BUYING IN WINTER YOUR GUIDE TO A SMART MOVE

TA B L E O F C O N T E N T S

GET TO KNOW OUR TEAM

Homebuying Made Easy

Not All Lenders Are Alike

You’ll Love Working With Us

LoanFly: The App That Gets You Home

TAKE A LOOK AT THE HOUSING MARKET

Why Buy a Home in the Winter?

Buying Beats Renting

BOOST YOUR HOMEBUYING KNOW-HOW

Learn the Lingo

Homebuying Myths Debunked

Know Your Credit Score: Credit Overview + Handy Tips

7 Steps to Home: The Mortgage Process

Kick Your Prequali!cation Up a Notch

Getting Your “Docs” in a Row: A Quick Guide to Loan Paperwork

Down Payment Strategies

How to Save in Closing Costs

How to House-Hunt Like a Boss (And How a Realtor Can Help)

10 Homeownership Facts

8 Insider Buying Tips

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A D I F F E R E N T K I N D O F B U Y I N G E X P E R I E N C E

A DIFFERENT KIND OF EASYBuying a home and getting a mortgage can seem

overwhelming. But that’s all about to change. With

Priority Home Lending by your side, you’ll have all the

guidance and support you want every step of the way.

Plus, you’ve got this handy guide as your road map to

home. You’ll !nd everything from housing market trends

to down payment strategies and more info to give

you a complete overview of homebuying. And

you can always reach out to our team at any time.

We’re here to make your mortgage experience as

effortless as possible.

PULL UP A SEAT,

ENJOY SOME HOT

COCOA, AND RELAX

With Pr ior i ty Home Lending , you won’t be left

out in the cold on your journey home.

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PRIORITY HOME

LENDINGBROKER BANK/CREDIT UNIONS

COMPETITIVE

INTEREST RATES

BROAD PRODUCT MIX

ONE POINT OF

CONTACT? ?

IN-HOUSE

PROCESSING? ?

IN-HOUSE

UNDERWRITING? ?

IN-HOUSE FUNDING ?

COMMITMENT TO

ON-TIME CLOSING? ?

STATE LICENSE ?

not all lenders are alike

THE BOTTOM LINE:

RATES AND PRODUCTS ARE A COMMODITY. AT PRIORITY HOME LENDING,

OUR PROCESSES AND PEOPLE SET US APART!

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OUR PROGRAMS + PRODUCTS

• First-time homebuyer programs

• Down payment assistance programs

• FHA, USDA, and VA loans

• Conventional and jumbo loans

• Renovation and new construction loans

• Second homes and investment properties

• Extended interest rate locks

you’ll love us WE’RE A FULL-SERVICE MORTGAGE LENDER. THAT MEANS

WE HAVE ALL THE RESOURCES AND PROGRAMS TO MAKE

YOUR DREAM HOME HAPPEN.

OUR PERFORMANCE

• 100% on-time closing commitment

• Financially stable and secure

• In-house processing, underwriting, closing, and funding

• Access to the nation’s top mortgage investors

• Real-time loan pricing for competitive rates and fees

• Innovative technology for secure, streamlined transactions

• Quick loan approvals and ready to close in 10 days

• Remarkable service every step of the way

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PREQUALIFY QUICKLY

With a few taps, you can know for sure

how much you can afford before you start

shopping for a home.

SEARCH HOMES

ANYTIME, ANYWHERE

Browse up-to-date listings in your area

and in your prequali!cation range.

GET OUR AMAZING APP FOR AN AMAZING HOME BUYING EXPERIENCE

It’s your home loan the way you want it: On your terms. With LoanFly®, you

have an all-in-one app that helps you soar from start to home in no time.

Plus, you’ll have us by your side whenever you need us.

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G E T R E A D Y F O R TA K E O F F1) Vis i t www.LoanFly.com on your Apple or Android device

2) Download LoanFly® on your device 3) Start soar ing home

Avai lable for Apple and Android devices. Internet access required.

GET ANSWERS

Learn all you need to know about the mortgage process with on-

demand resources and how-to videos. You can also request rates

and calculate estimated payments.

ACCESS LOANFLY® BORROWER PORTAL

Our secure online portal gives you a transparent view of your mortgage transaction. Easily track your loan status, upload

documents, and do so much more in one convenient place.

