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AGENCY ONE, INC. 301 S. FERDON BLVD CRESTVIEW, FL 32536 850-699-6384 @CherylPurvinesRealtor




PrimeLending and RE/MAX Agency One, Inc. are not affiliated. All loans are subject to credit approval. Rates and fees subject to change. Mortgage financing provided by PrimeLending, a PlainsCapital Company. Equal Housing Lender. ® 2020 PrimeLending, a PlainsCapital Company. PrimeLending, a PlainsCapital Company (NMLS: 13649) is wholly owned subsidiary of a state-chartered bank and is an exempt lender in FL. V021216.

Your Journey Home While thinking about buying your new home is exciting, running through all the questions about how to make it happen can feel overwhelming. That’s why we created this home buying guide to answer many of your questions and give you insight into how you can buy with confidence. Over the next few pages, we’re going to cover: • Down Payments • Mortgage Rates • Credit Scores • The Home Loan Process • Affordable Home Loan Solutions • Dynamics between Renting and Owning If you have more questions at the end or need additional information, we’re here to help.


The Schutt Team Home Buyer Guide

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Should I Rent or Own? This is an age-old argument, but whether you choose to rent or buy is completely up to you. Each has their benefits and ultimately whatever your long-term goals are will determine what’s right for you. Let’s cover the basics. Sample Payment Scenarios Monthly Rent

5 Years

10 Years

30 Years





Home Sales Price

30 Year, Fixed-Rate Mortgage at 4% Interest, and 3% down payment Monthly Payment

Payment Over 30 years




The average first time home buyer age 29-35 spends less than $200,000 on their first home.


The Schutt Team Home Buyer Guide

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Renting Renting means you don’t take any risk in owning or maintaining a property. If something breaks or stops working, that’s typically not your responsibility to fix. Renting also gives you easier moving flexibility if you need to break a lease. When it comes to your rent, that money will go to your complex or landlord every month. You also may have other unpredictable financial obligations you have to pay, such as application fees, deposit or pet fees. They may also choose to raise your rent.

Owning Owning a home gives you a level of freedom, space and privacy you may not find elsewhere. While you're paying a mortgage payment every month, you’re paying for something you own while your property is building equity and value over time. Another major perk is the stability of your payments. Unlike renting, when you own a home, you are responsible for all maintenance and upkeep. Homeownership is also a long-term commitment, has more upfront fees like a down payment and closing costs, and gives you less flexibility if you need to move quickly for one reason or another.

The Millennial Generation earns and spends more on rent than any other previous generation.

Conclusion: This comparison is really just an overview of renting and buying. Before you make the decision that is right for you, it’s important to review all advantages and disadvantages of renting and owning. Working with The Schutt Team can be helpful as you set your short- and long-term financial goals.


The Schutt Team Home Buyer Guide

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What Numbers Matter? A lot of variables go into buying your new home. From interest rates to your credit score to your debt, all are important to the approval process and play a role in determining how much home you can afford.

Credit Score When it comes to your credit, the higher the better. Ultimately, your credit score will help determine whether or not you qualify for a home loan and what your interest rate will be. If you need to build up your credit, start now. Always remember that you can check your score once a month for free on sites like or, or talk to your personal financial institution.

Mortgage Interest Rate

Debt-to-Income Ratio (DTI)

Mortgage rates are an important piece of the home buying equation. While you may see rates advertised at various places online, the truth is, your rate is determined by your financial situation, which accounts for income and credit history. Plus, mortgage interest rates fluctuate based on market conditions, so timing matters as well.

