Homebuyer Guide | Neal

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Homebuyer Guide

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Joanie Neal Acopia Home Loans Branch Manager NMLS 379483 | GRMA 379483

(615) 210-1242

It 's a great time to own a home.

Jana Neal Acopia Home Loans Mortgage Loan Advisor NMLS 2248146

(615) 879-7192

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Thinking about buying a home? a place of your own.

Here are a few of the benefits of having

1. Rents rise If you get a fixed-rate mortgage on a home purchase, your mortgage payment can never change. Unless a renter is in a rent-controlled building or neighborhood, their rent is at risk of rising every year, jeopardizing budget stability.

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2. Building wealth When you make a mortgage payment, a portion pays the loan down each month, adding equity to your home. And, as the home appreciates, you gain the appreciation on the home’s entire value, not just the gain of cash you’ve invested.

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5. Tax benefits Homeowners are allowed to deduct mortgage interest and property taxes when they file each year. The savings from tax benefits may be significant, often making owning the same, or cheaper, than renting.

3. It’s your property

4. Neighbors and community As a homeowner, you can get to know your neighbors without having to hear them through the wall. Homebuyers usually plan to stay longer, too, creating community and social opportunities for you and your family.

You can add-on, paint your kid’s room any color you want, or change your floors from carpet to wood, without asking a landlord for permission. Even more, making the right home improvements can increase the value of your property.

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home loan...

When planning to apply for a

Some questions to ask yourself •

Do you have steady income and employment?

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Do you have money for the down payment and closing costs?

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Have you created a budget so you know how much you can afford?

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Do you make enough money to cover the monthly mortgage payment including taxes and insurance?

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Do you have a good credit history?

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Rules of thumb •

Your home cost should generally be no greater than 2 ½ to 3 times your annual gross income.

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Your monthly housing costs generally should not be more than 28% of your gross monthly income.

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Your total debt-to-income (DTI) should generally be less than or equal to 45% of your gross monthly income.

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Typically, you need to have $1500-2000 on hand to pay for expenses prior to closing on your new mortgage, i.e. inspections, earnest money, and appraisal.

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Why Acopia?

Our mission We are mortgage banking professionals who are committed to making our communities a better place to live and work. We do this by providing innovative products and superior customer service.

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What makes us different?

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We are committed to delivering

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superior customer service

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We offer competitive rates and

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financing.

We are a direct seller servicer (Ask us why that matters) We close on time.

We always do the right thing, every time.

Our values At Acopia, our entire team is dedicated to working together to serve you with integrity, honesty and exceptional service.

We‘ll be here for you throughout the mortgage process to answer every question.

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Acopia is the best! You couldn't ask for any better. They are professional, very helpful, nice and easy to talk to. I'm not very computer savvy, but they were very Sweetest, most caring

helpful and wanted to be sure I

group of people I've ever

understood everything! I have used

seen! You've made becoming

Acopia twice now and I highly

a new homeowner easy. Thanks

recommend them to anyone!

for going the extra mile to C

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make my dreams come true.

-Reginald L., Monroe, GA

-Wendy G., Charlotte, NC

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Everything was perfect

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and I cant say enough for

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the gang at Acopia. I will recommend highly all of They welcomed my

my real estate friends and

questions and made me

clients! You guys ROCK!!

feel safe! I’m very pleased with my home buying experience.

-Jonathan S., Elmore, AL

Experience the Acopia difference.

-John S., Hendersonville, TN

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What we offer Products

Here are just some of the products that are available to you.

Conforming

Government •

FHA loans

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Multiple MI options

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USDA, 100% financing available

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Fannie Mae HomeReady®

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Down payment assistance (varies by state)

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Freddie Mac Home Possible® Advantage

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VA loans, 100% financing available

Down payment assistance (varies by state)

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GNMA seller servicer

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FNMA and FHLMC seller servicer

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Technology

We have several tools to help guide you through the homebuying process.

AcopiaGO mobile app Apply for and manage your home loan, securely scan documents, utilize helpful mortgage calculators, and get instant updates - all while on the GO!

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Specialty •

Jumbo

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Manufactured

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Heroes program offers 0.25% lender credit to veterans, active military, law enforcement, firefighters, EMS/medical personnel and educators with an agent or REALTOR® match

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Non-agency mortgage options available

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HELOC and fixed second mortgages

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Many more, ask me about our other niche products

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Hybrid eClosings Hybrid eClosings save you time through a combination of wet signed and electronically signed loan docs, reducing time at the closing agent’s office.