MAKE A CONNECTION

LoanFly® makes it easy to $y solo during

the process. But you can always quickly

connect with our team at any time.

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WINTER CAN BE A HOMEBUYER’S WONDERLAND. LIKE BOOKING A VACATION, THERE ARE

BENEFITS OF BUYING A HOUSE OUTSIDE OF PEAK SEASON. BUT WITH THE POTENTIAL TO SAVE

MONEY, THIS ONE IS THE BIGGEST.

With the expected seasonal price drop, you could get more house for less money.

HERE’S WHY A WINTER MARKET CAN FAVOR BUYERS:

Price drops. Close to 30 percent of homes cut pr ices this winter, the highest number seen in eight years. [1]

More houses. Fal l housing inventor y only decreased sl ight ly. And, inventor y was up from the previous year. [2]

Rising rent. Recent rents saw a smal l jump of $6 and are cont inuing the hikes that started this summer. [3]

Big savings. Some days are better than others to get a home pr ice break. December 26 is off ic ia l ly the top day of the year to buy. Februar y 9 is another date that could give you some savings. [4]

HERE ARE FIVE MORE BENEFITS THAT COME WITH WINTER HOMEBUYING:

1. Less competit ion and fewer budding wars.

2. More motivated sel lers, loan off icers, and realtors.

3. Faster c losings, in as few as 10 days.

4. Extra t ime to house-hunt.

5. Chance to check a home’s drafts, heat ing , structure, and insulat ion.

Along with lower housing pr ices, you could save even more money when you close on your mortgage in 10 days. Gett ing you home in 10 beats the industr y average by over four weeks. [5]

Shaving a month off the homebuying process could a lso save you thousands on the extra mortgage, rent, ut i l i t y, and storage costs you’d have to pay other wise.

*Timeframe not typical . Not a l l loans wi l l c lose in 10 days. For educat ional purposes only. Please contact a qual i f ied

professional for specif ic guidance. Sources deemed rel iable but not guaranteed.

Sources:

1. “Near ly One in Three Homes For Sale in October had a Pr ice Drop - - Highest Level Since at Least 2010.” Redf in, Nov. 2018.

2. “Exist ing-Home Sales Increase for the First T ime in Six Months.” Nat ional Associat ion of REALTORS®, Nov. 2018.

3. “[NATIONAL REPORT] Renters Denied Hol iday Concessions as Rent Pr ices Increase Nat ionwide.” Abodo, Dec. 2018.

4. “Top 10 Best Days of the Year to Buy a Home.” ATTOM Data Solut ions, Nov. 2018.

5. “Originat ion Insight Report .” El l ie Mae®, May 2018.

THE #1 REASON TO BUY

A HOME IN THE WINTER

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BUYING BEATS RENTINGHERE’S A BREAKDOWN OF HOW OWNING A HOME COULD BE THE RIGHT MOVE TO

SECURING – AND IMPROVING – YOUR FINANCES.

HOMEOWNERSHIP PAYS OFF IN 4 YEARS*

A mortgage is an investment in your equity

Rent is an investment in your landlord’s equity

OWNING IS CHEAPER THAN RENTING**

Buying a median 3-BR home cheaper than renting it in 54% of U.S. counties surveyed

A f ixed-rate mortgage can lock in a f ixed, affordable house payment

Rents have steadi ly been r is ing s ince 1988

Mi l lennia ls may have paid more than $92K in rent by the t ime they reach 30

HOMEOWNERSHIP BOOSTS NET WORTH***

Average homeowner has $231,400

Average renter has $5,200 (44X LESS THAN A HOMEOWNER)

OWNING CAN SAVE MORE INCOME****

Need 17.1% of income to BUY median-priced home

Need 28.8% of income to RENT the same home

*Source: MarketWatch.com – Even with mortgage rates up, buying instead of rent ing makes sense for many (Peter Moric i

– May 29, 2018). **Sources: ATTOM 2018 Rental Affordabi l i t y Report ; 2018 RentCafe Study. ***Source: Federal Reser ve

– Sur vey of Consumer Finances (2013-2016) – 2016 median net worth of homeowners vs. median net worth of renters.

****Source: Pulsenomics Q1 2018

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HERE ARE COMMON

MORTGAGE TERMS THAT ARE

USED THROUGHOUT THE

HOME-FINANCING PROCESS

ADJUSTABLE-RATE MORTGAGE (ARM)

ARMs tend to have an initial lower interest rate than a !xed-rate

home loan. However, this rate may change over the loan term based

on a set index. Payments for ARM loans can increase.

