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First Time Home Buyers Presentation

A first time home buyers seminar presented by Apurva Sanghavi, Branch Manager of Network Funding, LP.
by

Apurva Sanghavi

on 27 June 2016

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Transcript of First Time Home Buyers Presentation

First Time Home Buyer


To Buy or Not to Buy?
Why You Should Buy a Home
You have a family and need room to grow
You expect to stay put for 5 or more years
You want a home that is difficult to rent
You’re handy & and ready to invest
You’ve saved up a down payment

Why You Shouldn’t Buy a Home
You don’t have a good reason like family or schools
You can’t afford the down payment
You can rent for much less
You plan on moving soon
You’re worried about job security

Getting Preapproved
Documents You'll Need
30 days of Paycheck Stubs
2 years of Tax Returns (Must be Filed!)
30 days of Bank Statements
Each deposit over $800 needs paper trail
2 years of W2’s from consistent job history
Change of Industries could impact income calc

Organize your Assets
Get ready for the down payment
Cash accounts (liquid funds)
401k, stocks, other investments
Gift funds? (max. allowed varies)
Move funds around early

Review your Debt
Pull credit report, look for errors
Disputes Often need to be cleared
Collections can be required to be resolved
Figure out how much monthly income goes towards debt: 28 –33% healthy – 45-50% max
Pay down credit card balances to 1/3rd
Don’t open any new lines of credit
Don’t buy any big ticket items
Co-borrower will need to do the same

Understanding Affordability

The Full Monthly Payment:
Principal & Interest
Don’t forget Property Taxes!
Home Owners (Hazard) Insurance
Private Mortgage Insurance
HOA Dues
Flood Insurance (If Required)

Different Loan Programs

FHA – 3.5% Down – 640 FICO
VA - 0% Down – 620 FICO
Conventional – 5% Down – 660 FICO
What is PMI? How is it calculated?
What is a split loan? (80/10/10, 80/15/5)
Why would you do this?
Jumbo & Super Jumbo

Government Loans

Government loans are backed by federal or state agencies. In general, they answer the needs of first-time homebuyers by offering:
More flexible credit guidelines
Allowance for smaller or no down payments
Types of government loans include FHA, VA, USDA
Conventional Loans

Conventional loans, which are not backed by the government, suit the needs of both first-time and move-up homebuyers.
Types of conventional loans include:
Conforming (loan amounts up to $417,000)
Jumbo (loan amounts over $417,000)

The 8 Steps to Closing

Pre-Approval
Offer Accepted/ Purchase Contract
Loan Application
Processor Checklist
Appraisal Completed
Underwriting Approval
Clear to Close
Closing & Funding

What causes loan DELAYS?

Taxes Not filed correctly or on time
IRS takes 2-3 weeks to send transcript, if unfiled add 4 weeks to the process after filed
Appraisal has issues
Borrower SLOW to submit documents
Credit requires repair
Assets not ready (Funds not available or properly documented)
Piecemeal Documents sent in
Missing a Survey for the property
Divorce not complete

What causes loan denials?

Missing Alimony/Child Support in Income/Debt Calculations
Recent Late Payments (Credit cards, Mortgages)
Unsettled Judgment's on Credit
Too Many Disputes (boosts score artificially)
Not Enough trade lines on Credit Report
Deferred Student Loans start soon
Open New Trade Line before closing
Insufficient Job History (3 years in same industry)
Too many deductions on Taxes (Self Employed Borrowers)
Commissions or Bonus makes up most of income (no 2 year history)
Taxes Unfiled

Ways we can help

Credit Review & Repair
Underwrite before you are under contract!
Gather & Organize supporting documents before preapproval
Round the clock access for Q&A
Underwrite without a Contract
Affordability Scenarios for your buyers
Open House Preapprovals & flyers
Weekly Updates on all clients

Questions?

A pre-approval letter is a letter from a bank or a lender estimating how much they'll lend you
Establishes what you can afford & makes offer process go faster
Good for 90 days, depending on lender
Ask for a few different amounts
Similar, yet different from pre-qualification

nflpmtg.com
Who am I?
Branch Manager and Loan Originator
11 years in Mortgage Industry
Previously worked at RMC Vanguard and APB
Fastest growing Branch of NFLP ~30 employees
Started in Sales with IBM
Proud father of a 9 year old girl
dhoffman@nflpmtg.com
Happy Hour on us!
Town Center
Sugar land
5pm

By Douglas Hoffman
Douglas Hoffman
281-686-2594 - Cell
Full transcript