MAKING HOMEOWNERSHIP POSSIBLE. MICHAEL KNELL Office Manager NMLS #316867
P (801) 425-3619 E mknell@S1L.com
TABLE OF CONTENTS
Synergy One Lending, Inc. | NMLS # 1907235
01
HOW MUCH CAN I AFFORD?
02
HOMEOWNER BENEFITS
03
HOMEBUYERS ROAD MAP
04
PREQUALIFICATION VS PREAPPROVAL
05
HOW TO CHOOSE
06
BORROWER CHECKLIST
07
DOS AND DO NOTS
“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 the home you will never gain equity
2.
Make home improvements that benefit you
3.
Control your asset and how long you live in it
2.
Limited to no ability to personalize living quarters
4.
Get the pet you’ve always wanted without landlord’s permission
3.
No tax advantage
5.
Gain equity and appreciation
4.
Uncertainty of landlord selling the property 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 ROAD MAP 3
1
2
Identify a realtor to help you
Decide you want to buy a home
Apply for a mortgage and submit paperwork
Get Pre-approved
8
7
6
5
Get approved for your home loan
Complete paperwork
Apply for your mortgage loan
Make your offer! Get it accepted!
9
10
11
12
Sign your loan paperwork.
Get the keys to your new home!
Order, schedule and attend a home inspection
Understand the final terms of your mortgage
4
Step 3 Details—Meet with your mortgage professional to: determine the type of loan you will be using, determine your desired purchase price, loan costs and monthly payment, understand the financial benefits of home ownership and understand what to expect throughout the home buying process. Step 5 Details—Identify a Realtor to help you: find suitable homes in your area and schedule visits into those homes for your consideration, negotiate the terms of your offer(s), help you navigate through your legal aspects and contractual requirements and protect you from potential hazards throughout your home buying process. 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
•
We offer this service at no cost before you find a home
Synergy One Lending, Inc. | NMLS # 1907235
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 580. Up to 96.5% financing available. Mortgage insurance applies.
VA Min FICO 580. 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
BORROWER CHECKLIST
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 between two parties.
Cash out stocks or bonds Cash? No mattress money allowed
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
DO NOT Don’t make a major purchase Don’t apply for any new credit Don’t transfer any balances Don’t use your down payment savings
PLEASE
DO Do continue making your mortgage / rent payments Do stay current on all existing accounts 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!
1 WO R K 2 3 4 5 6 7 8 9 H O W
W E
APPLICATION We’ll talk about your needs up front and gather as much info as possible to get a head start on your refinance or purchase.
LOAN DOCUMENTS We’ll need your help collecting documentation such as Pay Stubs, Bank Statements, W-2s and Employment History so we can have your loan processed quickly and prevent any last minute rushing and stress.
Meet your new best friends...
Your Synergy One Lending team! Have a conversation with us about your goals to establish expectations, assess credit, and check out financing options.
S1L.1020.2123TE.C
Synergy One Lending, Inc. | NMLS # 1907235
DISCLOSURES You will receive, acknowledge and return a disclosure package, which explains your loan product and costs.
APPRAISAL Here, we work with a professional team of local appraiser to have a good look at the value of your investment, your home.
PROCESSING Once all the documentation is provided, your loan will be sent to one of our Processors, who will make sure everything is in order before sending it off to the Underwriter.
UNDERWRITING Since we hire only the best, you can be sure we will treat your file with love and attentive care throughout this very important part of your transaction.
CONDITIONAL APPROVAL Here, we will satisfy any remaining conditions to your final approval as quickly as possible to get you to the closing table.
CLEAR TO CLOSE Time for a happy dance. We are now ready to get you to the closing table by preparing your final loan documents. Thanks to our awesome teamwork, you will have a smooth and exciting closing experience.
CELEBRATE! When you’re happy, we’re happy. Congratulations on a successful transaction. Your loan is funded. Here’s to our new and lasting partnership!
MICHAEL KNELL Office Manager NMLS #316867
P (801) 425-3619 E mknell@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: AZ, AR, CA - Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act., ID, KY, MT, TN, TX, UT, WY. All Loans are Subject to Credit and Property Approval. Equal Housing Lender. www.nmlsconsumeraccess.org
Synergy One Lending, Inc. | NMLS # 1907235