KEYS TO YOUR NEW HOME

OPENDOORS

www.alpinemc.comwww.johnlemos.com

PICK A LOTIn a great

community you select yourself.

PRE-PROCESSINGYour mortgage

advisor requests all items from you and prepares files for mortgage loan preapproval.

QUICK FACTDid you know you can

finance all of your options on your loan?

CONTRACTSigned sales

contract between you and the builder is provided to the escrow company and our team.

APPLICATIONMeet with your

mortgage advisor to complete and sign your loan

application and initial disclosures.

ESCROWReceive executed contract from all

parties with prelim on your lot

QUICK FACTAn underwriter will review your files to ensure they meet

investor requirements.

UNDERWRITINGProcessor turns in completed file to

review. This usually takes 48-72 hours.

PROCESSINGProcessor receives

and reviews documents.

Appraisal, title, insurance, tax

certificates, and verifications are

ordered. You need to order

homeowner’s insurance.

CLOSING DEPARTMENTClosing documents are finalized and sent to title company. This usually

takes up to 24-48 hours.

HUDEscrow company draws settlement statement to be

approved by lender agents.

FINAL WALK-THROUGHBorrowers do a final walk-through of the property to approve home condition prior

to signing closing documents.

ESCROW COMPANYThe escrow company

compiles all paperwork and draws up

documents to be signed by all parties.

CLOSINGParties sign closing

documents and meet funding conditions.

QUICK FACTHome ownership allows for greater control over your

living environment. Paint, decorate and rearrange to your heart’s content!

PREQUALIFYWe prequalify you and review your credit report to

ensure we are as accurate and helpful

as possible.

FUNDINGEscrow company requests funding

and recording from the lender. Once

complete, the new owner takes possession.

PREAPPROVALUnderwriter provides a list of

closing conditions to us and to the processor. We arrange for collection of closing conditions

from all parties.

LOANAPPROVED!

You’re almost home!

START

HOMEOWNER’SPURSUIT

— real estate agent

— mortgage advisor

— title and escrow officers

— insurance agent

— appraiser

KEY CONTACTS INVOLVED IN YOUR HOME PURCHASE

Home ownership allows for greater control over your living environment. Paint, decorate and

rearrange to your heart’s content!

DO

— do figure out your future monthlyexpendituresWhen you speak with your mortgage advisor, you’ll discuss the monthly payment you can afford, but that’s not the only home-related expense to keep in mind.

You should expect to spend between 2 and 3 percent of your home’s value on upkeep, repairs and maintenance each year.

— do shop aroundAsk questions. There are many local insurance agents and mortgage brokers who will be more than happy to discuss your journey to home ownership with you. Being thorough will leave you satisfied with your choices.

— do start the loan processSome Realtors® may require you to have begun the loan process before they will show you homes.

Contact your mortgage advisor to get started on the loan process today!

— do check your credit report and report any inaccuraciesDespite some commercials you may see on television, AnnualCreditReport.com is the safest way to get free credit reports from the three reporting bureaus.

— do check your FICO scoreThe general minimum FICO score to qualify for a mortgage is around 640; however, anything above 700 may earn you a lower interest rate.

Some loans backed by the federal government allow for scores as low as 580. FICO requirements often change with shifts in the market so ask your mortgage advisor to go over your options with you.

— do save, save, saveDown payment requirements vary with different lenders and programs - and in some cases no down payment is required - but with any down payment under 20 percent, you will most likely need to purchase private mortgage insurance (PMI).

You should also plan on saving to cover points and closing costs, even if you may be able to negotiate to have the seller pay them in part or in full.

Depending on the size of your down payment, in order to satisfy your lender you may also need to demonstrate a reserve fund with several months’ worth of payments.

DON’T

— don’t use charge cards excessivelyor make late paymentsThis could damage your credit score and change the outcome of the loan process.

— don’t spend money you have setaside for closing

— don’t omit debts or liabilities fromyour loan application

— don’t originate any inquiries onyour credit

— don’t make large or unusualdeposits over $500Without first checking with your mortgage advisor.

— don’t change bank accounts

— don’t co-sign a loan for anyone

— don’t apply for any new credit untilyou are in your new homeSoliciting new credit applications and changing your balance of available credit can both hurt your FICO score.

