Your Exclusive Guide to Buying Your First Home

Your Exclusive Guide to ...

Buying Your First Home

Here to help you finance your homeownership dreams.

Congratulations! Buying your first home is very exciting and a major milestone in your life. While it is a big investment, it is also your first step toward creating wealth and security for you and your family. But, buying a home can also be stressful. Finding the right mortgage loan, securing a down payment, pulling financial documents together, even finding the right house can cause some anxiety.

The purpose of this booklet is to relieve that stress by providing you with some real estate basics.

Michael Kaleikini

Direct: 702-918-0953

Loan Officer

NMLS# 1289907 16624 W. 159th St. Suite 601 Lockport , IL 60441

mkaleikini@afncorp.com

Branch NMLS# 836822. American Financial Network, Inc. is licensed by the Nevada Mortgage Broker Branch License (3688) under Nationwide Mortgage Licensing System (NMLS), unique identifier of 836822. Refer to www.nmlsconsumeraccess.org and input NMLS #237341 to see where AFN is a licensed lender. In all states, the principal licensed office of American Financial Network, Inc. is 10 Pointe Drive, Suite 330, Brea, CA 92821; Phone: (714) 831-4000 (NMLS ID#237341). This is not an offer for extension of credit or commitment to lend. All loans must satisfy company underwriting guidelines. Not all applicants qualify. Information and pricing are subject to change at any time and without notice. The content in this advertisement is for informational purposes only.

EQUAL HOUSING

LENDER

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EXPERTISE YOU CAN TRUST Buying a home is a big investment. So, when it comes to making an important decision like this, you want expert advice. We will walk you through each step of the lending process and keep you updated on the status of your loan application from pre-approval to closing.

We’re committed to making your first time home buying experience the best it can possibly be. As dedicated mortgage professionals we believe that each and every one of our loan transactions is the beginning of a relationship that will last a lifetime!

Dedicated to Financing The American Dream As one of the fastest growing mortgage bankers in the United States, we opened our doors in 2001 and have since expanded with many community based branches across the nation. Headquartered in Brea, CA, AFN built its reputation as an outstanding mortgage banking firm by serving the lending needs of real estate professionals, builders, and individual homebuyers throughout the United States.

We are a Direct Lender with delegated authority to underwrite, fund and service Fannie Mae, Freddie Mac, FHA, USDA, VA, and Jumbo loans products in house. Our success and expansion is built on core values including streamlined and efficient operations that optimize organizational output as well as an approach to customer service founded on exceeding expectations.

Michael Kaleikini

Direct: 702-918-0953

Loan Officer

NMLS# 1289907 16624 W. 159th St. Suite 601 Lockport , IL 60441

mkaleikini@afncorp.com

Branch NMLS# 836822. American Financial Network, Inc. is licensed by the Nevada Mortgage Broker Branch License (3688) under Nationwide Mortgage Licensing System (NMLS), unique identifier of 836822. Refer to www.nmlsconsumeraccess.org and input NMLS #237341 to see where AFN is a licensed lender. In all states, the principal licensed office of American Financial Network, Inc. is 10 Pointe Drive, Suite 330, Brea, CA 92821; Phone: (714) 831-4000 (NMLS ID#237341). This is not an offer for extension of credit or commitment to lend. All loans must satisfy company underwriting guidelines. Not all applicants qualify. Information and pricing are subject to change at any time and without notice. The content in this advertisement is for informational purposes only.

EQUAL HOUSING

LENDER

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YOUR HOMEBUYING EXPERIENCE So, let’s get started. The home buying experience is a learning process. As you move through it you’ll have a number of options to weigh. But, before beginning the search for that dream home, there are a couple of things you can do to prepare. Taking the time to prepare and understanding what is involved in obtaining a mortgage loan will make you not just a smarter home buyer, but a smarter homeowner as well.

KNOW YOUR OPTIONS

GET PRE-APPROVED*

EDUCATE YOURSELF

At AFN, we have multiple loans programs available ranging from VA and USDA to FHA 203(k) loans. We’ll explain the benefits and requirements of each, so you are fully informed of what you are eligible for. Feel free to ask lots of questions along the way.

A pre-approval is a detailed, picture of your credit worthiness verified by a full review of your income and assets by an AFN Mortgage Underwriter.

The more you know about the loan process, the more educated decisions you’ll be able to make about your home financing. Review this guide for helpful tips and information regarding home mortgages.

Wtih a pre-approval letter in hand, you’ll have the confidence you need to make an offer, know what you can afford, negotiate better and close faster.

SHOP SM

ART Whether lo oking for a move-in-re ady home or fixer upper, weigh the cost of red ecorating o r fixing struc tural issues .

*A pre-approval is not a commitment to lend. A pre-approval is subject to satisfactory appraisal, title, and no material changes to borrower's financial condition.