ANNUAL PERCENTAGE RATE (APR)

This is your annual cost of the loan represented as a percentage.

APR allows homebuyers to compare different mortgage programs

based on their annual cost.

APPRAISAL

This is a professional analysis to determine the fair market value of a

property. An appraisal is required to secure !nancing for a home.

CLOSING COSTS

These are the costs and fees that are due on the date of closing,

when a borrower obtains their mortgage and receives the title to their

property. Closing costs include insurance, taxes, and other applicable

fees. Your lender can give you a full list of

closing costs.

CLOSING DISCLOSURE (CD)

This form is a statement of !nal loan

terms and closing costs. You must receive

this form from your lender at least 3 days

before your closing. You can compare this

document with your Loan Estimate.

DEBT-TO-INCOME RATIO (DTI)

Lenders use this ratio to determine if

a borrower can afford their monthly

mortgage payment. DTI is calculated by

dividing the borrower’s monthly debts by

their pre-tax monthly income.

DOWN PAYMENT

This is the portion of the purchase price

that the buyer pays upfront before

!nancing a mortgage. Ask your lender

about low- and no-down payment options.

DOWN PAYMENT ASSISTANCE (DPA)

Programs that offer quali!ed borrowers !nancial

assistance with down payment or closing costs.

FIXED-RATE MORTGAGE

With this type of mortgage, a borrower’s interest rate

stays “!xed” and will not change during the life of the

loan.

LOAN ESTIMATE (LE)

A detailed estimate of the total costs, given to

the borrower 3 days after the lender receives their

application. The lender’s origination fee, points,

escrow, title insurance, appraisal fee, taxes, and other

expenses should be included.

LOAN-TO-VALUE RATIO (LTV)

To calculate this ratio, the lender divides the mortgage

amount by the purchase price or the appraised home

value. LTV helps assess the lender’s risk of the loan.

MORTGAGE INSURANCE (MI)

This insurance protects the lender if a borrower

forecloses on their property. Borrowers pay for MI,

allowing lenders to approve loans they might not have

otherwise. MI may be required with a less than 20%

down payment.

ORIGINATION FEE

This is the fee that a lender charges to prepare the

documents related to a borrower’s mortgage.

PREQUALIFICATION

This is the process of determining how much you’re

eligible to borrow before you apply for a loan.

RATE LOCK

This is a written commitment between you and the

lender to hold a certain interest rate for a speci!ed

period of time.

TITLE

This is a document that states a real estate transaction

took place and establishes the buyer as the legal and

exclusive owner of the property.

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SEPARATE FACT FROM FICTION! HERE ARE THE TWO MOST PERSISTENT MYTHS OUT

THERE—AND THE TRUTH YOU SHOULD KNOW ABOUT.

HOMEBUYING MYTHS DEBUNKED

MYTH #1: YOU NEED A 20% DOWN PAYMENT.

A 20% down payment is a good goal , but i t ’s tota l ly not a requirement. There are programs

out there that require l i tt le to no money down, as wel l as no mortgage insurance. Plus, some

homebuyers could qual i fy for down payment assistance. Most recent homebuyers qual i f ied for

mortgages with less than 20% down. [1]

OF FIRST-TIME BUYERS

PUT LESS THAN 6% DOWN

OF FIRST-TIME BUYERS

PUT LESS THAN 20% DOWN

OF ALL BUYERS

PUT LESS THAN 20% DOWN

For educat ional purposes only. Sources deemed rel iable but not guaranteed.

Sources: 1) Realtors Conf idence Index from the Nat ional Associat ion of Realtors. 2) Most recent El l ie Mae Originat ion

Insight Report of recent ly approved loans.

MYTH #2: YOU NEED PERFECT CREDIT.