Online app Apply online to submit an online application in minutes, get prequalified, or upload documents safely and securely.

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Ready to get arted?

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Steps in the loan process Prequalification

Underwriting

Your loan officer will go through your financial

The underwriter will verify everything. They

obligations, pull credit and determine what

will evaluate the eligibility requirements of

amount of mortgage you qualify for. Loan

the loan program being used with the

programs will be discussed. You will start

documentation from the processor. Once

gathering your documents. You will be busy

reviewed, either a Conditional Approval or

house hunting during this time.

Clear to Close is issued.

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Application

Clear to Close

Application is signed. A checklist of

Clear to Close is issued after all underwriting

documents will be provided. All

conditions are met. A closing disclosure will

documentation should be turned in within 48

be sent for acknowledgement no later than

hours of application being signed. At this

three days before the day of closing. Closing is

time, we will order appraisal, tax transcripts,

the signing of paperwork and you go home

title and employment verifications.

with keys to your new home!

3 Loan processing Your documentation will be fully reviewed and assembled per underwriting standards for the loan program selected. During this step, we will receive and verify appraisal and title.

Processor will prepare the paperwork for the underwriter to review.

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Homebuyer checkli Driver’s license, social security number verification may be required.

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Sales contract and all addendums, or attachments signed by the sellers and purchasers involved in the transaction. For refinances, a copy of the note and warranty deed on the property being refinanced.

Let’s make sure you have everything you need to begin your homebuying journey.

Pay stubs (full and part time) covering the past 30 days and written verification of any additional income (social security, disability, etc.).

Bank statements for the past two consecutive months with all pages or most recent quarter if those funds are to be used or needed to show reserves.

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Residence addresses for the past two years, including name, address and phone number of landlord if currently renting. First time home buyer programs require three year’s history.

Complete tax returns and W-2 forms with all schedules for the past two years, W-2’s for both current and previous employers are required.

Statement for investments or special assets for all stocks, bonds, 401(k) and other special assets for the past 2 months or most recent quarter if those funds are to be used or needed to show reserves.

Real property current value. If it is to be sold, provide a copy of the contract. If already sold, provide a copy of the settlement statement. If it’s to be rented, provide a copy of the current one year lease. If it is to be retained, we will need documentation on annual property taxes, Homeowners insurance or any HOA dues.

If applicable Self-employed borrowers: Complete personal and business tax returns with all schedules for the last 2 consecutive years, year-to-date profit and loss statement with balance sheet, if applicable, copies of 1099 forms for the last 2 consecutive years.

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Let 's talk credit Credit do nots When you are purchasing a home, here are a few things that may negatively affect your homebuying experience. If at all possible, steer clear of these “NO-NOs” until AFTER you have gone to settlement.

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Do NOT take on new debt. The temptation is strong. There are so many big purchases that people want to make in connection with a move: appliances, window treatments, furniture, etc. Add to this the fact that, today, everyone offers easy terms and no money down — well, why not just do it?

Answer: because it will change your debt-to-income ratios, could postpone your closing as the lender waits for the new debt to be verified, and could lower your credit score.

Do NOT close out any current credit accounts, transfer balances, or pay off collections without first consulting with your mortgage advisor.

Do NOT increase your credit card balances substantially.

Do NOT pack too soon. Well, go ahead and pack your clothes and dishes. But do not pack your bank statements, tax returns, or other important paperwork.

Most especially, do not pack your drivers license or checkbook! More than one buyer has had closing delayed while a friend or relative hurried over with additional funds because the checkbook was in the moving van.

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Do NOT change jobs or alter your compensation plan. If at all possible, try not to make a career move during the time between your mortgage application and the closing on the home you are purchasing. But, you ask, “What if it’s a BETTER job, for MORE money, in a DIFFERENT field?” Still, try to wait until AFTER closing. One of the factors mortgage companies consider is length of present employment; they are partial to stability. At the very least, changing jobs initiates the need for more paperwork, and may delay your closing.

Do NOT move money between bank accounts. Lenders are required to verify C

most ALL deposits into the account(s) you are using for funds to close. The

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more you move money: the greater the paper trail you will be required to

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produce.

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Do NOT make any cash deposits. Do not deposit cash into your bank

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account without keeping a paper trail of where it came from.

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Do NOT lease a new car. This should go under the general heading of “no new debt.” It is highlighted here because, for some strange reason, many buyers do run right out and lease a new car during the time between mortgage application and closing! As with any debt, this will change your debt-to-income ratios and may cause you not to qualify for your mortgage.