Michael Kaleikini

Direct: 702-918-0953

Loan Officer

NMLS# 1289907 16624 W. 159th St. Suite 601 Lockport , IL 60441

mkaleikini@afncorp.com

Branch NMLS# 836822. American Financial Network, Inc. is licensed by the Nevada Mortgage Broker Branch License (3688) under Nationwide Mortgage Licensing System (NMLS), unique identifier of 836822. Refer to www.nmlsconsumeraccess.org and input NMLS #237341 to see where AFN is a licensed lender. In all states, the principal licensed office of American Financial Network, Inc. is 10 Pointe Drive, Suite 330, Brea, CA 92821; Phone: (714) 831-4000 (NMLS ID#237341). This is not an offer for extension of credit or commitment to lend. All loans must satisfy company underwriting guidelines. Not all applicants qualify. Information and pricing are subject to change at any time and without notice. The content in this advertisement is for informational purposes only.

EQUAL HOUSING

LENDER

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THE LOAN PROCESS FROM START TO FINISH

4. AFN issues your pre-approval* and you start looking for a home with a real estate agent

*A pre-approval is not a commitment to lend. A pre-approval is subject to satisfactory appraisal, title, and no material changes to borrower's financial condition.

Michael Kaleikini

Direct: 702-918-0953

Loan Officer

NMLS# 1289907 16624 W. 159th St. Suite 601 Lockport , IL 60441

mkaleikini@afncorp.com

Branch NMLS# 836822. American Financial Network, Inc. is licensed by the Nevada Mortgage Broker Branch License (3688) under Nationwide Mortgage Licensing System (NMLS), unique identifier of 836822. Refer to www.nmlsconsumeraccess.org and input NMLS #237341 to see where AFN is a licensed lender. In all states, the principal licensed office of American Financial Network, Inc. is 10 Pointe Drive, Suite 330, Brea, CA 92821; Phone: (714) 831-4000 (NMLS ID#237341). This is not an offer for extension of credit or commitment to lend. All loans must satisfy company underwriting guidelines. Not all applicants qualify. Information and pricing are subject to change at any time and without notice. The content in this advertisement is for informational purposes only.

EQUAL HOUSING

LENDER

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LOAN LOAN OPTIONS OPTIONS TO TO CONSIDER CONSIDER Loan Loan Products Products To To Suit Suit Your Your Needs Needs FHA Federally backed loan for up to $417,000, FHA offered

VA VA Veterans and surviving spouses may finance up

Federally backed loan up terms to $417,000, offered at competitive rates withfor fixed available from at competitive with fixed terms available from 10 — 30 years. rates Down payment assistance may be 10 — 30 years. Down payment assistance may be available. available.

Veterans spouses may financewith up to 100% ofand newsurviving home’s value up to $417,000, to 100% of down, new home’s value up to and $417,000, with no money no appraisal fee, no private no money insurance down, no premium appraisal (PMI). fee, and no private mortgage mortgage insurance premium (PMI).

Jumbo Jumbo

USDA USDA Qualified borrowers may purchase a designated

Purchase with as little as 15% down with a Non Purchase with as little as Available 15% down a Non Conforming Jumbo Loan. forwith properties Conforming Jumbo Loan. Available valued greater than $417,001 and upfor to properties $3 million. valued as greater FICO’s low asthan 680.$417,001 and up to $3 million.

FICO’s as low as 680.

HomePath HomePath

Purchase Fannie Mae eligible real estate owned Purchase Maeaseligible real estate owned properties Fannie for as little 5% down and no appraisal properties for as little as 5% down and no appraisal fees or premium mortgage insurance required, feeseligible or premium mortgage insurance required, For properties visit: www.homepath.com.

For eligible properties visit: www.homepath.com.

Qualified borrowers may up purchase a designated USDA rural property to 100% loan-toUSDA with ruralnoproperty up to 100% value down payment.

Flexibleloan-tocredit value withapply. no down payment. Flexible credit guidelines guidelines apply.

Conventional Conventional First time homebuyers

may purchase with as First time homebuyers may purchase as little as 5% down. Purchase using giftwith funds little as 5% down.

Purchase using gift funds for your down payment. Competitive rates for your Competitive rates and fixed down terms payment. available and lower FICO’s and qualify. fixed terms available and lower FICO’s may may qualify.

Foreign National Foreign National $3M on

FHA 203(k) FHA Pay for 203(k) home repairs before you move in when

$3M on required required FICO of FICO of

Pay forthe home you move in when using FHArepairs 203(k)before Streamline Rehabilitation using the FHA 203(k) Streamline Rehabilitation loan. Funds available up to $35,000 and take up to loan.

Fundsto available up the to $35,000 six months complete work. and take up to six months to complete the work.

Foreign Nationals can purchase up to Foreign Nationals canNopurchase up to primary residences. credit score primary residences.

No credit score unless available.. If available, minimum unless available.. If available, minimum 680 required.

680 required.

*Brokered products may have higher rates or different terms than conventional loan products. Additional Terms and Conditions may apply.products Contact your more details. not available all areas. Additional Terms and Conditions *Brokered may loan haveprofessional higher rates for or different termsProducts than conventional loaninproducts. may apply. Contact your loan professional for more details. Products not available in all areas.

