MAKING HOMEOWNERSHIP POSSIBLE. COLTON CONCELLOS Junior Loan Officer NMLS #1881817
P (805) 757-4398 E cconcellos@s1l.com
THE MODERN MORTGAGE EXPERIENCE TM
Synergy One Lending, Inc. | NMLS # 1907235
TABLE OF CONTENTS
Synergy One Lending, Inc. | NMLS # 1907235
01
HOW MUCH CAN I AFFORD?
02
HOMEOWNERSHIP BENEFITS
03
HOMEBUYERS ROAD MAP
04
SIX QUESTIONS TO ASK
05
PREQUALIFICATION VS PREAPPROVAL
06
BORROWERS CHECKLIST
07
CHOOSING THE RIGHT LOAN FOR YOU
08
MORTGAGE TERMS EXPLAINED
09
DO’S AND DONT’S
“HOW MUCH CAN I AFFORD?” Think about it
”What is your current monthly housing expense?” ”How much can you spend and how much are you comfortable spending?” ”How much will maintenance cost monthly? (Water, Sewer, Garbage, Cable, Power, etc)” Synergy One Lending, Inc. | NMLS # 1907235
HOMEOWNERSHIP BENEFITS
OWNING
RENTING
1. Paint inside any color you want
1. No matter what happens with the value of
2. Make home improvements that benefit you 3. Control your asset and how long you live in it 4. Get the pet you’ve always wanted without
landlord’s permission
the home you will never gain equity 2. Limited to no ability to personalize
living quarters 3. No tax advantage 4. Uncertainty of landlord selling the property
5. Gain equity and appreciation
you live in
6. Tax benefits*
5. No control over rent increases
7. Throw wild parties
6. Throw not so wild parties
RENT
1 YEAR
5 YEARS
10 YEARS
$1,000
$12,000
$60,000
$120,000
$1,250
$15,000
$75,000
$150,000
$1,500
$18,000
$90,000
$180,000
$1,750
$21,000
$105,000
$210,000
$2,000
$24,000
$120,000 $240,000
$2,500
$30,000
$150,000 $300,000
Synergy One Lending, Inc. | NMLS # 1907235
Think of how much you spent on rent that could have been building your home equity!
HOMEBUYERS ROADMAP 1
2
Decide you want to buy a home
Meet with S1L Mortgage Advisor
8
7
Make an offer
Go Shop
Offer accepted?
YES
3
Apply for your loan and provide all needed information
6
Synergy One Lending, Inc. | NMLS # 1907235
5
Get connected to a realtor through your loan officer
Decide that your approval meets your financial goals
9
10
Schedule/Attend a home inspection
Review closing disclosures w/ lender
12
11
Pop champagne!
Sign loan docs
NO
More Shopping!
4
Review your pre-approval and Total Cost Analysis (TCA)
Make an Offer
Synergy One Lending, Inc. | NMLS # 1907235
SIX QUESTIONS YOU SHOULD BE ASKING WHEN FINANCING YOUR NEW HOME LOAN
.01
How will current interest rates affect my financial goals?
.02
What are mortgage rates based on?
.03
What are the total fees associated with this loan product and rate?
.04
How do daily fluctuations in stocks/bonds impact mortgage rates?
.05
What is the percentage of the loans you close and close on time?
.06
Can you provide the name of 5 clients I can contact who has used you in the last 30-days?
Synergy One Lending, Inc. | NMLS # 1907235
PREQUALIFICATION VERSUS PREAPPROVAL WHAT LENDERS LOOK FOR
CREDIT HISTORY
DEBT TO INCOME RATIO
DOWN PAYMENT
On-time payments and the length of history.
Ratio reflecting your monthly obligations and your monthly income.
With larger down payments your loan terms will be better.
FINANCIAL HISTORY
ASSETS
EMPLOYMENT HISTORY
Bankruptcies/foreclosures records? Consistent income increase over the years?
What funds do you have available during and after you close your loan?
How long have you been with your employer or line of work?