Def in i te ly not true! Whi le a higher credit score could mean better loan terms, you can qual i fy for

a mortgage with less-than-perfect credit . Most borrowers approved for a mortgage qual i f ied with

600 – 749 scores. [2]

61% 74% 52%

500-549 550-559 600-649 650-699 700-749 750-799 800+

51.3%

.07% .8%8.7%

18.7%23.9%

34.5%

13.4%

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A CREDIT SCORE NOT ONLY INFLUENCES YOUR HOME-BUYING POTENTIAL, BUT IS

ESSENTIAL FOR OBTAINING SEVERAL SERVICES AND BIG TICKET ITEMS. “90 OF THE TOP

100 LARGEST U.S. FINANCIAL INSTITUTIONS USE THE FICO SCORE TO MAKE CONSUMER

CREDIT DECISIONS,” ACCORDING TO MYFICO.COM.

know your score

Y O U R F I C O S C O R E I S R E V I E W E D B Y M O S T O F T H E F O L L O W I N G E N T I T I E S :

• Employers

• Mortgage lenders

W H A T M A K E S U P Y O U R S C O R E ?

When you’re applying for a mortgage, your credit score is a major factor in determining your interest rate and approval for the loan.

Typically, the higher your credit score, the better your chances for approval and securing a lower rate. But, just how exactly is your

score determined? Most companies use a FICO score that is comprised of !ve elements:

• Landlords

• Insurance companies

• Cell phone companies

• Utility companies

• Credit card companies

• Cable companies

Source: MyFICO.com. Source deemed reliable but is not guaranteed.

Late payments lower

your score, so pay

your bills on time.

Your payment history35%

30%How much you owe

Keep outstanding balances

under 30% of your credit limits.

15%Length of your credit historyA short history isn’t a bad thing,

if you show responsible credit

management. Having a few

credit accounts is better than

having no credit at all.

10%

New credit accounts Lots of new credit account

inquiries can lower your

score. Mortgage and

auto loan inquiries are an

exception; these count

as one inquiry within a

30-day period.

10%

Types of credit you have A variety of credit types – like an

auto loan, credit cards, and other

credit accounts – could

boost your score.

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S O , W H A T ’ S A G O O D S C O R E ?

FICO scores range from 300 to 850, with higher numbers being better. A score of 700 is a good indicator of !nancial health,

and most lenders prefer scores at or above that number, but it is not required.

W H A T ’ S T H E N E X T S T E P ?

OBTAIN A CREDIT REPORT. This is a free service available to you each year, so take advantage.

Visit www. AnnualCreditReport.com and request your free copy from all three credit reporting companies.

• EQUIFAX – WWW.EQUIFAX.COM

• EXPERIAN – WWW.EXPERIAN.COM

• TRANSUNION – WWW.TRANSUNION.COM

Beware of other companies that charge fees for credit reports, because they are often not as accurate as the

three mentioned above.

C H E C K F O R M I S T A K E S

There is no charge for checking into existing errors, so make sure there are no inaccuracies listed on your report. It

is your responsibility to notify the credit bureau of any mistakes, which should be cleared up within 30 days of the

report date. If you need to boost your score, here are a few tips that could make a difference to your score. While

these are general tips, be sure to check with your lender before paying off large accounts and moving your money

around for closing costs and the down payment.

• MANAGE YOUR CREDIT CARD – Keep balances to less than 30 percent of your limit

• CORRECT CREDIT LIMITS – It’s important for your credit card company(s) to report your correct limit to the major credit

bureaus; your report could suffer if it shows you’re over the reported limit, when the limit is actually higher

• GET CREDIT WHERE CREDIT IS DUE – Be sure your report shows all of your credit accounts, especially the healthy ones

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7 steps TO HOME

WHAT CAN YOU EXPECT

FROM START TO FINISH?

THESE STEPS GIVE YOU A

BEHIND-THE-SCENES LOOK.

1. PREQUALIFY

• Do this !rst so you know how much home you can afford

• Prequalify with our LoanFly® app - Get the app at LoanFly.com

2. MEET WITH YOUR LOAN OFFICER

• Discuss programs, monthly payments, and interest rates

• Get a prequali!cation letter to strengthen your purchase offer

• Put the !nishing touches on your loan application

3. SHOP FOR YOUR DREAM HOME

• Work with a local realtor to !nd the right home in your

prequali!cation range; if you need a referral, let us know

• You can also search for homes in our LoanFly® app

• Let your loan of!cer know when the seller accepts your offer

4. DURING THE LOAN PROCESS:

• Sign and return initial loan documentation

• Submit an executed purchase contract to your loan of!cer

to lock your rate

• Schedule an inspection to check the home for any

major issues

• Your lender orders the appraisal and lets you know key

contract dates

• Secure homeowners insurance coverage before your closing

• Promptly provide requested documentation

IT’S REALLY THAT EASY! YOU’RE NOW THE PROUD OWNER OF A NEW

HOME. AND YOU’VE MADE A FRIEND FOR LIFE:

WE ARE ONLY A CALL AWAY TO ANSWER YOUR

QUESTIONS ABOUT YOUR MORTGAGE.

