Don’t show them a home Don’t show them a home until they have the key!until they have the key!

The key is being fully approved for a mortgage with the L&G Key-Card™

It’s the next best thing to walking in with a suitcase full of cash!

Campbell Communications Campbell Communications SurveySurvey

May, 2004

In a survey of almost 2000 real estate agents, they concurred that 16% of real estate transactions were disrupted by mortgage related problems.

Separately they concurred that 26% of conditional loan approvals issued by mortgage companies turn out to be invalid. Most of the culprits were mortgage brokers!

Benefits of the Key-CardBenefits of the Key-Card(To your buyer)

1. The Key-Card gives your client the edge over other buyers that simply have a conditional loan approval.

2. Even when not competing against other buyers, the Key-Card can still save your clients thousands of dollars because they can be more aggressive with their offer.

3. Your buyer has peace of mind knowing that they will not risk losing their earnest deposit because they received verified loan approval.

4. Your buyer can shop for a home with confidence knowing the money is there when they need it.

5. Your buyer can eliminate last minute delays that are both frustrating and costly.

6. Your buyer can take advantage of an earlier closing date which can save them money when locking their rate.

Benefits of the Key-CardBenefits of the Key-Card(to you as the real estate agent)

1. By offering the Key-Card to your buyers, you are providing a more valuable service, setting you apart from the competition.

2. By having your buyer’s income, assets and credit fully verified, you have a more loyal client, less likely to search for a home through another agent.

3. In today’s tight real estate market, the Key-Card can help secure a property by constituting a more solid offer.

Flow of a LoanFlow of a Loan

New Application

No Property

With Key-Card

Contract with

Property

No Property

Without Key-Card

(stays in U/W Department)

U/W Consultants Processors

(a)Verify Assets, Employment

etc.

(Obtain satisfactory info from borrower

within 5 days to issue Key-Card within 48 hrs.)

Normal Flow

(b)Order Title,Insurance,

Flood Cert, and Appraisal

Borrower

Contract Accepted

Docs drawn within 48 hrs of receipt of all (b) items

Closing

Remain in touch

with Borrower

Remain in touch

with Borrower

CONDITIONAL LOAN APPROVALTHE PRINTED PORTION OF THIS FORM HAS BEEN APPROVED BY THE ARIZONA ASSOCIATION OF REALTORS® (“AAR”).

1. The undersigned o Mortgage Banker o Mortgage Broker ("Lender") has made a preliminary review of the ability of:

2. _________________________________________________________________ ("Buyer") to qualify for a real estate loan.3. Based on the information provided, Buyer is conditionally approved for a real estate loan on the following terms:4. Amount requested: $ __________________________________________________________________________________5. Loan Program: FHA VA Conventional n Other, explain: ____________________________________________6. Interest Rate: ______________________ Buyer o has o has NOT locked in interest rate.7. If interest rate is locked, expiration date:____________________________8. Origination Fee/Points:___________________________ Discount Points:_________________________________________9. Note: AAR Contracts require a Conditional Loan Approval (“CLA”) based on a loan application and Trimerged10. Residential Credit Report (“TMRCR”).11. Is this Conditional Loan Approval based on the following?12. Yes No13. A completed loan application. If yes, date completed: _______________________________14. Review of a Trimerged Residential Credit Report (TMRCR).15. If loan program is a FHA or VA loan and an AAR Residential Resale Purchase Contract has been executed, a16. determination that the loan costs Seller agrees to pay pursuant to lines 80-82 of the Contract are sufficient to obtain17. the loan? Not Applicable18. Determination that Buyer’s credit information meets guidelines of loan program referenced in line 5.19. Determination that Buyer’s income/ratios are within lending guidelines for this loan program.20. Identification of the Buyer’s ability to repay the loan. Explain ______________________________________________21. Identification and verification of the source of funds necessary to close, which is ______________________________22. Additional questions:23. Yes No24. Could Buyer’s source of funds necessary to close cause a delay in closing?25. If yes, explain:______________________________ _ _ _ ________________________________________________26. Has Buyer received an automated loan approval?27. Has Buyer received a Good Faith Estimate?28. Has the appraisal fee been collected?29. Has the appraisal been ordered? If yes, date ordered _________________________________30. Buyer is is not relying on the sale or lease of property to qualify for this loan.31. List all conditions to loan approval:______________________________________________________________________32. ____________________________________________________________________________________________________33. ____________________________________________________________________________________________________34. ____________________________________________________________________________________________________35. ____________________________________________________________________________________________________36. This report is not a "commitment" or "final approval" of Buyer’s ability to qualify for a real estate loan, which may be affected37. by any material change in the Buyer’s financial status from the information provided or by adverse property conditions.38. Company Name: ______________________________________________ License Number:__________________________39. Address: ____________________________________________________________________________________________40. ____________________________________________________________________________________________________41. Phone: ____________________________________________________ Fax:______________________________________42. Loan Officer: ____________________________________ Title: ________________________________________________43. Signature:____________________________________________________ Date: ___________________________________

