Wells Fargo Home Mortgage believes homeownership is at the heart of personal and financial security and it is foundational to building wealth.
Inspire. Educate. Enable. Working together to help you achieve your personal and financial goals through homeownership
Is homeownership still achievable Before you start the home buying process The Home Loan Process - Preapproval What is involved in qualifying for a home loan The Home Buying Process –Finding a Real Estate Professional You’re a home owner…now what??? –Preserving Your Asset Today’s Objective
Homeownership Still Achievable Buyer’s market Rates are at an all time low Inventory still high…now moving faster Great opportunity if you are looking for an entry level home for the long term Housing and Economic Recovery Act is offering up to $8000 tax credit
Before you start the home buying process Ask yourself hard questions –Are you ready to make sacrifices? –Do you want to keep paying rent? –What is your five, ten, etc. year plan? –Do you want to be a home owner? –Are you purchasing w/ your significant other? –Do you want to purchase by yourself?
The Home Loan Process The Role Of A Home Mortgage Consultant – Review your credit report – Advise what monthly payment you qualify for (are you comfortable w/ that payment?) –Advise what purchase price your payment equals to – Present relevant financing options – Help you plan your next steps Are you ready now? Do you need to pay off credit cards, a car, take care of credit errors reported on your credit report
The Home Loan Process Fully documented home loans –Last 2 years of W2s –Last pay check stub –3 months of financial statements –Self employed Last 2 years of 1040 tax returns Audited profit and loss statement Terms – discussion of rate, program, cost Home Mortgage consultant issues a preapproval –Preapproval a must for current market
Qualifications for a home loan Debt to income ratios –Top 28% –Bottom 36% (41-45% w/ compensating factors) Entire mortgage payment PITI + MI –Principle, Interest, Taxes, Insurance, Mortgage Insurance FICO Score Programs FHA Conventional City, state, county
The Home Buying Process Benefits of working with a Real Estate Professional –They work for the buyer’s best interest –They are paid by the seller The role of the Real Estate Professional –Show you homes in the neighborhood of your choice –Discuss the details of the property Actual house Neighborhood (school district, transportation, local places of worship, etc.) –Negotiate your offer with the listing agent Purchase price Amenities (specific items of the property) Length of the escrow Interview several Real Estate Professionals How do you find a real estate professional? –Referrals from your family, friends and co-workers –Drive the area you would like to purchase in for prominent property listings
The Home Buying Process Advise home mortgage consultant of approved offer Preapproval is converted to a real deal Home Mortgage Consultant updates financial information –Typical escrow is 30-45 days –Negotiated during the offer process
You’re a home owner…now what? Take care of your investment –Not an ATM machine –Don’t become a refi-junkie Keep in touch with your insurance agent Keep in touch with your lender –If life changes happen communicate w/ your lender (loss of employment, death, etc.)
You’re a home owner…now what? Homeownership Prevention Foundation 888-995-HOPE