5. GET READY FOR FINAL APPROVAL

• The processor orders title commitment and preps your

loan for underwriting

• The underwriter makes the !nal loan approval decision

6. REVIEW THE CLOSING DISCLOSURE (CD)

• Your CD includes your !nal loan terms and closing costs

• You get the CD at least 3 days before closing

• We con!rm closing details: Where, when, who, and

how much for your closing costs

7. CLOSE ON YOUR HOME

• Closing takes place at the title company or realtor’s of!ce

• Bring a valid driver’s license for each borrower, plus a

certi!ed/cashier’s check if closing costs are due

(payable to the escrow company)

• Sign documents, get the keys, and celebrate because

you’re a homeowner!

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6

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KICK YOUR PREQUALIFICATION

UP A NOTCH Getting prequalified is an important first step of

the homebuying process. You’ll f ind out in advance

exactly how much you can afford to buy. You’ll also

have a competitive advantage and show sellers you’re

ready, will ing, and able to buy a home. But not all

prequalifications are created equal.

GOOD

You prequal i fy without sending any requested loan documents. (Check page 16 for a quick

over view.) You can start shopping for a home, but your prequal i f icat ion shows we’ve only reviewed

your credit report . Your offer may not be as strong as one from a buyer who has submitted

documentat ion. Which means someone else could get the home you’ve been eyeing!

BETTER

You prequal i fy and send most of the requested loan documents. Your f i le is run through the

automated under writ ing system, and you are condit ional ly approved for a loan before you even start

shopping for a home. Ful l d isclosure: We may request a few more i tems from you after we get your

in i t ia l paper work. Keep in mind, we won’t ask for anything that’s not super important to gett ing

your paper work in order!

EVEN BETTER

You prequal i fy and send al l of your requested loan documents. We ver i fy a l l of your f inancia ls, and

you are off ic ia l ly pre-under writ ing qual i f ied. Congrats! You can now conf ident ly make an offer on a

home backed by our commitment to lend, which can help you stand out from other buyers.

Know the good, better, and EVEN BETTER way to prequalify.

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loan

ch

eck

list

G ET T I N G YO U R “ D O C S ” I N A R OWHere’s a quick overview of documentation needed to get a home loan. You may be asked for

more items along the way based on your financial profile and loan program.

By furnishing any and/or all of the documentation, an applicant is in

no way obligated to accept the terms and conditions of the mortgage

offered, nor does the borrower have to provide these documents to

receive a Loan Estimate.www.LoanFly.com

BANK STATEMENTS

Showing most recent two-month history

- ALL PAGES

BROKERAGE STATEMENTS

Showing most recent two-month history

- ALL PAGES

RETIREMENT STATEMENTS

Showing most recent two-month history

- ALL PAGES

EMPLOYMENT PAY STUBS

From the last 30 days of all jobs held by

each applicant

W-2 FORMS

From the most recent two years for each

wage-earner applicant

PERSONAL FEDERAL

INCOME TAX RETURNS

(1040s)

From the most recent two years, with

all schedules, statements, and addenda

(completed and signed)

MOST RECENT

MORTGAGE STATEMENT

For any other properties owned by the

applicant

COPY OF DRIVER’S LICENSE

FOR EACH APPLICANT

HOMEOWNERS

INSURANCE AGENT’S

CONTACT INFORMATION

Manage paperwork, send documents,

check your credit score, and more in our

LoanFly® Borrower Portal.

UPLOAD DOCUMENTS

WITH THE GREATEST

OF EASE!

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DOWN PAYMENT STRATEGIES

1. GET A LARGER TAX REFUND

Decrease the number of withholding exemptions

you claim on your employer’s tax form and apply the

refund to your down payment. You can work through

it manually on the IRS page to increase your refund

by tweaking your paycheck at

www.irs.gov/individuals/employees/tax-withholding.