44. BUYER REPRESENTS THE INFORMATION PROVIDED TO LENDER IS COMPLETE AND A C C U R ATE TO THE BEST OF BUYER’S45. KNOWLEDGE. BUYER AUTHORIZES LENDER AND A N Y BROKER TO MAKE THE ABOVE INFORMATION AVAILABLE IN CONNECTION46. WITH THE BUYER’S PURCHASE OR ATTEMPT TO PURCHASE REALP R O P E R T Y AND ACKNOWLEDGES ARECEIPT HEREOF .

47. BUYER’S SIGNATURE BUYER’S SIGNATURE

48. DATE DATE

This form is available for use by the entire real estate industry. The use of this form is not intended to identify the user as a REALTOR®. REALTOR® is a registered collective membershipmark which may be used only by real estate licensees who are members of the NATIONALASSOCIATION OF REALTORS® and who subscribe to its Code of Ethics.

©ARIZONAASSOCIATION OF REALTORS® 2002 • This Form Available Through Your Local Association of REALTORS® • Form CLACONDITIONAL LOAN APPROVAL

THE PRINTED PORTION OF THIS FORM HAS BEENAPPROVED BY THEARIZONA ASSOCIATION OF REALTORS® (“AAR”).

Borrowers Loan Approval1 L&G Mortgagebanc (Lender) has approved a loan based upon the verification of credit, assets and income of:

2 (Buyer) for a real estate loan.

3 Based upon supporting documentation provided, Buyer is approved subject to the following terms:

4 Amounted Approved for: $

5 Loan Program:

6 Approved for interest rate: Between and and is Floating.

7

8 Origination Fees: Discount Points:

9 Note: AAR Contracts require a Conditional Loan Approval (“CLA”) based on a loan application and Trimerged

10Residential Credit Report (“TMRCR”). This actual “Borrowers Loan Approval” substitutes the required (CLA).

11This Borrower Loan Approval is based on all of the following:

12Yes No

13 Completed loan application Date:

14 Review of a Trimerged Residential Credit Report

15N/A N/A N/A

16N/A N/A N/A

17N/A N/A N/A

18 Buyer’s credit has been verified and meets guidelines of referenced loan program (Line 5)

19 Buyer’s income / ratios have been verified and meet guidelines for this program

20 Buyers income and ability to repay the loan have been verified

21 Buyers assets and source of funds have been verified

22Additional Questions:

23Yes No

24 Could Buyer’s source of funds necessary to close cause a delay?

25 If Yes, explain:

26 Has Buyer received an automated loan approval?

27 Has buyer received a Good Faith Estimate?

28 Appraisal fee has been authorized

29 Has Appraisal been ordered? If yes, date ordered:

30

31

32

33

34

35

36This is a loan commitment valid for 90 days, subject to no adverse property conditions, insurance of subject

37property, any contingencies in lines 30-35 and no material change in borrower’s financial status prior to closing.

38L&G Mortgagebanc

398737 E Via De Commercio

40Scottsdale, AZ 85258 License Number:

41Phone: Fax:

42Title:

43Signature: Date:

44BUYER REPRESENTS THAT THE INFORMATION PROVIDED TO THE LENDER IS COMPLETE AND ACCURATE TO THE BEST OF

45BUYER’S KNOWLEDGE. BUYER AUTHORIZES LENDER AND ANY BROKER TO MAKE THIS INFORMATION AVAILABLE IN

46CONNECTION WITH THE PURCHASE OR ATTEMPT TO PURCHASE REAL PROPERTY AND ACKNOWLEDGES A RECEIPT HEREOF.

