{' '} {' '}
Limited time offer
SAVE % on your upgrade.

Page 1

HOME. Where your story happens.


Your Mortgage Experts Jamie Beaton

15 Years NMLS 697319 jamie.beaton@envistacu.com 785-228-8016 “My favorite part of assisting people in the home buying process is helping them develop their plan for becoming homeowners. From repairing credit to generating a savings plan to finalizing the documents, being able to see everything come together from beginning to end is exciting and fulfilling.”

Steven Parkin

5 Years NMLS 1333054 steven.parkin@envistacu.com 785-228-8019 “The excitement people have when it comes to closing on their home is contagious. It is fun to listen to the plans they have for their new home. I enjoy being able to educate and empower our members, while helping make their dreams become reality.”

Josh Perry

5 Years NMLS 1323608 josh.perry@envistacu.com 785-228-8026

2

“I enjoy helping people achieve their dream of owning a home. Whether it’s someone buying their first home to a couple buying the home they plan on growing old in. Every situation is unique and that makes every one of them exciting and rewarding.


Mortgage Loan Programs Comparison Chart

Loan Type Conventional

FHA

VA

USDA

Minimum Credit Score

650

620

620

620

Minimum Down Payment

3-5%

3.50%

0%

0%

0

1.75% of base loan amount

Starts at 2.15% of base loan amount

1% of base loan amount

Mortgage Insurance

Yes, if financing over 80% of the appraised value

Yes

No

Yes

Other Eligibility Requirements

Has a loan limit that can vary

Not restricted to 1st time buyers

Only service members, veterans or surviving spouses are eligible

Property must be in USDAeligible area

Funding Fee

* This information is estimated and is subject to change.

3


Conventional Loan Options A conventional loan is any mortgage that is not insured or guaranteed by the government. Conventional mortgages make up roughly 75-80% of all residential loans. Generally speaking, you can get a conventional loan if you have good credit, steady income and can afford the minimum down payment.

Conventional Loan Guidelines:

• Minimum down payment ranges from 3-5%. • Fixed rate terms are for 15, 20 or 30 years. • Private mortgage insurance is required if more than 80% of the home’s value is financed.

• No penalty for early payoff or extra principal payments. • Sellers are able to pay some closing costs. • Direct payments can be made at any Envista branch or online.

New homebuyers might want to consider the following options that require a very minimal down payment but still provides the ease offered by a conventional loan.

97% Home Possible Guidelines:

• Area Median Income Guidelines apply. • Purchase or No Cash Out Refinance. • No manufactured homes. • All borrowers must occupy home as their primary residence. • Homeownership Education Class is required. • Seller can still pay some closing costs. • Cannot have equitable interest in other properties. • Cap on origination fees.

97% Home One Guidelines:

• No income or geographic restrictions. • At least one borrower must be a first-time homebuyer (has not owned a home in 3 years).

• No manufactured homes. • All borrowers must occupy home as their primary residence. • Homeownership Education Class is required if all borrowers are first time homebuyers (same course as Home Possible).

4

• Seller can still pay some closing costs.


VA Loan The VA (Veteran Affairs) loan program is designed for members of the Military, Veterans’ Reservists and National Guard members with little or no money needed for the down payment. Spouses of military members who died while on active duty or as a result of a service-connected disability may also be eligible.

Guidelines:

• Eligible for purchasing or refinancing a property. • Only for owner-occupied property. • Credit score can be as low as 620. • No down payment is required. • Borrowers must pay an upfront funding fee, but no private mortgage insurance is required.

USDA Loan USDA Loans are also known as the USDA Rural Development Guaranteed Housing Loan Program that offers mortgage loans to rural property owners by the United States Department of Agriculture. This loan program offers zero down payment mortgages for rural and suburban home buyers with low household income.

Guidelines:

• Eligible for purchasing or refinancing a property. • Loans are for owner-occupied property. • Credit score can be as low as 620. • No down payment is required. • Sellers contribute 6% of purchase price.

5


FHA Loan FHA loans are government-backed mortgages. They are insured by the Federal Housing Administration. The program is designed for low-to-moderate income borrowers that may have challenged credit and/or unable to make a large down payment. Perfect for, but not exclusive to, first time homebuyers.

Guidelines:

• Eligible for purchasing or refinancing a property. • Credit score can be as low as 620. • Minimum down payment is 3.5% of the purchase price. • Seller contributions are up to 6% of purchase price. • Flexible term options with competitive rates. • Gift money is allowable. • More flexible underwriting guidelines when bankruptcy or past foreclosures appear on credit.

• Upfront mortgage insurance and a monthly premium are required.

6


“Our realtor introduced us to a mortgage advisor at Envista. He was very informative of the process of mortgage financing for our first home. He was very knowledgeable and respectful of any and all questions we had. Steven was very patient with us and most of all he had our back. Envista was able to help make our dream of homeownership, our reality. Our experience of buying our home was great!” —Gloria M.

7


Land & Construction Loans Land Loan Guidelines:

Land loans are limited to: • The purchase or improvement of land on which the borrowers intend to build their home. • The purchase or improvement of land, which will enhance the borrower’s adjacent resident property. • Property of less than 40 acres within the field of Envista’s membership.

Construction Loan Guidelines:

• A construction loan is a 9-month term with interest only payments.