Michael Kaleikini

Direct: 702-918-0953

Loan Officer

NMLS# 1289907 16624 W. 159th St. Suite 601 Lockport , IL 60441

mkaleikini@afncorp.com

Branch NMLS# 836822. American Financial Network, Inc. is licensed by the Nevada Mortgage Broker Branch License (3688) under Nationwide Mortgage Licensing System (NMLS), unique identifier of 836822. Refer to www.nmlsconsumeraccess.org and input NMLS #237341 to see where AFN is a licensed lender. In all states, the principal licensed office of American Financial Network, Inc. is 10 Pointe Drive, Suite 330, Brea, CA 92821; Phone: (714) 831-4000 (NMLS ID#237341). This is not an offer for extension of credit or commitment to lend. All loans must satisfy company underwriting guidelines. Not all applicants qualify. Information and pricing are subject to change at any time and without notice. The content in this advertisement is for informational purposes only.

EQUAL HOUSING

LENDER

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5 REASONS YOU NEED A PRE-APPROVAL An income based pre-approval from AFN offers a number of advantages that will make your search easier and negotiations more effective when you’re ready to make an offer. A pre-approval takes into account your income, debt and credit history to determine how much the lender is willing to loan you.

1

Finding the right home at the right price begins with knowing what you can afford. A pre-approval* based on you income and expenses gives you the home buying budget you need.

2

With a pre-approval in hand you can shop with the confidence of a cash buyer for your new home.

3

Your pre-approval will provide your realtor with the financial information they need to focus your search on homes that you can afford, saving you both valuable time.

4

With pre-approval you’re able to make an immediate offer the seller will take seriously in a a highly competitive real estate market.

5

The sooner you close, the sooner you can move in. Pre-approval means you’re loan application is already in process. Once your offer is accepted you and the seller can expect to save time and close the deal quickly.

*A pre-approval is not a commitment to lend. A pre-approval is subject to satisfactory appraisal, title, and no material changes to borrower's financial condition.

Michael Kaleikini

Direct: 702-918-0953

Loan Officer

NMLS# 1289907 16624 W. 159th St. Suite 601 Lockport , IL 60441

mkaleikini@afncorp.com

Branch NMLS# 836822. American Financial Network, Inc. is licensed by the Nevada Mortgage Broker Branch License (3688) under Nationwide Mortgage Licensing System (NMLS), unique identifier of 836822. Refer to www.nmlsconsumeraccess.org and input NMLS #237341 to see where AFN is a licensed lender. In all states, the principal licensed office of American Financial Network, Inc. is 10 Pointe Drive, Suite 330, Brea, CA 92821; Phone: (714) 831-4000 (NMLS ID#237341). This is not an offer for extension of credit or commitment to lend. All loans must satisfy company underwriting guidelines. Not all applicants qualify. Information and pricing are subject to change at any time and without notice. The content in this advertisement is for informational purposes only.

EQUAL HOUSING

LENDER

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CREDIT DO’S & DON’TS DO’S DO continue making your mortgage or rent payments & stay current on all existing accounts

DO continue living at your current residence

DO be prepared to source all deposits

DONT’S DON’T make any major purchases (i.e. car, major appliance, etc.)

DON’T apply, open or close any credit card accounts or close bank accounts

DON’T quit your job

DO ask your loan officer before making any financial decisions throughout the loan process

DON’T transfer any balances from one account to another

DO alert us if your salary or compensation changes from what is documented on your loan app

DON’T run your credit before asking your loan officer first

Michael Kaleikini

Direct: 702-918-0953

Loan Officer

NMLS# 1289907 16624 W. 159th St. Suite 601 Lockport , IL 60441

mkaleikini@afncorp.com

Branch NMLS# 836822. American Financial Network, Inc. is licensed by the Nevada Mortgage Broker Branch License (3688) under Nationwide Mortgage Licensing System (NMLS), unique identifier of 836822. Refer to www.nmlsconsumeraccess.org and input NMLS #237341 to see where AFN is a licensed lender. In all states, the principal licensed office of American Financial Network, Inc. is 10 Pointe Drive, Suite 330, Brea, CA 92821; Phone: (714) 831-4000 (NMLS ID#237341). This is not an offer for extension of credit or commitment to lend. All loans must satisfy company underwriting guidelines. Not all applicants qualify. Information and pricing are subject to change at any time and without notice. The content in this advertisement is for informational purposes only.

EQUAL HOUSING

LENDER

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BUYING VS. RENTING How much could you be saving by buying a home?

Let’s calculate it and find out!

In this all too common example, our renter may be throwing money away year after year by not owning a home. If you are still renting, you are probably paying someone else’s mortgage and helping them to accumulate wealth that should be yours. We have helped many first time homebuyers finance their homes and we would love to help you.

More Great Benefits Homeowners Enjoy!

