Mortgage Matters

· Why is it important that you learn about financing today?

Financing is integral to the sale and purchase of your home

Education is the only way to understand the loan process

Financing is part of the marketing of a home

· How important is the Credit Score?

Credit Scores are an integral part of getting a loan

Establishing credit is critical for letting banks know you will repay your loan

Borrowers really need 2 years of history to show their credit worthiness

Maintaining good credit by paying bills on time and not keeping high unpaid balances will ensure a better score

(Note: As a rule of thumb, you should have a maximum balance of 50% for all credit cars total. Ex: Your balance on your credit

cards is $2500.00 but you have a maximum allowance of $5000.00)

· Where do you fall on the National Credit Score Distribution?

· Credit Report and Scoring

What shows on your credit score?

• Payments with a revolving and installment credits
• Credit cards
• Car notes

• Student loans both in deferment and active

• Utilities will not show up unless:
• There is a collection request for late payments
• Utilities in good standing may appear only to

establish a payment history.

• Collections

What is in your credit score?

What may appear on your credit report but not in your Credit Score?

• Your race, color, religion, national origin, sex, marital status, and age

• Your salary, occupation, title, employer, date employed or employment history

• Where you live

• Any items reported as child/family support obligations

• Whether or not you are participating in credit counseling of any kind

Link to Credit Scores vs. Rates

· Lets walk through these loan stages together:

§ Buyer Profile-What is the lender looking for?

§ Loan Process Flow-Looking Stage

§ Loan Process Flow-Contract to Loan Commitment Stage

§ Loan Process Flow-Closing!

· Selecting Loan Products