2. BORROW MONEY

Many borrowers ask relatives for money to help

purchase a home. Tax laws will allow relatives to

gift a certain amount without tax consequences.

Consult a tax professional to learn the maximum

amount others can contribute. Our team can offer

guidance on what kinds of cash gifts can be used

for down payment.

3. ASK THE HOME SELLER TO CONTRIBUTE

If you pay the seller ’s asking price, they might be will ing to

credit the closing costs, which can leave more funds free

for your down payment. Talk to your lender first to find out

about your options.

4. DIRECTLY DEPOSIT A PORTION OF YOUR PAYCHECK

INTO A SAVINGS ACCOUNT

It could take up to two years to set aside enough savings for

a down payment. But Time Money estimates based on the

median household income of $61,000 and an average home

price around $252,000, you could get an FHA loan with a

minimum 3.5% down after saving 10% of salary for just 18

months. If you’re able to contribute $200 every two weeks,

you’d save $5,200 after a full year (excluding interest) and

could qualify for a low-down payment program.

In addition to asking your lender about low- or no-down payment programs,

consider these cash-saving opportunities.

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ASKING FOR A LITTLE EXTRA AT THE CLOSING TABLE HAPPENS MORE THAN MANY

BUYERS REALIZE. IF YOU’RE IN THE PROCESS OF BUYING A NEW HOUSE — AND

ESPECIALLY IF YOU’RE A FIRST-TIME BUYER — YOU COULD ASK THE SELLER TO COVER

THE COST OF YOUR CLOSING.

HOW MUCH WILL CLOSING COST?

Your lender can go over specif ic c losing costs in detai l , but here are some bal lpark f igures:

• Freddie Mac est imates c losing fees as 2 to 5 percent of the purchase price

• Based on this percentage, Zi l low est imates the average buyer pays about $3,700[1]

Closing costs are a lso referred to as sett lement fees. This is the amount of money a buyer needs

to pay to take out a mortgage. Closing costs may be charged by any or a l l people involved in a

purchase, l ike a mortgage lender, a realtor, and other third-party ser vices

CLOSING COSTS PAY FOR:

• Appraisal fees

• Attorney fees

• Credit report fees

• Government recording fees

• Lender or ig inat ion fees

• Sur vey fees

• Tax ser vice fees

• T i t le ser vice fees

• Under writ ing fees

Source: 1) Z i l low.com – What are c losing costs and how much are they? Source deemed rel iable but not guaranteed.

THE SECRET TO SAVING $3,700 AT CLOSING

THE GOOD NEWS?

Asking a sel ler to pay these costs could save you

thousands. Even better news? A lot of homebuyers are

doing i t! Sel lers who agree to pay a l l or a port ion of

c losing costs can help c lose the deal quicker.

It never hurts to ask if the seller can help with

closing costs. Talk with your loan off icer about the

right approach and if there are l imits to seller-paid

closing costs based on the loan program. Your loan

off icer can also discuss down payment and closing cost

assistance programs that might be avai lable to you.

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HOW TO HOUSE-HUNT

LIKE A BOSS

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THINK ABOUT WHAT’S IMPORTANT TO YOU.

Sit down and write down ever ything you could possibly want in a home. Then,

order the l ist according to importance. Once you start searching for a home, you

won’t feel over whelmed by the many opt ions out there.

SEARCH!

Work with a local realtor to f ind homes in the area. You can also search by z ip

code, pr ice range, and other cr i ter ia in our LoanFly® app. I f you need a realtor

referra l , p lease contact our team.

COMPARE AND CONTRAST.

Refer to the l ist you put together when you check out homes. Consider the pros

and cons of each house you vis i t . You can also use the checklist on the next

page to keep your thoughts about each home together.

20

COMPARE THESE 14 FEATURES TO

SEE WHICH HOUSE STANDS OUT

PROPERTY ADDRESS:

DATE SEEN:

1. PRICE:

2. LOCATION AND SCHOOL DISTRICT:

3. MONTHLY P&I (PRINCIPAL & INTEREST PAYMENT):

4. SQUARE FOOTAGE:

5. NUMBER OF BEDROOMS:

6. NUMBER OF BATHROOMS:

7. SIZE OF KITCHEN/SPECIAL FEATURES:

8. SIZE OF DINING ROOM/SPECIAL FEATURES:

9. SIZE OF LIVING ROOM/SPECIAL FEATURES:

10. SIZE OF BACKYARD/SPECIAL FEATURES:

11. GARAGE OR STORAGE SPACE:

12. APPLIANCES:

13. ACCESS AND COMMUTING:

14. UPGRADES NEEDED:

RATE THIS PROPERTY ON A SCALE OF 1 (NOPE!)