• • • • • •

Possible tax advantages and deductions Home equity accumulation Payment stability Upgrade, decorate and paint the way you want Build equity as your home value increases Pride of ownership — it’s your home!

Michael Kaleikini

Direct: 702-918-0953

Loan Officer

NMLS# 1289907 16624 W. 159th St. Suite 601 Lockport , IL 60441

mkaleikini@afncorp.com

Branch NMLS# 836822. American Financial Network, Inc. is licensed by the Nevada Mortgage Broker Branch License (3688) under Nationwide Mortgage Licensing System (NMLS), unique identifier of 836822. Refer to www.nmlsconsumeraccess.org and input NMLS #237341 to see where AFN is a licensed lender. In all states, the principal licensed office of American Financial Network, Inc. is 10 Pointe Drive, Suite 330, Brea, CA 92821; Phone: (714) 831-4000 (NMLS ID#237341). This is not an offer for extension of credit or commitment to lend. All loans must satisfy company underwriting guidelines. Not all applicants qualify. Information and pricing are subject to change at any time and without notice. The content in this advertisement is for informational purposes only.

EQUAL HOUSING

LENDER

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ESTIMATED SAVINGS CALCULATIONS HOME PURCHASE SIMPLE EXAMPLE* Rent

Buy

Monthly Payments

$1,300

$909

Est. Taxes, Insurance & Other

$20

$480

Est. Total Monthly Payment

$1,320

$1,390

Tax Benefit

$0

-$213

Principal Paid

$0

-$422

Est. Net Monthly Payments

$1,320

$754**

Potential Equity Gained***

$0

$45,150

Cash Paid to Landord

$82,383

Based on 60 month analysis of home purchase

Amount gained in EQUITY

Amount paid to landlord

$45,150

$82,383

Michael Kaleikini

*Example based on fixed 30-year FHA mortgage. Purchase Price: $200,000.00, Closing Costs: $5,941.00, Down Payment: $7,000.00, APR: 5.43%, Interest Rate: 3.75%, Tax Bracket: 28.000%, Rental assumption increase/yr 2.0%, Ownership assumption appreciation: 2.0%. All numbers are rounded to the nearest dollar. DTI: 45%. Owner Occupied with FICO score of 680. Example data effective as of 9/17/14. **Monthly average tax benefit and monthly principal payments are based on the average of the 60 month total. The Net Effective Monthly payment is calculated using the actual monthly payment minus the tax benefit and principal paid.***AFN is not a tax or financial advisor.

Please consult a licensed financial/tax advisor and appropriate government agencies regarding deductibility of interest and other effects on taxes. Payment amount does not include HOA fees, and if applicable, payment will be greater.

Direct: 702-918-0953

Loan Officer

NMLS# 1289907 16624 W. 159th St. Suite 601 Lockport , IL 60441

mkaleikini@afncorp.com

Branch NMLS# 836822. American Financial Network, Inc. is licensed by the Nevada Mortgage Broker Branch License (3688) under Nationwide Mortgage Licensing System (NMLS), unique identifier of 836822. Refer to www.nmlsconsumeraccess.org and input NMLS #237341 to see where AFN is a licensed lender. In all states, the principal licensed office of American Financial Network, Inc. is 10 Pointe Drive, Suite 330, Brea, CA 92821; Phone: (714) 831-4000 (NMLS ID#237341). This is not an offer for extension of credit or commitment to lend. All loans must satisfy company underwriting guidelines. Not all applicants qualify. Information and pricing are subject to change at any time and without notice. The content in this advertisement is for informational purposes only.

EQUAL HOUSING

LENDER

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TOP MISTAKES OF TOP MISTAKES OF 1ST TIME HOMEBUYERS 1ST TIME HOMEBUYERS MISTAKE MISTAKE

11

Start House Hunting Without A Pre-Approval Start House Hunting Without A Pre-Approval

Imagine finding and falling in love with a house you can’t afford. Starting your search without a pre-approval* can mean wasted time and disappointment.

Save time and your avoidsearch disappointment Imagine finding and falling in love with a house you can’t afford.

Starting without a by putting first things first.

Get a pre-approval letter from a qualified lender that let’s you and your pre-approval* can mean wasted time and disappointment. Save time and avoid disappointment Realtor know you canletter afford. by putting firstexactly things how first. much Get a house pre-approval from a qualified lender that let’s you and your Realtor know exactly how much house you can afford.

MISTAKE MISTAKE

2 2

Buying A Home That’s Not Right For You Buying A Home That’s Not Right For You

A clear understanding of what’s most important to you in a first home is critical. Call it a checklist or a wish list,understanding but before you your search consider these A clear ofstart what’s most important to you in aquestions: first home is critical. Call it a checklist or a wish list, but before you start your search consider these questions: • What type of home? - Start with your basic “must haves.” This includes not just the style of the • •

home,type but also the number floors, of bathrooms, availability a garage, What of home?

- Startof with yournumber basic “must haves.” This includesofnot just theetc. style of the How much square How much space will you need?

