S1L - Christine Shin - Mortgage Guide

Feel free to keep this accessible as a reminder! 1

D o n ’t apply for new cre dit of any kind .

D o ke e p all existing cre dit card account s op e n .

D o n ’t M A X O U T or ove rcharge existing cre dit cards

. D o maintain your e mploym e nt at your curre nt job.

. D o n ’t consolidate de bt to one or t wo cards .

. D o pay of f colle c tions , judgem e nt s , or tax lie ns re p or te d within one year.

D o n ’t make any large p urchase s .

. D o stay curre nt on your existing account s .

D o n ’t make any large de p osit s into any of your account s .

D o ca l l u s . We are he re to help you through your hom e loan pro ce ss .

Need a n A g en t?

Do n’ t ha ve a n a g ent a nd need so me sug g estio ns? N o pro blem! J ust let us kno w!

OurLOAN PROCESS

WAGE Earner W2 INCOME

A W2 is the most common type of income.

You can determine your base income by taking your hourly rate and multiplying it by the hours you worked.

Example: $25 an hour multiplied by 40 hours is your weekly income, which is $1,000

To calculate your annual income, you will want to take your weekly income of $1,000 and multiple it by 52 (as there are 52 weeks in a year).

BONUSES: A history of receiving bonuses for the last 2 years is required, as bonuses are averaged over a period of 24 months. It is important to note that an underwriter may exclude this income if there is no past history of bonuses and a history of declining bonuses will also affect the average.

OVERTIME: A history of overtime for the past 24 months is required Just like bonuses, overtime is averaged over the past 24 months. An underwriter may also exclude this income if a history of overtime is not provided. Declining overtime may also affect the average

Your base annual pay, assuming you work 40 hours a week regularly, is $52,000

To calculate your monthly income, take your annual pay of $52,000 and divide it by 12 (months) and you will get a monthly income of $4,333 33

COMMISSION: Commission is averaged over a period of 2 years and requires a history of receiving commission to be included when calculating your total income. Failure to provide history of commission may lead to an underwriter excluding this income from your Total Income. Declining commission can also affect the average

Mortgage Financing

Always check with your lender before doing any of the following prior to closing on your home!

MAKING A BIG PURCHASE:

Avoid making major purchases, like buying a new car or furniture, until after you close on the home. Big purchases can change your debt-to-income ratio that the lender used to approve your home loan and could throw the approval into jeopardy.

OPENING NEW CREDIT:

Do not open any new credit cards or get a loan without speaking to your lender first. Missing any payments: Pay your bills on time to keep your credit score from dropping.

CASHING OUT:

Avoid any transfers of large sums of money between your bank accounts or making any undocumented deposits - both of which could send "red flags" to your lender.

KEEP THE SAME JOB:

Be kind to your boss and keep your job. Don't begin looking for new work right now, unless it's a second job to make extra money.

HOME IMPROVEMENTIdeas

INT ER I OR P AI NT I N G

One of the best ways to update the look and style of your home is by adding an new coat of paint!

Below are some tips when painting your home:

• If you’re planning on repainting multiple rooms, buy a 5 gallon paint container to save some money

• When it comes to painting, going with a high quality paint, although it may be more expensive, it will pay off in the long run as you will avoid having to apply multiple coats of paint.

LAN D SC A P I N G

Updating your landscaping not only gives your home more curb appeal, which can increase the value of your home, but it also lets you expand usable outdoor space for you and your family!

Below are some tips when updating your landscaping:

• Going with more hardy perennials can save you money compared to buying new annual plants each year Consider types of bushes, shrubs and trees that can thrive all year round.

REMOD ELI N G Y OUR KI T C H E N

n is no longer the room just for meal preparation, ome a place of social gatherings and family times g your kitchen to be more open and spacious will o have another room to socialize and mingle sts.

e some tips when remodeling your kitchen: While your kitchen is out of commission, make sure o have a temporary kitchen in place so you can ook, wash dishes and make your morning coffee. ve a few of your old cabinets and countertops to build a makeshift kitchen.

o not order countertops until your cabinets are installed. The cabinets may have a different mension after installation due to out of square walls

What are they? CLOSING COSTS

Closing Costs for BUYERS in California

On average, a Californian home buy see their closing costs to average around 2% to 3%.

Closing costs are split into two types of expenses: one-time expenses that are non-recurring and recurring expenses that are either pro-rated or ongoing Below is a breakdown of the fees for each type of expenses:

NON-RECURRING FEES

These fees are only required to be paid once and are not recurring.

• Down Payment

• Escrow Fees - fee for escrow services

• Title Insurance – this fee allows a search of the title’s history to ensure that the title has no defects such as liens. This is paid by the buyer/borrower to protect the lender in case issues with title arises

• Notary

• Recording

LENDER FEES

• Mortgage Origination – cost for originating

• Underwriting

• Processing

• Flood Certification – fee for a risk assessment of the property

• Discount Points

• Mortgage Insurance – fee typically required when the down payment is less than 20% of the purchase price of the property

RECURRING OR PRORATED FEES

You can expect recurring fees over the course of owning the home. An example of this is property taxes. At closing, some funds are pulled aside to pay the first few payments of these ongoing expenses. This allows for a smoother transition for you as a new home owner

In most cases, three months of home insurance and six months of property taxes are collected at closing. These will be disbursed for you on your behalf each month by the lender

• Prepaid Mortgage Interest – this covers the interest portion of the mortgage payment for the current month

• Property Taxes

• Hazard Insurance

• HOA Dues – fee to cover the first two months

Testimonials

Christine and her team went above and beyond with excellent communication and unmatched follow through plus the BEST rates in the industry!! My clients are extremely pleased with quick timing of their loan and rapid communication which ensured we closed without a glitch.

Ms. Christine and her team are the best. She updates me every step of the way. Her team closed this loan in less than 30 days, which is very important now a days due to so many competitors out there. I have trusted her and her team and they work it through to the end with me. Thank you Christine and Team. God bless."

Christine and her team were amazing during the loan process. I was continuously reminded of items I needed to work on. The loan status emails are fantastic and helpful, it is very easy to know where in the process we are. I appreciate the level of commitment, clarity, responsiveness, and follow through. Christine went out of her way to ensure I understood all my options and my needs were met. I would definitely work with Christine and her team again.