TO 5 (WHEN CAN I MOVE IN?):

Use this quick rate sheet to rank ever y home you vis i t .

21

wor

k w

ith

a r

ealt

or

B U Y I N G A H O M E I S A N E X C I T I N G T I M E !

IT CAN ALSO BE CHALLENGING. A REALTOR CAN GIVE YOU THE SUPPORT

YOU NEED SO YOU CAN ENJOY YOUR HOME BUYING EXPERIENCE.

Ready to !nd your dream home? We have worked with some of the most dedicated

and experienced realtors in the market. Please let us know if you’d like a referral!

Here are some of the many bene!ts of working with a realtor.

REAL GUIDANCE FROM A

REAL PERSON

While there are tons of homebuyer resources out

there, a good realtor can help you make sense of all

that information. They can point out the pros and

cons of homes you tour. They can also help you

understand the buying process and exactly what

to expect along the way.

MORE HOMES TO

CHOOSE FROM

A realtor has access to the Multiple Listing Service

(MLS), which offers thousands of the most up-to-date

listings of available homes. You’ll have more options

to easily and quickly !nd the right home for you.

CLOSE WITH

CONFIDENCE

An experienced realtor can

negotiate on your behalf, prepare

your purchase contract, and resolve

issues that could affect your

closing. With your permission, we

can also send your realtor loan

status updates to keep your closing

on track.

NO COST TO YOU

Typically, the seller will pay the

realtor who helps you buy a home.

22

10 HOMEOWNERSHIP

FACTS

WHETHER YOU ARE BUYING

A HOUSE FOR YOUR FAMILY,

AN INVESTMENT PROPERTY

FOR FUTURE RESALE, OR

A SECOND HOME, THERE

IS A LOT TO LEARN ABOUT

HOMEOWNERSHIP.

To get the most out of your purchase, you

need to have all the facts. Here’s some great

information to help you be a prepared and

informed homeowner.

1. YOUR HOME’S EQUITY IS IMPORTANT.

If the value of your home is worth more than you owe,

you can use this to leverage investment properties, or

get cash for other expenses.

2. WHEN BUYING A HOME, BE SURE TO

CONSIDER YOUR LONG-TERM PLANS.

While the cost of a home is a big factor, you should

also think of your purchase as an investment. How can

your home achieve your goals? Discuss your ultimate

plans with your lender and how your mortgage could

serve you down the road.

23

3. ACCORDING TO THE NATIONAL

ASSOCIATION OF REALTORS,

THE MEDIAN AGE OF FIRST-TIME

HOMEBUYERS IS 31.

More young professionals are able to

purchase homes for their families, and

more affordable housing options like

planned communities and townhomes

have developed across the nation.

4. RISING RENTAL COSTS ARE A

COMMON OCCURRENCE.

As leases are renewed, owners of rental

properties will pass rising tax, insurance,

utility, and maintenance costs on to

their tenants. Like houses, rental units

are equally susceptible to rising

occupancy costs.

5. HOMEOWNERS WITH A STRONG

SENTIMENTAL ATTACHMENT TO THEIR

HOME OFTEN PRICE THEIR PROPERTY

WITH UNREALISTIC EXPECTATIONS.

As you’re house hunting, check

neighborhood comparable sales to make

sure you’re getting a fair deal.

6. DON’T FORGET THAT MORTGAGE

INTEREST AND PROPERTY TAXES ARE

INCOME TAX DEDUCTIBLE.

Be sure to take advantage of this, as it can

save you hundreds of dollars per year.

7. CAUTIOUSLY CONSIDER ALL HOME IMPROVEMENTS.

While many homeowners want to update their house to satisfy

their personal taste, be careful not to over-improve, as it can be an

expensive mistake. Improvements such as garages converted to

extra rooms or space designed to accommodate one type of family

could negatively affect your chances of selling.

8. WAITING ON THE MARKET TO CHANGE IS

NOT ALWAYS A GOOD IDEA.

