspection to ensure everything is in working order
What to Expect
PricingInsights: Your agent will provide market analysis and help you negotiate a fair price based on comparable sales in the area.
HomeInspection: A thorough inspection will assess the condition of key systems such as the foundation, plumbing, HVAC, and electrical to identify any potential issues
RequestingInclusions: If you’d like appliances or other items included in the sale, make sure to clearly outline these requests in the offer contract
nts needed to finalize your loan This is also when you’ll lock in your interest rate, securing it until closing and protecting yourself from potential rate fluctuations
At the same time, the underwriting and appraisal process begins This ensures your loan is sound and that you're not overpaying for the home
Here’showitworks:
InitialReview The underwriter will review your application, credit, and collateral within 48 hours
ClearingConditions If any additional documents or details are needed, we’ll work with you to clear these within 2 days
FinalReview After all conditions are cleared, the loan will undergo a final review by the underwriter, who will issue a “Clear to Close” (CTC)
ClosingConfirmation: The processor confirms the loan is cleared to close and all parties will be contacted to coordinate signing date and time .
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
BenefitsofOwningaHome
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 is a traditional loan with consistent payments over 15, 20, or 30 years First-time homebuyers can qualify with as little as 3% down, while those with prior homeownership need at least 5%. Loan limits reach up to $803,500 for singleunit properties, with higher limits in high-cost areas. This option is ideal for borrowers with strong credit, offering competitive rates and the ability to avoid Private Mortgage Insurance (PMI) with a 20% down payment. However, a smaller down payment may require PMI, increasing monthly costs
ARMs (Adjustable-Rate Mortgages)
ARM Loans offer lower initial interest rates than fixedrate loans, but the rate adjusts periodically (e.g., after 5, 7, or 10 years). They’re ideal for buyers planning to sell or refinance before the rate adjusts, as they provide lower initial payments and potential savings However, payments can increase after the fixed period, and there’s a higher long-term risk if interest rates rise
FHA Loans (Federal Housing Administration)
FHA Loans are government-backed loans designed for first-time homebuyers or those with less-than-perfect credit They offer lower down payments (as low as 3 5%) and more lenient credit requirements FHA loans are ideal for borrowers with limited funds or past financial setbacks, including those recovering from foreclosure or bankruptcy, withthe option to buy again after one year with counseling. However, they require mortgageinsurance (MIP), which can increase monthly payments, and have county-specific loan limits
VA Loans (Veterans Affiars)
VA Loans are government-backed loans available to active-duty service members, veterans, and eligible surviving spouses. These loans offer some of the best terms, including no down payment, no private mortgage insurance (PMI), and competitive interest rates. They are ideal for military families but are only available to qualified service members and their spouses While a funding fee may apply, it can be rolled into the loan
USDA Loans (U.S. Department of Agriculture)
USDA Loans are government-backed loans designed for low- to moderate-income buyers in eligible rural and suburban areas. They offer favorable terms, including no down payment, competitive interest rates, and low mortgage insurance costs These loans are ideal for buyers in qualifying areas but have income limits and property requirements
Jumbo Loans
Jumbo Loans are designed for buyers who need to borrow more than the conforming loan limits set by the Federal Housing Finance Agency (FHFA), often used for high-priced or luxury homes. These loans are ideal for those purchasing properties in high-cost areas or with prices exceeding conventional loan limits Jumbo loans allow for larger loan amounts and can have fixed or adjustable rates, but typically require a larger down payment (usually 20% or more) and have stricter credit and income requirements.
LoanProcess
Pre-approval
Meet with the loan officer to discuss your goals and available loan options.
Complete the loan application, providing financial details and housing preferences Submit supporting documents (e g , income verification, bank statements, tax returns) Pre-Approval letter issued
ForRefinancing
ForRefinancing:
Meetwiththeloanofficertodiscussyour refinancinggoals
Completetheloanapplication,providingdetails onyourcurrentloanandfinancialsituation
Submitsupportingdocuments(eg,income verification,propertydetails,financial statements)
2
EscrowisOpened
Rateisdiscussedandlocked
Initialdisclosuressenttoborrower Appraisalisordered
4
Underwriting
Borrowersapplicationand programguidelinesevaluated
Loanfileandresidential appraisalreviewed Underwritingdecision completed.
CleartoClose!
Conditionsclearedandfileisready forclosingdocuments
Closingdocumentsorderedand senttoEscrow Escrowcoordinatedsigningwith notaryandborrower
3
LoanProcessing
Title work ordered and requested from title company
Verification of employment completed Homeowners Insurance Policy obtained
5
LoanApproval
Underwriterissuesconditionalapproval
Additionalitemsmayberequestedtoclear thefile’sconditionsforclosing
Funding
Loandocumentssignedbyborrower
Requiredfundsdeliveredtoescrowcompany
LoanProducts
We offer Non-QM loans for borrowers with unique financial situations, including selfemployed 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
NonQM / Jumbo and Super Jumbo Portfolio Loans
Loan Amounts: $500k - $30M
Bridge Loans
Cross Collateralization
Bank Statement Loans (Personal & Business)
DSCR/Investor Cash Flow Loans
Hard Money Loans
Condo-tels
Non-Warrantable Condos
Other LoanPrograms
Flexible RSU Income Underwriting
1099 Only / P&L Program
Interest Only Loans
Vesting in Entities (LLCs, Partnerships, S-Corps)
Foreign National Loans
Recent Foreclosure, Bankruptcy or Short Sale
Blanket Loans
Reverse Mortgage
Home Equity Products
Loans to U.S. and Foreign Corporations
Commercial Lending: Up to $275M
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