DTI is a major factor in qualifying for a home loan. It’s calculated by adding up all your monthly debt payments and dividing them by your gross monthly income. Typically, a percentage below 43% is considered acceptable when qualifying for a mortgage. $2,000 Monthly Rent $6,000 Monthly Income

= 33% DTI

Average Credit Scores 2018



EXCEPTIONAL (800-850) VERY GOOD (740-799)

17 % 25%

FAIR (580-669)



GOOD (670-739)

POOR (300-579)

The Schutt Team Home Buyer Guide

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What is a Credit Score? Credit Score is a three-digit number using information in your credit report designed to predict risk. Specifically, the likelihood you will become seriously delinquent on credit obligations in the next 24 months. Think of your credit score as your GPA for handling bills and debt. There are several credit scoring models in existence, but there's one that dominates the market -- the FICO credit score. According to, "90 percent of all financial institutions in the U.S. use FICO scores in their decision-making process." A consumer has three FICO scores provided by the three major credit bureaus: Equifax, Experian, and TransUnion.

What goes into a Credit Score? Data from your credit report goes into five major categories that make up a FICO score. The scoring model weighs some factors more heavily, such as payment history and debt owed. Payment History: (35 percent) Your account payment information including any delinquencies and public records. Amounts Owed: (30 percent) How much you owe on your accounts. The amount of available credit you're using on revolving accounts is heavily weighted. Length of Credit History: (15 percent) How long ago you opened accounts and time since account activity. Types of Credit Used: (10 percent) The mix of accounts you have such as revolving and installment. New Credit: (10 percent) Your pursuit of new credit, including credit inquiries and number of recently opened accounts.


The Schutt Team Home Buyer Guide

What’s the Deal with My Down Payment? You may have heard about the 20% rule, but it’s just not true. Sure, you can put 20% down on your home, but by no means is that your only option to homeownership. At PrimeLending, our home buyer programs range from zero down to however much you want to put down. Here are a few examples of options available to you with details on each:




Down Payment Required


Low minimum credit score requirement. Low minimum down payment requirement. Insured by the Federal Housing Administration.

As low as 3.5%


Guaranteed by the U.S. Department of Veterans Affairs. Borrowers can finance 100% of their home.

No down payment or mortgage premiums required


Home buyers’ assistance for those in rural and suburban areas who may have lower incomes.

No down payment and closing costs are rolled into the loan for qualified buyers

HomeReady® by Fannie Mae

Borrowers can use additional income sources from family members who live in the home, but aren’t listed on the loan, in order to qualify. Can also use funds from gifts.

As low as 3%

Freddie Mac Home Possible®

Down payments can be funded via gifts or grants.

As low as 3%

Bond/ Community Lending Programs

Very similar to USDA without property location limitations.

Typically 0% and often with closing cost assistance

The Schutt Team Home Buyer Guide

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What are My Home Loan Options? Every home buyer is different. That’s why we offer numerous home loan programs that fit various budgets and situations. Loan




Pay as little as 3% to 5% for a down payment.

Straightforward option with fewer docs. Requires great credit.


Pay as little as 3.5% and is a great option with fair to good credit.

Can purchase with less upfront cash. Must pay mortgage insurance premium on loan amount.


No down payment requirement. Great for first time home buyers.

USDA has location restrictions and limits on household income.


No down payment for current or former military members.

See next page for more details on using the VA loan program.


Jumbo loans are loan amounts in excess of the county loan limits.

Qualifying requirements will very depending on your situation.

There are other options, such as a purchase renovation loan, that could fit your situation. A renovation loan allows you to purchase a fixer-upper and create the home you really want. 8

The Schutt Team Home Buyer Guide

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VA Mortgage Loans

VA Funding Fees First Use: 2.30% Subsequent Use: 3.60% 5% Down ; Any Use: 1.65% 10% Down; Any Use: 1.40%

Valuable Information VA loans are for active duty or former Airforce, Army, Navy, Marine, Coast Guard, Reservist, and National Guard members. VA loans require NO down payment. VA loans can be used to renovate your home. VA refinance loans allow you to borrow up to 90% of the home value. A veteran is entitled to utilize their VA Eligibility multiple times. Veterans can have more than one VA loan on more than one property at a time. There is no PMI (private mortgage insurance) on VA loans. The VA Funding fee is waived for veterans receiving disability. Qualifying guidelines for VA are the least restrictive of all traditional mortgage options. A VA loan is the highest performing loan thus typically has the lowest interest rates. VA closings can occur just as quickly as any other loan program.