— don’t forget about governmentbacked loan programsThose in certain income groups, whose only struggle is with a large down payment, may qualify for a FHA loan at less than 5 percent down or VA loan with no down payment required.

— don’t forget that your mortgagepoints and interest may be tax-deductibleBut don’t build those deductions into your monthly costs. Check with your CPA for current tax laws and deductions.

— don’t miss any payments!You’ve already put in too much work to hurt your credit rating at the very end of the process.

— don’t change jobsBecome self-employed, or quit your job. You should keep your current position and will need to prove two years of employment.

— don’t make any large purchasesSuch as an automobile, furniture, washer/dryer or any large appliance.

What is financial freedom? Maybe the best way to express the concept of financial freedom is to contrast it with financial survival. When financial survival is your goal, you’re not really in control of what happens – you’re constantly reacting to situations and obligations. But when you have financial freedom, you’re not subject to the same fluctuations – things can happen, even bad things, but you’re prepared and in a position where they won’t throw your financial life in chaos.

— step one: develop a cash cushion

— step two: free yourself from debt

— step three: create significant liquid funds

— step four: pay off your home

Your real estate agent can help you compare prices on homes in the area and can

negotiate on your behalf.

HOMEBUYER’S PROCESS

— mortgage prequalification

— providing documentation

— shopping for a home

— making an offer

— negotiating final sale

— the financial process begins

— the home inspection

— the home appraisal

— getting homeowner’s insurance

— underwriting and risk assessment

— loan conditions

— final approval of your loan

— getting closing in order

— the final walk-through

— signing day

— getting the keys

— moving day!

While every individual situation is unique, our goal is to assist you in making smart choices by

selecting a mortgage that improves your net worth and enhances your financial safety.

FAQs

— what are the benefits of owning vs. renting?If you own a home, you can receive tax breaks beyond the standard deduction available to renters, since your interest, property taxes and mortgage insurance are tax deductible. Some of your closing costs are deductible as well. You can choose a fixed-rate mortgage, which sets your monthly principal and interest payment at the same amount for the life of the loan. You also build equity in your home value as you pay down the principal and your home increases. Home equity is a primary source of wealth for many Americans, according to Freddie Mac.

— how long will it take to close my loan?Thirty to forty five days depending on appraisal and underwriting turn times.

— what do I do after my offer on a house is accepted?

Contact your lender to let them know the good news, order a home inspection and make sure your lender has all the income documentation they need to get your file to the underwriter.

— how many offers on a house can I make at one time?

You should focus on one offer at a time.

— I am changing occupations; what does that mean for my loan application?

You should keep your current position as you will need to prove two years of employment.

— when do I make my first mortgage payment?

If your closing date, for example, is March 15, you will be charged prorated daily interest from March 15 through March 31 on your closing statement. Your first mortgage payment will be May 1 because that payment will pay the interest for April.

— what is an example of a first mortgage payment calculation?

Let’s say you are borrowing $200,000 at 5 percent interest. Your monthly payment will be $1,073.64, payable in equal monthly installments for 30 years.Your daily interest rate charge (for the time period prior to 30 days before the first payment) is figured by taking $200,000 times the interest rate of 5 percent. Then divide by 12 months ($833.33), and again by 30 days.Your daily interest rate is $27.78. If you are closing on March 15, you will owe 16 days of interest or $444.48, which will be charged on your closing statement as a closing cost.When you make a payment of $1,073.64 on May 1, it will pay the interest for April as follows:$1,073.64 minus $833.33 interest for April equals $240.31 principal reduction. Subtract $240.31 from $200,000, and your new unpaid balance as of May 1 is now $199,759.69.It may seem like you’re getting a free ride when you close on March 15 and your first mortgage payment begins on May 1, but you really aren’t.

This example does not include taxes and insurance. These may or may not be included in your payment, depending on your loan program or down payment amount.

©2014 A division of Pinnacle Capital Mortgage Corp. | Equal Housing Lender | NMLS 81395 | WA CL-81395 | AZ BK-910890Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act. Regulated by the division of Real Estate Colorado.

John LemosNMLS 613321Mortgage AdvisorAlpine Mortgage PlanningA division of Pinnacle Capital Mortgage Corp.Cell (951) 256-0812Office (909) 657-2120Fax (800) 400-4718www.johnlemos.com