47Buyers Signature: Buyers Signature:

48Date: Date:

Add L&G logo Borrowers Loan Approval

1L&G Mortgagebanc (Lender) has approved a loan based upon the verification of credit, assets and income of:

CONDITIONAL LOAN APPROVAL

1. The undersigned o Mortgage Banker o Mortgage Broker ("Lender") has made a preliminary review of the ability of:

Line 1 ComparisonLine 1 Comparison

Borrowers Loan Approval

3. Based upon supporting documentation provided, Buyer is approved subject to the following terms:

CONDITIONAL LOAN APPROVAL

3. Based on the information provided, buyer is conditionally approved for a real estate loan on the following terms:

Line 3 ComparisonLine 3 Comparison

9. & 10

Note: AAR Contracts require a Conditional Loan Approval (“CLA”) based on a loan application and TrimergedResidential Credit Report (“TMRCR”).

Note: AAR Contracts require a Conditional Loan Approval (“CLA”) based on a loan application and Trimerged Residential Credit Report (“TMRCR”). This actual “Borrowers Loan Approval” replaces the required (CLA).

18. Determination that Buyer’s credit information meets guidelines of loan program referenced in line 5.(Need not be filled in)

Buyer’s credit has been verified and meets guidelines of referenced loan program (Line 5)

19. Determination that Buyer’s income/ratios are within lending guidelines for this loan program. (Need not be filled in)

Buyer’s income / ratios have been verified and meet guidelines for this program

20. Identification of the Buyer’s ability to repay the loan. Explain (Need not be filled in)

Buyers income and ability to repay the loan have been verified

21. Identification and verification of the source of funds necessary to close, (Need not be filled in)

Buyers assets and source of funds have been verified

Line 9, 10, 18 - 21 ComparisonLine 9, 10, 18 - 21 Comparison

36. This report is not a "commitment" or "final approval" of Buyer’s ability to qualify for a real estate loan, which may be affected

This is a loan commitment valid for 90 days, subject to no adverse property conditions, insurance of subject

Go back to CLA vs. BLA form

37. by any material change in the Buyer’s financial status from the information provided or by adverse property conditions.

property, any contingencies in lines 30-35 and no material change in borrower’s financial status prior to closing.

Buyers are more likely to stay with you when Buyers are more likely to stay with you when committed to a loan!committed to a loan!

ADVANCE FEE AGREEMENTPer this Agreement Applicant/s have authorized the following fees to be paid to L&G Mortgagebanc:□ Credit Report Fee: $ _____ (Paid by Electronic Credit Card)□ Processing Fee: $ _____□ Appraisal: $ _____ (When Purchase Contract is received and Home Inspection period has expired)

□ Other Fee: $_____ Description: _______________________

Payment Method□ Credit Card: Please charge my □ Visa □ MasterCard □ American Express

Cardholder Name: _______________________ Address: _________________________________State:_____ Zip:______

Card Number: ______________________________ Expiration Date: ____________________OR

□ Check/Money Order: Enclosed is my check/money order made payable to L&G for the above fees.

Processing Fee. By paying Processing Fees I/we have requested that L&G perform the necessary approval process for the issuance of an L&G Key-Card to me/us. Processing Fees are deemed earned by L&G at time of application and are non-refundable, unless otherwiserequired by law.

Appraisal/Credit Report Fees. I/we may be due a partial refund or required to pay an additional amount to cover actual appraisal and/or credit report costs. I/we understand that these fees are non-refundable unless otherwise required by law. In the event of a purchase L&G is authorized to charge my credit card for the appraisal when and only when L&G receives my purchase contract and the home inspection period has expired. If my/our loan amount changes after I/we have paid any fees, L&G will adjust the fees accordingly and any difference will be creditedtoward or deducted from my closing costs. When my/our loan closes, all fees collected from me/us will be credited to my/our total closing costs and fees. I/we understand that if I/we withdraw my/our loan request, fail to provide information L&G requests within the required time frames, provide inaccurate information, or do not close before the expiration of my loan commitment; the fees collected will be non-refundable, unless otherwise required by law. If I/we fail to qualify for a loan, L&G will refund the fees collected except for any amount that has been paid by L&G to a third party for expenses incurred on my/our behalf (such as an appraisal fee).

Don’t show them a home Don’t show them a home until they have the key!until they have the key!

The key is being fully approved for a mortgage with the L&G Key-Card™

It’s the next best thing to walking in with a suitcase full of cash!