The Schutt Team Home Buyer Guide

How Does the Mortgage Process Work? Buying a home is a big decision, and there are a lot of moving parts for both home buyers and lenders. What we’ve done at PrimeLending is simplify that process to deliver a transparent and simple experience that gets you home in 4 easy steps.

1 2 3 4 10

Application Process Our online application process, named a Best-in-Class Lender Award for Application Process by MortgageSAT 2018, captures all the info we need to get you pre-qualified, make a loan recommendation and give you an estimate.

Confirm Property Information The property will need to be appraised and there will need to be a legal search on the property title. We will coordinate this for you and let you know when each step is complete.

Processing and Underwriting Our team will review your application and any other documents while working through any last-minute questions before making a decision about your loan.

Sign and Close We’ll double-check that everything is in place for a smooth, on-time closing. Once you get the thumbs up, it’s time to sign papers, pay closing costs and own your first home.

Set a price range Compare loan options Decide on down payment amount Get pre-qualified Get your Loan Estimate Intent to proceed

Property appraisal Property inspection Title search

Loan approval Lock a rate Order title insurance Schedule closing

Receive Closing Disclosure Closing costs and cash needed to close (if necessary) Closing instruction Sign final documents

The Schutt Team Home Buyer Guide

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30 Day Flow Chart Loan App Signed

Home Inspection Complete?

DAY 1-7

We will order appraisal

Processor to review. Have you provided everything from the document checklist?

1st Submission to Underwriting

DAY 8-14

Are all Underwriting conditions met? Was appraisal sufficient?

If not, we will wait to order the appraisal if time allows (One week after contract or 28 days before closing)

If not, our processor will contact you for any remaining documents needed

If not, processor will notify you of any documents to meet conditions. Appraisal conditions must be met.

2nd submission to underwriting for final

Final approval issued. Did you bind insurance?

DAY 15-21

Do we have title documents? (Title Company to provide)


Sign “initial” CD

DAY 22-30

Closing instructions are sent to Title Company who issues “final” CD.


Sign mortgage documents on closing date. Enjoy your new home!


The Schutt Team Home Buyer Guide

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How Do Lenders Play a Role? Your loan officer will be an essential part of your homebuying process, which is why it’s so important to find the right one. From application to underwriting to closing, your loan officer will be there to guide you every step of the way. While technology significantly streamlines the application process and can help you track the progress of your loan, your loan officer will be able to provide you with all of the resources you need, give personalized consultation, send loan comparisons and pre-approval letters, answer questions, prepare all important documents for review and approval, and so much more.


The Schutt Team Home Buyer Guide

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IS YOUR LOCAL LENDER! Working with The Schutt Team provides LESS STRESS for you in the home buying process! Meet face-to-face or utilize our digital platform for your home mortgage process. DON’T FORGET—We’re always accessible on our team mobile and team email.

As a real estate professional myself, there was only one choice for me when it came time to purchase a home. The Schutt Team exceeded my expectations, keeping me updated throughout the process with emails, calls, and texts. Their passion for providing the best customer service experience shows in all that they do. Mark H., Homebuyer & Realtor®

COMMUNICATION IS THE KEY We take pride in proactively communicating throughout the loan process. The Schutt Team identified 9 Points-of-Contact that correlate to your loan stages, from Introducing Our Team all the way to Post-Closing Follow-Up. By using those 9 Points, The Schutt Team updates all parties involved to ensure a smooth closing. OKALOOSA COUNTY’S #1 PURCHASE LENDER FOR 6 YEARS as ranked by Metro Market Trends for purchase units from 01/12—12/18.

TIME IS PRICELESS Fast Pre-Qualifying You Can Count On

+ In Office Processing with File Control


Direct Access to Underwriters

= Fast Approvals and Closings

TOP 1% OF MORTGAGE ORIGINATORS IN AMERICA FOR 6 YEARS as ranked by Mortgage Executive Magazine 2012—2018.


Steve Schutt


Adam Vafides

as ranked by Scotsman Guide 2018.

