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First-Time Homebuyers Guide

Samuel Fowler | Reliant TeamLoan O�cer NMLS# 1359894Direct: 918.901.9352 Fax: 918.901.9369Cell: 918.282.7000Samuel.Fowler@SupremeLending.comwww.ReliantTeam.Loan8282 S Memorial Drive, Suite 301 | Tulsa, OK 74114

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On your way to your first home?• Buying a home is a big step.• Choose a home and �nancing program that’s right for you.• Look into various mortgage options and what they cost.• Select a loan program that �ts your budget, lifestyle and goals.

Why buy instead of rent?• Interest Payments may be Tax Deductible* • Potential to Build Equity through your Own Mortgage Payment • May be Able to Capitalize on Prospective Market Value Increases • Invest in your Own Financial Future not the Landlord’s *Consult your tax adviser regarding deductibility of interest.

How to begin? It’s easy as 1,2,31. Apply for a mortgage.2. Put together a personal “home team” of experts: - An experienced real estate agent or builder - A knowledgeable loan o�cer3. Learn more about the home buying process.

The BasicsHow Much Can I afford?

• To determine your maximum mortgage amount, lenders look at: - Your credit history - Available cash for down payment and closing costs - Your income - Your existing debt and �nancial obligations• Your maximum mortgage amount, plus your planned down payment, equals your home-purchase price range.

How Important is my Credit?• A history of paying monthly payments on time indicates you are likely to make mortgage payments on time.• Your credit score, (e.g., a FICO score) can be a factor in the kind of mortgage program for which you may qualify.• Your credit history can also a�ect: - The amount required for a down payment - The amount of money you can borrow in relation to your income - The interest rate you are o�ered• If you haven’t already, obtain a copy of your credit report.

How Much Do I Need for a Down Payment?• Today’s �exible mortgage programs make down payments less of a challenge.• Some homebuyers may be eligible for down payment assistance.• You may be able to buy a home with very low or no down payment.• Loans with down payments of less than 20% typically require mortgage insurance.• Most programs also require funds equal to 1-2 month’s loan payments in reserve after closing.

What About Closing Costs?• Generally, closing costs and prepaid escrows equal between 3% and 7% of the home purchase price.• “Prepaids” must be collected at closing to cover the future month’s taxes, interest and insurance.• Most loan programs do not allow you to �nance your closing costs.• Some programs allow all or partial closing costs to be paid by home sellers or other sources.

How Large of a Loan Can I be Approved for?• Lenders use a debt-to-income ratio to determine the loan amount for which you may qualify.• Typically, the anticipated housing payment is compared to gross earnings and debt.• Many loan programs o�er expanded guidelines that qualify applicants for higher loan amounts.• Once you know your maximum loan amount, it’s up to you to decide if it’s right for you.

What Does My Mortgage Payment Include?• Usually your monthly mortgage payment is made up of four amounts – often referred to as PITI: - Principal - Interest - Taxes - Insurance• Certain funds may be held in an escrow account to pay tax and insurance bills, as they come due.

Government Loans• Government loans are backed by federal or state agencies. In general, they answer the needs of �rst-time homebuyers by o�ering: - More �exible credit guidelines - Allowance for smaller or no down payments • Types of government loans include FHA, VA*, UDSA** and State Bond Programs. *Must be Veterans, Active Duty Personnel, Reservist, National Guard and some surviving spouses. **Property must be in an eligible area for the USDA Loan Program.

Conventional Loans• Conventional* Loans, which are not backed by the government, suit the needs of both �rst-time and move-up homebuyers. • Types of conventional loans include: -Conforming (loan amounts up to $424,100) - Jumbo (loan amounts over $424,100) *Conventional loan limits in Hawaii and Alaska are higher.

Which Type of Loan is Right for Me?• Each of the home loan categories we have covered o�ers a range of �nancing options.• By working with an experienced mortgage loan o�cer, together you can select a program that best suits your budget needs and �nancial goals.

Making Choices

Make it a Point to Ask About Points• Always ask if the quoted interest rate re�ects payment of points.• One point equals 1% of the loan amount.

The Annual Percentage Rate is Key• Always ask for the Annual Percentage Rate (APR) in addition to the interest rate.• The APR is the total �nance charge on your loan, over the term of the loan.• The APR is usually higher than the quoted interest rate.• The APR re�ects the true cost of a mortgage loan as a yearly rate.

Know when to Lock and When to Float• Always ask how long a lender will guarantee the quoted interest rate.• Typically, lenders guarantee a rate for rate-lock periods of 30-120 days.• Usually, you can �oat the rate and lock in anytime up to �ve days before closing.• Ask about available rate lock and �oat options, and the cost of these options.• Will these options accommodate your home buying needs? The decision is yours.

What Can I Expect at ApplicationGive yourself the advantage: apply for a loan before beginning your home search. - Determine exactly how much home you can a�ord. - Complete the application and credit review stages of the mortgage process.• You may be asked to provide documents or letters that verify any income you want to use for loan quali�cation.• Con�rm down payment and closing cost amounts in bank or other asset accounts.• Clarify any incorrect items on your credit report.• Verify you have debts that are not listed on your credit report.

Can Somebody Please Make the Mortgage Process Go Faster• We Can! And we do it every day!• You can look forward to personal attention and a rapid and a�ordable loan process.• Our goal is close your loan in 30 days or less!

So What Happens Next• Take a four-step walk through to Closing. - Processing - Decisioning - Pre-closing - ClosingYou become the proud owner of your new home!

The Process

The Guide is Done But You’ve Just Begun• You can now approach your �rst home purchase as an educated consumer. Talk to prospective lenders about key points: - Pre-Quali�cations Process - A copy of your credit report - Down payment and closing cost options - Payment of points - Interest rate vs. APR - Rate-lock length and cost - Mortgage program o�erings• Listen carefully to answers. They’ll help you choose the home mortgage provider that’s right for you, your needs and goals.

So What Happens Next?Now that you’re on your way to a home of your own, you can count on your real estate agent or builder and your Supreme mortgage loan o�cer to be your personal “home team”.

We’re ready to work with you through each step of the process as you realize your very own American dream!

Helping Hands

EVERETT FINANCIAL, INC. D/B/A SUPREME LENDING NMLS ID #2129 (www.nmlsconsumeraccess.org) 14801 Quorum Dr., #300, Dallas, TX 75254. 877-350-5225. Copyright © 2017. This is not an offer to enter into an agreement. Information, rates, & programs are subject to change without prior notice and may not be available in all states. All products are subject to credit & property approval. Supreme Lending is not affiliated with any government agency. Intended for Oklahoma consumers only, Oklahoma Mortgage Lender License ML010193. Oklahoma Mortgage Lender License-Other Trade Name #1 ML010981.

EQUAL HOUSINGOPPORTUNITY

Samuel Fowler | Reliant TeamLoan O�cer NMLS# 1359894Direct: 918.901.9352 Fax: 918.901.9369Cell: 918.282.7000Samuel.Fowler@SupremeLending.comwww.ReliantTeam.Loan8282 S Memorial Drive, Suite 301 | Tulsa, OK 74114

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