Buying A Home

Question 1

Why do people buy a home?

Answer 1

Ready to own
Getting married
Starting a family
Wanting more space
Relocating for a job
Needing less space (kids leave for college)
Purchasing vacation home
Retiring
Divorcing

Question 2

Down Payment Grant

Answer 2

Offers eligible home buyers 3% of the home price purchase, up to $10,000, which ever is less, to help with down payment

Question 3

America’s Home Grant

Answer 3

Eligible clients can receive up to $7,500 that does not have to be repaid.
- can be used on non recurring closing costs, such as title insurance and recording fees or buy down interest rate

Question 4

Home Buying Tips

Answer 4

20% or over on a home might lower monthly payment by avoiding private mortgage insurance (PMI)
- PMI: special type of insurance provided by private insurers to protect a lender against loss if a borrower defaults. Cost of insurance is added to the payment when required by a lender.

Loan payments can start as low as 3% depending on loan product

Question 5

Stage 1: preparing your finances

How is my credit score/credit history?

Answer 5

Timeliness of payments
Amount owed
Length of credit history
Types of credit

Effects eligibility for loan programs and products

Question 6

Stage 1: preparing your finances

What fees and expenses are involved in buying a home?

Answer 6

Down payment
Moving expenses
Closing cost
Emergency repairs

Question 7

Stage 2: how much can you afford?

Answer 7

Pre-qualification: estimates clients borrowing power based on financial situation. Not a commitment to lend. Additional information will be required once a property is identified to get final lending approval.

Pre-approval: B of A offers a fully underwritten and approved application contingent upon no outstanding credit conditions

Question 8

Stage 3: finding a property

Answer 8

Bank of America Real Estate Center: BofA.com

- saves time and energy by narrowing the search to homes that fit pre-qualification criteria

Question 9

Stage 3: Finding a Property

Negotiation

Answer 9

1. Property Identified
2. Evaluate fair market value
3. Buyer makes offer
4. Seller accepts offer OR the seller can make a counter offer which begins negotiation process with the buyer
5. Buyer and seller signs purchase contract
6. Buyer submits Earnest Money Deposit (EMD) with signed contract
   - —- Earnest Money- “Good faith” Deposit
   - ——— these funds are applied to overall down payment at closing

Question 10

Stage 4: after offer is accepted

Answer 10

LS primary contact for client
Client provides the lender with a signed copy of the purchase contract
- signed by buyer and seller
Client receives disclosures including loan estimate, ITP and buyer identification
Client verifies income, assets and other documentation requested by the underwriter

Question 11

Stage 5: closing process

Answer 11

Closing disclosures 3 days prior to closing

• allows client to review final costs of the loan and obtain funds required for closing
• 3-day waiting period client signs all loan documents

Question 12

Stage 5: closing process

Closing/Escrow Agent

Answer 12

Closing/Escrow Agent facilitates purchase closings

• informs client what they need to bring to closing
• —- valid ID
• —- additional funds for down payment (cashiers check or wire trans)

Escrow agent is decided by seller