Sr. Loan Officer NMLS 342876

Team Loan Officer NMLS 1390352

Laurie Noel Team Loan Officer NMLS 813623


The Schutt Team Home Buyer Guide

850-897-8971 | 1054 JOHN SIMS PKWY | NICEVILLE, FL 32578

Team Lead, a.k.a. Steve Schutt, is a #NicevilleNative who grew up on the sports fields of the NHS. Steve graduated a Niceville High School Eagle who soared down to Gainesville to become a Florida Gator. After many football games and good times in The Swamp, Steve moved back to where he got his start. Before making the jump into mortgage, Steve owned a chain of scrumptious ice cream shops that locals still crave. Steve is a devoted husband to his wife, Leanne, and a loving father to four beautiful children. On any given Sunday, you can find Steve serving at his church, out on the lake with his family & friends, or traveling across our great nation. Steve genuinely cares about those around him and always lends a kind ear. Steve is the glue that holds The Schutt Team together so it’s only fitting that it bears his name. Some say Steve missed his calling as a soccer coach, but luckily for us, he created a different type of team.

Laurie Noel has been part of Steve’s team longer than everyone. She started with the PrimeLending team in 2011 and also spent a year with Steve at a prior company. Laurie is the life of our team. She keeps us on our toes and makes sure everyone is pulling their weight. If not, she’s sure to let us know! We believe her greatest joy is teaming up with her bestie Dawn Eubanks and “mentoring” Adam Vafides with more life suggestions than he realizes he needs. Laurie is loyal and consistent. She always does whatever is needed to support our team, our customers, and our business partners. Outside of work, Laurie enjoys life with her husband and daughter, going out on her boat, babysitting her nephew, and people watching! Laurie makes coming to work every day a blast. We look forward to many more years hearing her laughter in the office.

Adam Vafides, like our “Team Lead” Steve Schutt, is a Niceville native who grew up playing Niceville baseball and even football (in his neighbor’s yard off of 19th St). Prior to coming to work for The Schutt Team, Adam owned his own beach service and worked in boat/yacht sales as well as the cell phone business. You’ll often catch him on the golf course Saturday mornings and possibly at the range in the evening. Golf is a staple in his life. Had it not been for his pesky college baseball career, we may be watching him play on the PGA tour these days. All kidding aside, Adam is a vital part of our team. Adam is Steve’s “right hand man,” and Steve often refers to the day he hired Adam as being the day his work life changed forever. The Schutt Team could not be what it is without Adam’s humor, commitment to details, and willingness to do whatever it takes to serve our customers.

Dawn is the backbone of The Schutt Team Machine. Without her thoroughness and attention to detail, our process would not be what it is today. She is a constant bright light on our team. Rarely will you catch Dawn without a smile on her face even in the midst of what most would consider very stressful and difficult days. Dawn has been in the mortgage business since 2002 on both the sales and operations. We have had the privilege of her being part of our team since January of 2016. She is a blessing to work alongside and for our customers to have working on their behalf. Outside of work, Dawn is a loving wife and mother. She loves God, the Gators (especially Tim Tebow), getting her nails done, and traveling to visit her children and family. We love our Principal Dawn even when she calls us to her office!

Erica Nelson, Marketing Assistant to The Schutt Team. Erica is vital to our team’s success in business and in enjoying our workplace. In a nutshell, she helps foster and enhance our relationships with customers and business partners alike. She’s the welcoming smile you see when you walk in the door and immediately takes what can feel like a stressful moment away. Erica is a Northwest Florida Native and a proud mother to her “Nugget” Emma and wife to Luke. On the weekend, Erica and her family love listening to live music, visiting local parks, and attending festivals as well as serving in their churches children’s ministry on Sundays. She treats the office and those she’s close to with delicious meals and baked goodies often. If you come to one of our events, you will find her either running around making sure everything is operating smoothly or behind a camera capturing the fun. We couldn’t do what we do without her!