What floor will best home, but also the footage? number of- floors, number of bathrooms, availability of aplan garage, etc. suit your

• •

needs?

How much square footage? - How much space will you need? What floor plan will best suit your What Other features?: Think of these as preferences. What type of heating do your prefer? Is a needs?

•

gas stove essential?

DoThink you require a finished basement?

Dotype you prefer the laundry beIson What Other features?: of these as preferences.

What of heating do your room prefer? a the main as opposed the basement? gas stovefloor essential?

Do youtorequire a finished basement? Do you prefer the laundry room be on

•

Which neighborhood?

- For many people where you live is almost as important as the house the main floor as opposed to the basement? you choose.

What local amenities will you require? thelive location convenient to youraswork?

If you Which neighborhood?

- For many people where Is you is almost as important the house

•

have school What age children, how arewill theyou local schools What convenient are the realto estate taxes like? you choose. local amenities require?

Is rated? the location your work?

If you have school age children, how are the local schools rated? What are the real estate taxes like? *A pre-approval is not a commitment to lend. A pre-approval is subject to satisfactory appraisal, title, and no material changes to borrower's financial condition. *A pre-approval is not a commitment to lend. A pre-approval is subject to satisfactory appraisal, title, and no material changes to borrower's financial condition.

Michael Kaleikini

Direct: 702-918-0953

Loan Officer

NMLS# 1289907 16624 W. 159th St. Suite 601 Lockport , IL 60441

mkaleikini@afncorp.com

Branch NMLS# 836822. American Financial Network, Inc. is licensed by the Nevada Mortgage Broker Branch License (3688) under Nationwide Mortgage Licensing System (NMLS), unique identifier of 836822. Refer to www.nmlsconsumeraccess.org and input NMLS #237341 to see where AFN is a licensed lender. In all states, the principal licensed office of American Financial Network, Inc. is 10 Pointe Drive, Suite 330, Brea, CA 92821; Phone: (714) 831-4000 (NMLS ID#237341). This is not an offer for extension of credit or commitment to lend. All loans must satisfy company underwriting guidelines. Not all applicants qualify. Information and pricing are subject to change at any time and without notice. The content in this advertisement is for informational purposes only.

EQUAL HOUSING

LENDER

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TOP MISTAKES OF 1ST TIME HOMEBUYERS MISTAKE

3

Not Using A Real Estate Agent The importance of working with a professional realtor cannot be overstated. A good realtor understands local market conditions, can provide insights into the community such as: the quality of local schools, the convenience of nearby amenities, etc. Most importantly, a seasoned realtor can assist in the crucial negotiations leading up to and following your initial offer.

MISTAKE

4

Tampering With Your Credit Prior To Closing Your pre-approval is based on a number of factors: income, debt, and perhaps most importantly, your credit history. Prior to closing, the lender will pull your credit report to see if there have been any changes to your financial situation. Changes to your credit report can mean additional documentation that can send your loan application back to underwriting for review. Here are a few things you shouldn’t do if you want to keep you’re closing on schedule and avoid putting your loan approval at risk.

•

Don’t change jobs

•

Don’t make any large purchases

•

Don’t max out or open new credit card accounts

•

Don’t sell off assets or move large amounts of money between accounts

Hold off on purchasing furniture or appliances for your new home. There will plenty of time to shop after your loan has closed.

Michael Kaleikini

Direct: 702-918-0953

Loan Officer

NMLS# 1289907 16624 W. 159th St. Suite 601 Lockport , IL 60441

mkaleikini@afncorp.com

Branch NMLS# 836822. American Financial Network, Inc. is licensed by the Nevada Mortgage Broker Branch License (3688) under Nationwide Mortgage Licensing System (NMLS), unique identifier of 836822. Refer to www.nmlsconsumeraccess.org and input NMLS #237341 to see where AFN is a licensed lender. In all states, the principal licensed office of American Financial Network, Inc. is 10 Pointe Drive, Suite 330, Brea, CA 92821; Phone: (714) 831-4000 (NMLS ID#237341). This is not an offer for extension of credit or commitment to lend. All loans must satisfy company underwriting guidelines. Not all applicants qualify. Information and pricing are subject to change at any time and without notice. The content in this advertisement is for informational purposes only.

EQUAL HOUSING

LENDER

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MORTGAGE TERMS AMORTIZATION The gradual repayment of a mortgage loan, both principle and interest, by installments.

ANNUAL PERCENTAGE RATE (APR) The cost of credit, expressed as a yearly rate including interest, mortgage insurance, and loan origination fees.

This allows the buyer to compare loans, however APR should not be confused with the actual note rate.

CLOSING COSTS These are expenses - over and above the price of the property- that are incurred by buyers and sellers when transferring ownership of a property. Closing costs normally include an origination fee, property taxes, charges for title insurance and escrow costs, appraisal fees, etc. Closing costs will vary according to the area and the lenders used.

DOWN PAYMENT Part of the purchase price of a property that is paid in cash and not financed with a mortgage.