Some buyers may put off purchasing a home in the hopes that prices

will go down. But the real estate market is unpredictable, so it’s just

as likely for prices to go up.

9. THERE’S NEVER A PERFECT TIME TO SELL A HOUSE.

Whether it’s a “buyer’s market” or a “seller’s market,” most people

will be on both ends of the process. As a seller, you might get more

for your home, but you are likely to have to pay more for the next

home you purchase.

10. A GOOD REAL ESTATE AGENT CAN SELL HOMES QUICKLY,

EASILY AND AT THE RIGHT PRICE.

While some people have been successful selling their home without

a realtor, it is a large risk to take. A knowledgeable realtor can protect

your interests during the process when it’s time to sell your home.

2424

WE KNOW EASY. WHAT WOULD YOUR LOAN OFFICER DO? HERE ARE 8 INSIDER HOME BUYING TIPS.

8 b

uy

ing

tip

s

1. ONLY SPEND WHAT YOU CAN AFFORD.

If you start looking at houses without knowing what

you can and want to afford, you could fall in love with a

house that’s above your price range. Prequalifying !rst

can help set your budget, as can applying a good rule

of thumb: Reserve 25% of your income toward your

home payment. Spending a quarter of your income on

your mortgage payment should safeguard you from

any unexpected !nancial changes.

2. DON’T FORGET ABOUT THE APR.

Every mortgage lender can charge different fees,

which is why it helps to shop around. On top of that,

you’ll also be seeing an APR (annual percentage

rate) that’s probably going to be higher than the !rst

interest rate on the loan. This APR includes your

mortgage interest rate, plus a few other charges like

loan points and fees. Comparing APR to APR (apples

to apples) among lenders is the most effective way to

compare the numbers on your loan.

3. TALK TO YOUR LOAN OFFICER BEFORE

ACCEPTING GIFT FUNDS FROM A FAMILY MEMBER.

Our team can help you and the donor meet

documentation requirements for the gift funds.

4. BE SURE THAT YOUR EARNEST MONEY CHECK

COMES FROM FUNDS IN YOUR OWN CHECKING

OR SAVINGS ACCOUNT AND ARE WRITTEN ON

YOUR OWN PERSONAL CHECK.

Don’t let anyone else pay the earnest money for you.

If this could be an issue, please contact your

loan of!cer immediately.

5. DON’T CHANGE YOUR JOB OR

YOUR PAY STRUCTURE DURING THE

FINANCING PROCESS.

Employment or income changes during the

process require re-veri!cation and could

delay your mortgage approval.

6. DON’T APPLY FOR A NEW LINE OF

CREDIT OR LOAN.

Loan of!cers are required to pull a

refreshed credit report within !ve days

of closing that will update your balances

and report any new accounts since your

credit was originally pulled. Your loan

approval could be jeopardized if you have

incurred new debt. Likewise, avoid making

large purchases and charging up existing

balances during the home loan process.

7. MAKE ALL PAYMENTS ON TIME.

Keep all of your accounts current to ensure no late payments

appear on the refreshed credit report before closing.

8. REMEMBER THAT WE ARE HERE FOR YOU!

Call us if you have any questions along the way. We want to

be your resource and to make your home-buying process as

smooth as possible.

1234 Street Address, Suite 123 / City, State 12345

LOAN OFFICER / LOAN OFFICER TITLE / NMLS 1234567

O 123.456.7890 / C 123.456.7890

LOANOFFICER@HOUSELOAN.COM / WWW.LOANOFFICER.COM

WE HAVE SEVERAL LOCATIONS IN BOTH WASHINGTON AND OREGON TO SERVE YOU. PLEASE CHECK OUT OUR WEBSITE AT PRIORITYLENDING.COM FOR A LIST OF LOCATIONS.

PRIORITY HOME LENDING, LLC | 12900 NE 180th Street, Suite 140A | Bothell, WA 98011 | Corporate Phone: 855.648.4663 | WA CL-1031451 (NMLS 1031451) | OR ML-5209. Licensed under the

Oregon Consumer Finance Act. CARMLA 41DBO-71795. Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act. This information is meant to be

a guide showing the !nancing process. Not all transactions may follow the illustration or steps listed due to the requirements and process speci!c to the type of home loan a borrower quali!es for.

Not a commitment to lend. Borrower must meet quali!cation criteria. Equal Housing Opportunity.