The Schutt Team Home Buyer Guide

Common Mortgage Terms Amortization — The gradual reduction of the mortgage debt through regularly scheduled payments over the term of the loan.

Escrow — An item of value, money, or documents deposited with a third party to be delivered upon the fulfillment of a condition.

Annual percentage rate (APR) — The measure of the cost of credit stated as a yearly rate; includes such items as the stated interest rate, plus certain charges.

Mortgage insurance — Insurance that protects lenders against losses caused by a borrower’s default on a mortgage loan.

Appraisal — A written estimate or opinion of a property’s value prepared by a qualified appraiser. Debt-to-income (DTI) ratio — The connection between a borrower’s total monthly debt payments and his or her gross monthly income.

Prequalification — A preliminary assessment by a lender of the amount it will lend to a potential home buyer. Principal — The amount of money owed on a loan, excluding interest. Also, the part of the monthly payment that reduces the remaining balance of a mortgage.

Discount point (or point) — A fee paid by the borrower at closing to reduce the interest rate. A point equals 1% of the loan amount.

FAQs What is a prequalification letter and why should I have one? A prequalification letter comes from the lender and states that the lender agrees to provide a mortgage to you, the home buyer, under certain conditions. Prequalification letters help you set realistic financial goals while you’re house hunting. Additionally, they can provide you with the same negotiating ability as a cash buyer and enable you to move quickly once you find the perfect home. What will my monthly payment be? That depends on several factors, but every mortgage payment is part principal, interest, and taxes and insurance (or PITI). What are closing costs? Closing costs are expenses that fall above the price of the property that are incurred by buyers and sellers in the process of transferring ownership of a property. These costs usually include an origination fee, discount points, appraisal fee, title search and insurance, survey, taxes, deed recording fee, credit report charge and other costs assessed at settlement. Closing costs will vary according to the area of the country; we will provide estimates of closing costs for you. When do I lock my interest rate? Once under contract we will discuss where the market stands and what rate options are available to 'lock in.' With our rate Float Down Option, we have your back! If interest rates rise, you have nothing to worry about - you're 'locked in.' But if interest rates go down, the PrimeLending Float Down Option allows your rates to fall with it. Ask our team for more details. 15

The Schutt Team Home Buyer Guide - Additional Resources

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MORTGAGE PROCESS We’ve been guiding homeowners through the home loan process for more than 15 years. During that time, we’ve learned how to help our customers avoid mistakes that could jeopardize your loan application. Here are some tips to help make sure everything goes smoothly.



• Notify us if your salary or other compensation changes from what is noted on your loan application. • Inform us if your address changes from what appears on your original loan application.

• Acquire any additional credit lines or make any large purchases on existing credit. Buying a car or buying appliances for your new home will change your debt-to-income ratios.

• Obtain homeowner’s insurance with minimum coverage equal to the amount of your total loan or the replacement value of the house.

• Change jobs. A change in compensation may affect your ability to qualify. Lenders may verify employment on the day of closing as a quality control check.

• Keep documentation (“paper trail”) on any large deposits into your account: copies of all paperwork necessary to prove a financial transaction, including all checks, deposit slips, loan paperwork, forms to liquidate assets, etc.

• Co-sign with anyone to obtain a line of credit or make a purchase. It will show up on your credit report as an additional debt.

• Notify us if you move funds from one account to another. Provide a “paper trail” on all transactions

• Negotiate your contract with an allowance and expect to get money back at closing. An allowance can be used to pay closing costs and/or prepaids.

Questions? Call Today Mobile: 850-897-8971


The Schutt Team Home Buyer Guide - Additional Resources

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If you notice any of the following as you’re taking a look at a house or potential listing, you’ll want to let your clients know ahead of time so there are no surprises during the appraisal and mortgage process.