PRE-QUALIFICATION
PRE-APPROVAL
• Provides a “ballpark” estimate of your buying power
• Provides proof to real estate agents and sellers you’re pre-approved for a specific loan
• Is based on summary information of your income and assets
• Is based on verification of your income, credit and assets
• Requires a satisfactory review of property, financial documents and program requirements to issue final approval
• Does not require a satisfactory appraisal and title review until final approval
Synergy One Lending, Inc. | NMLS # 1907235
• We offer this service at no cost before you find a home
BORROWER CHECKLIST
INCOME DOCUMENTATION (W2 Employee) Most Recent 2 Years of Tax Returns 2 Years of W2s 2 Pay Stubs (Most Recent)
SCHEDULE OF REAL ESTATE (Please provide information for all properties currently owned)
ASSET DOCUMENTATION 2 Most Recent Bank Statements - All Pages of All Accounts (Borrower and Co-Borrower) 2 Most Recent Investment Account Statements (Borrower and Co-Borrower)
IF APPLICABLE DD214 (If Using VA Loan)
Recent Mortgage Statement for Current Residence
Bankruptcy Discharge Papers (All Pages)
Copy of Your Homeowners’ Insurance
Gift Letter/Gift Documentation
Recent Property Tax Bill
Divorce Decree or Legal Separation Agreement, Including Child Support Agreement Documents
Property Lease (If Rented w/2 Year Landlord History) HOA Information (Monthly Payments)
Synergy One Lending, Inc. | NMLS # 1907235
HOW TO CHOOSE
CHOOSING THE RIGHT LOAN FOR YOU CONVENTIONAL Min FICO 620. Up to 97% financing. No mortgage insurance needed with a 20% downpayment. HomeReady and HomePossible programs.
FHA Min FICO 620. Up to 96.5% financing available. Mortgage insurance applies.
VA Min FICO 620. Up to 100% financing available. Eligible Military only. No mortgage insurance.
USDA Min FICO 620. Up to 100% financing available. Eligible rural areas. Mortgage insurance applies. Income limits.
JUMBO Up to 90% financing available.
Synergy One Lending, Inc. | NMLS # 1907235
MORTGAGE TERMS EXPLAINED
What is title insurance? Insures against financial loss from
DOWNPAYMENT OPTIONS Checking/Savings/Money Market Account - Liquid
defects in title to the property. It’s
Gift funds - Must be a gift that doesn’t have to be paid back
a policy that insures you won’t
Borrow against 401K
have any unknown claims made
Close out CD
to the ownership of your home.
Cash out stocks or bonds Cash? No mattress money allowed
Explain “escrow” WE HAVE TO SOURCE ALL FUNDS Unaffiliated 3rd party that receives and disburses money, documents and instructions
Cash out stocks or bonds Cash? No mattress money allowed
between two parties.
CLOSING COSTS & PREPAIDS Origination Fee Appraisal Title Fees Title Insurance Taxes Homeowners Insurance Recording Fees Synergy One Lending, Inc. | NMLS # 1907235
DO’S AND DONT’S
PLEASE
PLEASE
DO NOT
DO
Don’t make a major purchase Don’t apply for any new credit
Do continue making your mortgage / rent payments Do stay current on all existing accounts
Don’t transfer any balances Don’t use your down payment savings
Do keep working at your current employer
Don’t pay off charge-offs
Do return ALL requested documentation on time
Don’t close any credit card accounts
Do continue living at your current residence
Don’t change bank accounts Don’t charge up credit cards Don’t take out a new loan
Synergy One Lending, Inc. | NMLS # 1907235
Do call me with any questions!
COLTON CONCELLOS Junior Loan Officer NMLS #1881817
THE MODERN MORTGAGE EXPERIENCE TM
P (805) 757-4398 E cconcellos@s1l.com Synergy One Lending, Inc., NMLS 1907235. 3131 Camino Del Rio N 150, San Diego, CA 92108. Toll Free #: (888) 995-1256. Synergy One Lending, Inc. is licensed in the following states: CA- Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act, ID, NV . All Loans are Subject to Credit and Property Approval. Equal Housing Lender. www.nmlsconsumeraccess.org S1L.0821.44
Synergy One Lending, Inc. | NMLS # 1907235