EQUITY The amount of financial interest in a property. Equity is the difference between the fair market value of the property and the amount still owed on the mortgage.

ESCROW An item of value, money, or documents deposited with a third party to be delivered upon the fulfillment of a condition. For example, the deposit of funds or documents into an escrow account to be disbursed upon the closing of a sale of real estate.

Michael Kaleikini

LOAN-TO-VALUE (LTV) PERCENTAGE The relationship between the principal balance of the mortgage and the appraised value (or sales price if it is lower) of the property. For example, a $100,000 home with an $80,000 mortgage has an LTV of 80 percent.

MORTGAGE INSURANCE PREMIUM (MIP) The amount paid by a mortgagor for mortgage insurance.

PRIVATE MORTGAGE INSURANCE (PMI) Mortgage insurance provided by a private mortgage insurance company to protect lenders against loss if a borrower defaults. Most lenders generally require MI for a loan with a loan-to-value (LTV) percentage in excess of 80 percent.

RATE LOCK A commitment issued by a lender to a borrower or other mortgage originator guaranteeing a specified interest rate and lender costs for a specified period of time.

PRINCIPAL, INTEREST, TAXES, AND INSURANCE (PITI) The four components of a monthly mortgage payment.

Principal refers to the part of the monthly payment that reduces the remaining balance of the mortgage.

Interest is the fee charged for borrowing money. Taxes and insurance refer to the monthly cost of property taxes and homeowners insurance, whether these amounts are paid into an escrow account each month or not.

Direct: 702-918-0953

Loan Officer

NMLS# 1289907 16624 W. 159th St. Suite 601 Lockport , IL 60441

mkaleikini@afncorp.com

Branch NMLS# 836822. American Financial Network, Inc. is licensed by the Nevada Mortgage Broker Branch License (3688) under Nationwide Mortgage Licensing System (NMLS), unique identifier of 836822. Refer to www.nmlsconsumeraccess.org and input NMLS #237341 to see where AFN is a licensed lender. In all states, the principal licensed office of American Financial Network, Inc. is 10 Pointe Drive, Suite 330, Brea, CA 92821; Phone: (714) 831-4000 (NMLS ID#237341). This is not an offer for extension of credit or commitment to lend. All loans must satisfy company underwriting guidelines. Not all applicants qualify. Information and pricing are subject to change at any time and without notice. The content in this advertisement is for informational purposes only.

EQUAL HOUSING

LENDER

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FINDING FINDING THE THE RIGHT RIGHT HOUSE HOUSE Let’s start with finding the right house. Before you begin your search for a home, it’s important to identify the Let’s start with finding the right house. Before you begin your search for a home, it’s important to identify the type and style you’d like. Build your checklist by asking yourself some key questions. Once completed, sharing type and style you’d like. Build your checklist by asking yourself some key questions. Once completed, sharing this list with your real estate agent will help them focus on finding a home that’s just right for you. this list with your real estate agent will help them focus on finding a home that’s just right for you.

While this may be your first home, it’s not likely to be your last. As you put together your list keep in mind on While this may be your first home, it’s not likely to be your last. As you put together your list keep in mind on average most first-time buyers move within 5 to 7 years. Set your sights on identifying what meets your needs average most first-time buyers move within 5 to 7 years. Set your sights on identifying what meets your needs now and into the foreseeable future. Your list is about identifying basic needs that must be met and features now and into the foreseeable future. Your list is about identifying basic needs that must be met and features you’d like to have. you’d like to have.

Your Family’s Needs Your Family’s Needs

What will make your home, What will make your home, comfortable, efficient and comfortable, efficient and livable? livable?

• How many bedrooms do you • How many bedrooms do you need? Does each child need need? Does each child need their own room? their own room?

• How many bathrooms do • How many bathrooms do you need? you need?

• Do you need additional • Do you need additional storage space, a basement storage space, a basement or attic? or attic?

• Do you need a guest room • Do you need a guest room or home office? or home office?

Commuting Needs Commuting Needs Which neighborhoods will best

Which neighborhoods will best meet your travel and commuting meet your travel and commuting needs? needs?

• How far are you willing to • How far are you willing to commute to work each day? commute to work each day?

• How close to family • How close to family members do you need to be? members do you need to be?

• Do you need to be close to • Do you need to be close to transportation, such as bus transportation, such as bus or train routes? or train routes?

• Are there other activities you • Are there other activities you need to be close to like local need to be close to like local schools, church or golf club? schools, church or golf club?

Michael Kaleikini

Ideal Amenities Ideal Amenities

What added features do you What added features do you want? Then, prioritize based on want? Then, prioritize based on importance. importance.