Using a Conventional loan: Major Issues: Lenders require a professional to evaluate the condition of the home • Mold, dampen basements • Cracked foundation • No working utilities Minor Issues: These issues may not affect the loan, but they may affect the value of the home • Tattered flooring • Damaged drywall

Using an FHA loan:

Using a VA loan:

Major Issues: These issues must be repaired prior to closing

Major Issues: These issues must be repaired prior to closing

• No working utilities and


• Exposed wiring • Peeling paint on both interior

or exterior for homes built before 1978 • Tripping hazards caused by

uneven payment

main, sewer, gas and power

• Evidence of termites and

other pests • Leaky roof • Insufficient heating systems

• Location of well and septic

• Broken windows, signs of

• GFIC outlets required near

• Visible structural damage

need to be 10 ft. away from property line water sources

Minor Issues: Lenders may require a professional inspection and advise if anything needs repairs • Discoloration on walls or



• Separate shutoff for water

The Schutt Team Home Buyer Guide - Additional Resources

mold, fungus, peeling paint or exposed wires • Unvented gas fireplaces • Two or more risers require

a handrail

Documents Needed at Loan Application ALL BORROWERS □ Copies of W-2’s and/or 1099’s for the last two years □ Copies of paycheck stubs/military retirement statements for the last 30 days (most current) □ Copies of checking and saving account statements for checking, savings, IRA’s CD’s money market fund, stock, 401k, profit sharing, etc. (statements required for two most recent months) □ Copy of driver’s license for applicant and co-applicant □ Copy of sales contract when ratified □ Complete Tax Returns for two most recent years (all schedules) □ Employment history for the last two years (address any gaps of employment) □ Residency history over the last two years, with name, phone number, address of landlord □ Rental property mortgage statement, tax bill, insurance bill, HOA (If applicable) □ Canceled earnest money check when it clears or corresponding bank statement, if applicable □ Payment method for the expense of appraisal □ If a mortgage was paid off in the last 6 months, need copies of HUD1 SELF-EMPLOYED BORROWERS □ Copy of current profit & loss statement and balance sheet □ Copy of corporate/partnership tax returns for most recent 2 year period if owning 25% or more of company – copies of W-2’s and/or 1099 forms. DOCUMENTS WHICH MAY BE REQUIRED □ Relocation Agreement if move is financed by employer, i.e. buyout agreement plus documentation outlining company paid closing costs benefits □ Previous bankruptcy, foreclosure, or short sale: copies of petition for bankruptcy and discharge, including supporting schedules and any foreclosure or short sale documentation □ Documentation supporting moneys received from social security/retirement trust income, i.e. copies of direct deposit bank statements, awards letter, etc. □ Divorce Decree DOCUMENTS NEEDED FOR VA LOANS □ DD214 Discharge Paper; Name, address, phone number and relationship of nearest living relative; and, Child Care payment information.


The Schutt Team Home Buyer Guide - Additional Resources

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Loan Type Comparison: Purchase & Refiance Each of our clients will require a personalized approach to their home purchase or REFI. There are several factors that would allow them to utilize one loan product over another. Use the chart below to further your understanding of our broad range of loan products.

Down Payment Requirements






Mortgage Ins./ Fees

When to Use


PMI w/o 20% Down

Clients with high qualifying factors


1.75% upfront MIP & 0.85% annually (paid in monthly increments)

Clients without high qualifying factors


See VA FAQ’s flyer


1% guarantee fee & 0.35% annually (paid in monthly increments)

Client has served or is currently in the armed forces FTHB, all areas north of Eglin & most of Walton County

Misc. Max Loan Amount: $510,400

Max Loan Amount: (per county) OC/WC: $391,000 SRC: $331,760 NO Max Loan Amount with full eligibility available Income Limits: (For OC, WC, SRC) $86,850/$114,650

Based on Specific Investor Guidelines

The Schutt Team Home Buyer Guide - Additional Resources

Profile for Cheryl Purvines, REMAX Agency One

Buyer Guide - PrimeLending  

Real Estate, Buyer Guide, Home, Buying, Purchasing, New Home, Detail, Loan Programs, VA, FHA, USDA, Conventional

Buyer Guide - PrimeLending  

Real Estate, Buyer Guide, Home, Buying, Purchasing, New Home, Detail, Loan Programs, VA, FHA, USDA, Conventional