1. Your First Home: What You Need to Know Presented by Alex Gorodinsky

2. Who we are: 1.In business since 2004 2.Routinely rated Top 3 in Missouri Lenders on Zillow 3.Only licensed and specialize in Missouri 4.Both owners are Washington University graduates 5.Low Interest Rates and No Broker Fees 6.Specialize in First-Time Home Buyers 7.Why use a broker?

3. Advantages of owning a home 1.Stable housing costs - no landlord to raise your rent 2.Usually a good long-term investment– value will most likely increase over time 3.Deduct property taxes & interest payments from income taxes

4. Advantages of owning a home 4.Over time mortgage payments become cheaper in "real" dollars 5.Homeownership can enhance a family's sense of control over their lives & environment and promote stronger community ties 6.You can customize the home to suit your special needs & tastes more so than your rental place

5. Why Get Pre-Approved? You will know what you can afford to pay before you look for a house. You know if you are in a position to buy a home in your target neighborhood. It tells sellers that you are a qualified buyer. It lets you make an offer right away, before someone else does It makes it easier to get the service of a realtor.

6. Before You Buy: What to Do Check your credit –Fix any issues that may prevent you qualifying for a mortgage Determine a monthly payment that you can afford –Based on this monthly payment – a home price can be determined Set your price range Get Pre-Approved with a lender

7. Approval Documents Provide 3-4 pay stubs. 2 years worth of tax returns and W2 forms. Provide bank statement Proof of any additional qualifying income such as alimony and child support. Show a 2 year employment history –Note: we can use stipend income 600 is the minimum credit score that is considered

8. Credit: What you need to know A credit report is a record of your credit history. It records payment histories, amount of time accounts are open, credit inquiries, and any negative items A credit score can typically be between 350 and 800. It has the greatest effect on your interest rate. Get a copy of your credit report to see if any problems exist: –Free credit reports at - www.annualcreditreport.comwww.annualcreditreport.com

9. How to Improve your Credit Score? Pay all bills on time Keep credit card balances below 50% of available credit limit Don't close unused accounts. The zero balance can help your score Pay off recent collection accounts or charge-offs Let old negative items over 2 years remain unpaid Become an authorized user on someone's credit card with a good payment history.

10. Loan Options Conventional Loans (typically 5% or more down) –Usually 30-year and 15-year maturities FHA (Government loans) – 3.5% down –Higher upfront costs, but more lax approval guidelines VA (Veterans loans) – 0% down Fixed vs. Adjustable Loans –When a 5-Yr or a 7-Yr adjustable loan makes sense

11. Understanding Closing Costs Costs associated with obtaining a mortgage –Lender & Broker Fees –Title Fees –Appraisal –Inspections & Survey –Home Insurance These costs typically range from $3,000 to $7,000 Sellers are allowed to cover them for you

12. Buying a Home: Timeline 1.Get Pre-Approved 2.Find a Realtor 3.Look at Homes 4.Make a Purchase Offer 5.Negotiate and Enter into a Contract 6.Get a Home Inspection 7.Pick a Loan Program & Lock Your Interest Rate 8.Meet with your Loan Officer 9.Submit your Loan Application 10.Order an Appraisal 11.Receive Loan Approval 12.Attend Closing 13.Join the Ranks of Homeowners

13. Questions? 1.This presentation is available at http://carlsonstl.com/washu2015/ 2.Call Alex at 314-329-7314 with any questions 3. Find us on Facebook: –Carlson Mortgage –Alex Gorodinsky