• Working Fireplace • Working Fireplace • Central Air Conditioning • Central Air Conditioning • Hardwood Floors • Hardwood Floors • Walk-In Closets • Walk-In Closets • Gourmet or Eat-In Kitchen • Gourmet or Eat-In Kitchen • Whirlpool Bathtub • Whirlpool Bathtub • Separate Laundry Room • Separate Laundry Room • Large or Fenced Yard • Large or Fenced Yard • Swimming Pool • Swimming Pool • Three Car Garage • Three Car Garage

Direct: 702-918-0953

Loan Officer

NMLS# 1289907 16624 W. 159th St. Suite 601 Lockport , IL 60441

mkaleikini@afncorp.com

Branch NMLS# 836822. American Financial Network, Inc. is licensed by the Nevada Mortgage Broker Branch License (3688) under Nationwide Mortgage Licensing System (NMLS), unique identifier of 836822. Refer to www.nmlsconsumeraccess.org and input NMLS #237341 to see where AFN is a licensed lender. In all states, the principal licensed office of American Financial Network, Inc. is 10 Pointe Drive, Suite 330, Brea, CA 92821; Phone: (714) 831-4000 (NMLS ID#237341). This is not an offer for extension of credit or commitment to lend. All loans must satisfy company underwriting guidelines. Not all applicants qualify. Information and pricing are subject to change at any time and without notice. The content in this advertisement is for informational purposes only.

EQUAL HOUSING

LENDER

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ASKING ASKING YOURSELF YOURSELF THE RIGHT RIGHT QUESTIONS QUESTIONS THE How How much much can can II afford? afford?

Knowing just how much house you can afford will make your search much easier. This is probably Knowing just how much house you can afford will make your search much easier. This is probably the most important question for first time home buyers. But, don’t rely on online mortgage calculator the most important question for first time home buyers. But, don’t rely on online mortgage calculator or even a realtor’s back-of-the-envelope guesstimate. These rough estimates can leave important or even a realtor’s back-of-the-envelope guesstimate. These rough estimates can leave important financial details out of the equation. financial details out of the equation.

How How do do II make make an an offer? offer?

When it comes time to make an offer your real estate agent will be When it comes time to make an offer your real estate agent will be invaluable. He or she will help determine the amount of your offer invaluable. He or she will help determine the amount of your offer and manage the negotiations which follow. Using comparable and manage the negotiations which follow. Using comparable homes in the area that have recently sold, your realtor will be able homes in the area that have recently sold, your realtor will be able to assess a reasonable value of the home. While not an apples-toto assess a reasonable value of the home. While not an apples-toapples comparison, this information provides a useful guideline in apples comparison, this information provides a useful guideline in determining price. Don’t hesitate to offer less than asking price to determining price. Don’t hesitate to offer less than asking price to start. This is typically expected by the seller. In rare instances when a start. This is typically expected by the seller. In rare instances when a market is unusually hot, will the seller expect full asking price. market is unusually hot, will the seller expect full asking price.

Once you and your realtor have settled on an asking price, he or she Once you and your realtor have settled on an asking price, he or she will begin the negotiating process. Here’s what you can expect: will begin the negotiating process. Here’s what you can expect: • • • • • • • •

Your realtor presents your offer to the realtor of the seller.

Your realtor presents your offer to the realtor of the seller.

The seller will consider your offer and either accept or reject it.

The seller will consider your offer and either accept or reject it.

Should your offer be rejected, you can submit a counter offer or Should your offer be rejected, you can submit a counter offer or withdraw all together. withdraw all together.

Expect some back-and-forth before you agree on a price.

Expect some back-and-forth before you agree on a price.

Michael Kaleikini

Direct: 702-918-0953

Loan Officer

NMLS# 1289907 16624 W. 159th St. Suite 601 Lockport , IL 60441

mkaleikini@afncorp.com

Branch NMLS# 836822. American Financial Network, Inc. is licensed by the Nevada Mortgage Broker Branch License (3688) under Nationwide Mortgage Licensing System (NMLS), unique identifier of 836822. Refer to www.nmlsconsumeraccess.org and input NMLS #237341 to see where AFN is a licensed lender. In all states, the principal licensed office of American Financial Network, Inc. is 10 Pointe Drive, Suite 330, Brea, CA 92821; Phone: (714) 831-4000 (NMLS ID#237341). This is not an offer for extension of credit or commitment to lend. All loans must satisfy company underwriting guidelines. Not all applicants qualify. Information and pricing are subject to change at any time and without notice. The content in this advertisement is for informational purposes only.

EQUAL HOUSING

LENDER

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ASKING ASKING YOURSELF YOURSELF THE THE RIGHT RIGHT QUESTIONS QUESTIONS Do I need a Loan Officer?

Do I need a Loan Officer?

The best way to know how much you can afford, and put yourself in the best possible position when The best way to know how much you can afford, and put yourself in the best possible position when it’s time to make an offer, is to get a pre-approval from a reliable mortgage lender. it’s time to make an offer, is to get a pre-approval from a reliable mortgage lender.