• Plans and specs are required to get final approval/appraisal started.

• A professional general contractor is required. • The loan is for up to 80% of the appraised value of the plans/land.

8


“There are enough worries and decisions when building a home. Envista made it easy and handled all of our contractor invoices and questions quickly and without error. With Envista, I felt confident knowing the check would be in the mail the next day, keeping my contractors paid and on task.” —Katie H.

9


Additional Loan Programs FHLBank Grant Program:

FHLBank’s Homeownership Set-aside Program assists qualified first-time homebuyers with down payment, closing costs and purchase-related repairs.

5 & 10 Year Refinance Accelerator:

Lower cost program geared for those eager to pay off their home quickly.

Home Equity Loan:

Utilize the equity in your home to do whatever you choose with a fixed or variable rate.

10


Preapproved

What does that even mean? Is it important? Getting preapproved by a lender gives you a competitive advantage when shopping for your home and is necessary when submitting an offer on a house. Taking this important step can make the difference between a seller accepting your offer or moving on to the next buyer. It will also give you parameters on what you can afford and insights into the monthly cost of your dream home.

Preapproval Tips Provide to your lender: • 30 days of the most current paystubs. • 2 years of W-2’s. • 30 days of bank statements. Your lender will ask for more information and documentation. What the lender considers: • All three credit reports are pulled to review your scores, analyze your outstanding debts and review your past payment history. • Debt-to-income ratio with a goal below 43%. Calculate your debt-to-income ratio: Total Monthly Payments

(potential mortgage, installments, credit cards and student loan monthly payments)

Total Monthly Income (all applicants’ gross income)

Debt-toIncome Ratio

What else should I know? Keep in mind all the costs. Just because you are preapproved for a certain amount does not mean you should spend the full amount. Usually your mortgage payment will be increased to include property taxes and homeowners’ insurance. Adjustments can be made. Your lender can easily make adjustments so your preapproval letter can match your offer. Timing is everything. Your approval is usually good for 90 days. Don’t start the process too early or it will lead to additional credit reports being needed.

11


6 Items to Check When Buying a Home

Once you have found a house you love, decide if any professional inspections should be done and determine who should pay for those inspections during contract negotiations. A whole house inspection, which is often recommended, will take a broad overview of the house. The Roof Usually a seller or their realtor can tell you exactly how old the roof is. If you have concerns, arrange for your insurance agent or a roofing professional to come take a look.

Heating and Air ✔ Another potential costly repair could be the furnace and/or

cooling systems. These can often be expensive to fix or replace and inefficient ones can lead to costly utility bills. Most sellers are willing to provide their monthly utility expenses as well.

Plumbing ✔ Check underneath the sinks and examine any pipes for

leaks, water damage and mold. Not only could this lead to a necessary repair, but mold can cause health problems.

The Lay of the Land ✔ Is the area prone to flooding or fires? Does water drain away

from the house properly? Is there a shared driveway or fence? Have these been built and positioned correctly?

Insulation ✔ You will want a home that is warm in the winter and cool in the summer. Having a home that is properly insulated will also lead to lower bills. Take a look in the attic and locate water pipes to make sure they are all properly protected. Double-paned windows can make a big difference as well.

Notice the Smell ✔

12

Sewage systems can get clogged or damaged over time. Having a sewer camera inspection is becoming more common. You will also want to note any pet odors, cigarette smells or mildew. This could cause an uncomfortable living environment or lead to repairs.


Top 10 Things to Avoid When Purchasing a Home

To ensure your home buying process is a pleasant experience, avoid these 10 common mistakes that can influence your transaction during the purchase process. change jobs, become self-employed or quit your job. X Don't

X

Don't buy a car, truck or van.

X

Don't use credit cards excessively or let your accounts fall behind.

X

Don't spend money that has been set aside for closing costs.

X

Don't omit debts or liabilities from your loan application.

X Don't buy furniture on credit. X

Don't apply for additional loans or credit cards.

X

Don't make large deposits without checking with your lender.

X

X

Don't change bank accounts. Don't co-sign a loan for someone else.

13


Your Monthly Payment Calculator

Principal and Interest (P&I) Your principal and interest payment depends on your home loan amount, the interest rate, and the number of years it takes to repay the loan. Principal is the amount you pay each month to reduce the loan balance. Interest is the amount you pay each month to borrow money. Many principal and interest calculators are available online.

Amount

$

Mortgage Insurance Mortgage insurance is often required for loans with less than a 20% down payment.Â

$

Homeowner's Insurance You can call one or more insurance agents to get an estimate for homes in your area. Ask if flood insurance is required.

$

Homeowner's Association or Condominium Fees (if they apply)

14

Condominiums and other planned communities often require homeowner’s association (HOA) fees.

$

Property Tax

$

My Estimated Total Monthly Home Payment

$


“We were pleased at the ease of accomplishing our long term goal of paying off our home. We locked into a great rate and closed on a 15-year mortgage. Upon retirement, we will own our home free and clear. Thank you, Envista!” —Craig M.

15


n

envistacu.com

16

Profile for Envista Credit Union

Home Buyer's Guide | Topeka  

HOME. Where your story happens. Everything you need to know throughout the homebuying process.

Home Buyer's Guide | Topeka  

HOME. Where your story happens. Everything you need to know throughout the homebuying process.

Profile for envistacu