Colton Concellos - Homebuyers Booklet

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