An experienced Loan Officer will An experienced Loan Officer will • Help you obtain pre-approval • Help you obtain pre-approval • Have access to a wide range of loan program that can meet most any need. Including loans with • Have access to a wide range of loan program that can meet most any need. Including loans with little or no downpayment, VA loans, or FHA loans which can be ideal for first time home buyers little or no downpayment, VA loans, or FHA loans which can be ideal for first time home buyers • Keep you up-to-date on the progress of your loan application through closing • Keep you up-to-date on the progress of your loan application through closing • Be able to assist you in identifying areas where you may be able to improve your credit score • Be able to assist you in identifying areas where you may be able to improve your credit score

Do I need a real estate agent?

Do I need a real estate agent?

Just like your Loan Officer, a qualified professional real estate agent has resources you’ll never be able to Just like your Loan Officer, a qualified professional real estate agent has resources you’ll never be able to find on your own. An experienced real estate agent will: find on your own. An experienced real estate agent will: • Have expertise of the local market and early access to new listing before they hit the internet.

• Have expertise of the local market and early access to new listing before they hit the internet.

• Have a good working knowledge of the neighborhood and local amenities • Have a good working knowledge of the neighborhood and local amenities • Be a better negotiator providing much needed perspective because they are not emotionally • Be a better negotiator providing much needed perspective because they are not emotionally involved in the sale. involved in the sale.

Buying a home without an agent can become a big hassle very quickly. Because a home purchase is a Buying a home without an agent can become a big hassle very quickly. Because a home purchase is a legally binding contract you will need access to an attorney. Also, remember that the real estate agent legally binding contract you will need access to an attorney. Also, remember that the real estate agent is paid by the seller, not the buyer. is paid by the seller, not the buyer.

Like any professional you hire, you want to make sure there is a good fit. Interview several realtors, ask Like any professional you hire, you want to make sure there is a good fit. Interview several realtors, ask them to provide references along with their sales history. them to provide references along with their sales history.

Michael Kaleikini

Direct: 702-918-0953

Loan Officer

NMLS# 1289907 16624 W. 159th St. Suite 601 Lockport , IL 60441

mkaleikini@afncorp.com

Branch NMLS# 836822. American Financial Network, Inc. is licensed by the Nevada Mortgage Broker Branch License (3688) under Nationwide Mortgage Licensing System (NMLS), unique identifier of 836822. Refer to www.nmlsconsumeraccess.org and input NMLS #237341 to see where AFN is a licensed lender. In all states, the principal licensed office of American Financial Network, Inc. is 10 Pointe Drive, Suite 330, Brea, CA 92821; Phone: (714) 831-4000 (NMLS ID#237341). This is not an offer for extension of credit or commitment to lend. All loans must satisfy company underwriting guidelines. Not all applicants qualify. Information and pricing are subject to change at any time and without notice. The content in this advertisement is for informational purposes only.

EQUAL HOUSING

LENDER

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MORTGAGE MORTGAGE CHECKLIST CHECKLIST Preparation is everything. These are the documents you’ll want to have Preparation is everything. These are the documents you’ll want to have ready to complete your loan application. Below is the information that is ready to complete your loan application. Below is the information that is typically required throughout the loan process. typically required throughout the loan process.

Copy of the following for each applicant: Copy of the following for each applicant: Drivers license Drivers license Social security card Social security card W-2’s from all employers for the past 2 years W-2’s from all employers for the past 2 years Paycheck stubs for the past 30 days Paycheck stubs for the past 30 days 2 years of tax returns complete 2 years of tax returns complete Bank statements for the past two months Bank statements for the past two months 401(k) and profit sharing statements 401(k) and profit sharing statements Complete quarterly or semi-annual statements for IRA’s, CD’s, money market fund, stocks, proof, Complete quarterly or semi-annual statements for IRA’s, CD’s, money market fund, stocks, proof, in the form of a bank statement, that any earnings resulting from investments was deposited and in the form of a bank statement, that any earnings resulting from investments was deposited and has cleared has cleared

For purchase transactions (some of these won’t be applicable until you have a property For purchase transactions (some of these won’t be applicable until you have a property under contract): under contract): The Purchase Contract The Purchase Contract Copy of your canceled Earnest Money Deposit Check Copy of your canceled Earnest Money Deposit Check

Contact Contact me me today today for for more more information! information!

Michael Kaleikini

Direct: 702-918-0953

Loan Officer

NMLS# 1289907 16624 W. 159th St. Suite 601 Lockport , IL 60441

mkaleikini@afncorp.com

Branch NMLS# 836822. American Financial Network, Inc. is licensed by the Nevada Mortgage Broker Branch License (3688) under Nationwide Mortgage Licensing System (NMLS), unique identifier of 836822. Refer to www.nmlsconsumeraccess.org and input NMLS #237341 to see where AFN is a licensed lender. In all states, the principal licensed office of American Financial Network, Inc. is 10 Pointe Drive, Suite 330, Brea, CA 92821; Phone: (714) 831-4000 (NMLS ID#237341). This is not an offer for extension of credit or commitment to lend. All loans must satisfy company underwriting guidelines. Not all applicants qualify. Information and pricing are subject to change at any time and without notice. The content in this advertisement is for informational purposes only.

EQUAL HOUSING

LENDER

booklet_316_01_0317

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