In short, do nothing that negatively impacts your ability to qualify for your mortgage loan, or initiates a new round of paperwork. If you have any doubts about doing something that may affect your ability to qualify for your mortgage loan, please consult your loan provider before you do it.

These suggestions are merely that—suggestions. No one is saying, flat out, that bad things will necessarily follow if you do any of the above. They are offered as cautions. Many buyers seem to view the mortgage application procedure as a static action, a snap shot of their financial lives at a given moment in time. It’s not. It’s an on-going process that takes into account everything you do right up until the day of closing.

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A li le about credit repair FHA loans •

Bankruptcy 7 = 2 years from discharge date

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Bankruptcy 7 & 11 = 4 years from discharge date

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Bankruptcy 13 = 2 years from discharge date

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Bankruptcy 13 = 2 years from discharge date

*If discharged less than 2 years, a manual underwrite is required and must document that events leading to bankruptcy are not likely to recur C

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• Foreclosure = 3 years from completion of foreclosure

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Conventional loans

• *Short Sale = 3 years from date of sale unless: 1. current at time of short sale and

• *Foreclosure = 7 years from completion of foreclosure •

Short Sale = 4 years from date of sale

*For Fannie Mae, Conventional financing, if supporting

documentation reflects that mortgage debt was discharged through a BK, the 4 year BK waiting periods may be applied in lieu of the 7 year Foreclosure waiting period.

2. debts paid on time 12 months preceding short sale and 3. short sale not done to take advantage of declining market. *FHA manual underwriting guidelines apply if less than 3 years

VA loans • Bankruptcy 7 = 2 years from discharge date •

Bankruptcy 13 = 2 years from discharge date

• Foreclosure = 2 years from completion date •

Short Sale = 2 years from date of sale

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USDA loans •

Bankruptcy 7 & 11 = 3 years from discharge date

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Bankruptcy 13 = 3 years from discharge date

• Foreclosure = 3 years from completion date • Short Sale = 3 years from date of sale C

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Trying again?

If you‘ve had life-changing events happen, know when you may qualify to be a homeowner again.

Have questions? We’re here to help.

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A few mortgage QAs Common myths MYTH: The first step to buying a house is looking for a home.

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Browsing is always fun, but making sure your credit is in top shape and getting prequalified to determine your budget is the first step.

There are many myths when it comes to buying a home.

Reach out. I’m here to answer every question.

MYTH: Low down payment programs are only for first-time homebuyers.

MYTH: You need to put 10-20% down for your home's down payment.

MYTH: Renting is cheaper than buying a home In some cities, the cost of renting may be less than or equal to a monthly mortgage payment. You may end up saving money in the long run buying a home.

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MYTH: Home Inspections are unnecessary

Mortgage lingo

In reality, about 60% of homebuyers financed the purchase of their home using 6% or less for a down payment.

Source: Chenoa Fund

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Source: Redfin.com

Dow are wit scor out

MYTH: The listing price is non-negotiable.

A few common mortgage terms and their meanings.

ARM

LTV

Adjustable rate

Loan-to-value

mortgage. A

ratio. Lenders

mortgage with

use this to

an interest rate

measure the risk

that changes.

associated with your loan.

So

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MYTH: A 30-year mortgage is the best option.

While monthly payments are lower than its 15-year counterpart, you could end up paying more for the life of the loan in interest.

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MYTH: It's difficult to qualify for down payment assistance.

Down payment programs are available to buyers with all levels of credit scores and income. Find out about programs you may qualify for.

Source: Chenoa Fund

MYTH: You can’t use gifts, loans or grants for your down payment.

DTI

DPA

Debt-to-income

Down payment

Your FICO score is a

ratio. This reflects

assistance.

number typically on a

FICO

the percentage of

300-850 range, used by

debt you carry

lenders to determine your

compared to your

ability to pay back

income sources.

borrowed debt.

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SCAN ME to apply online or through our app!

ACOPIA SOLUTIONS With Acopia, you have more options.

LENDER ID

4664

Acopia, LLC is a residential mortgage lender. All loans are subject to underwriting, credit and property approval. Not all products are available in all states, or for all loan amounts. Other restrictions and limitations may apply.

GA Residential Mortgage Licensee. Branch ID 1512180

101 5th Avenue West, 2nd Floor, Springfield, TN 37172

Your home.

Our commitment.