Homebuyer Guide with Ryan Skaggs

Becoming a HOMEOWNER with Ryan Skaggs

why PURCHASE?

Appreciation

Equity

Savings

Equity Loans

Freedom

AGE AND EDUCATION Influence, income and wealth

Interest Rates over the last 50 years

Housing Stays Strong Through Recessions

Is it STILL worth buying?!

Inventory (millions)

2007 4.0M

2023 1.08M

Source: Case-Shiller

Inventory at historic lows

FINANCIAL AND NON-FINANCIAL ASSETS

As a percentage of total wealth

BUYING vs. RENTING Renting

Historically

Your rent can go up based on your landlords' decision

R E A L

S T O C K S

E S T A T E

You will not be gaining any equity Most landlords do not allow pets

10%

*

5%

**

You can not make any changes to the home

Owning Appreciating value increases wealth

A $200,000 property that appreciates 5% has a return of $10,000

$200,000 up 5% = $10,000 Gain 5% Down Payment = $10,000

Capital from home equity Do what you want to the home No Landlord restrictions

That’s 100% Rate of Return! * Stock statistics based on NASDAQ performance, 2017-2022 ** Housing statistics source – St. Louis Federal Reserve, 2017-2022, National average

our mortgage PROGRAMS Conventional

Min. Down Payment: 3% • Min FICO – 620

FHA

Min. Down payment: 3.5% • Min FICO – 580

VA

100% Financing! • Min FICO – 580

JUMBO

Min. Down payment: 10% • Min FICO – 680

USDA

100% Financing! • Min FICO – 580

Renovation Loans / 203K

Min. Down payment: 3.5% • Min FICO – 580

Down Payment Assistance Ask us about qualifications!

*Subject to credit approval. Not all borrowers may qualify. Terms as of 1/17/2023 and subject to change without notice

importance of CREDIT What is a Credit Score?

A number that is calculated from information on a credit report and generally ranges between 300 and 850.

Why is it important?

A high credit score could save you thousands of dollars in mortgage interest payments over the life of your loan

Will pulling my credit hurt it?

What’s the minimum score to qualify?

We have programs that start at 580 FICO*

*Subject to credit qualification. Not all borrowers may qualify

homebuying PROCESS Step 1: Get Pre-Approved

Find out how much home you can afford.

Step 2: Find a real estate agent

We work with only the best real estate agents!

Step 3: Find your dream home Step 4: Make an offer Step 5: Home Inspection & Appraisal Step 6: Close on your Home!

documents NEEDED INCOME - W2 Employee Last two years W2’s for all borrowers Most recent 30 days pay stubs for all borrowers Last two years tax returns INCOME - Self-employed Last two years corporate tax returns (All schedules including K1’s) Last two years personal tax returns INCOME - Disability or Social Security SSI/Pension-Current Award Letter MISC: Current Unexpired ID for all borrowers Copy of Visa/work permit or Resident card (If applicable - front and back of ID) Most Recent Bank Statements for all accounts (All pages of the statements needed) Most Recent Retirement Statement (All pages of the statements needed) Divorce/Child Support Documentation (If applicable)

THE 10 “DO’S”

of the mortgage process Get Pre-Approved

Don’t change jobs

Get pre-approved with Neighborhood Loans

Maintain your current employment and income

Work with the homebuying experts

Log a paper trail

Such as a Real Estate agent and Loan Officer

Keep track of funds coming in and out of your bank account

Understand your FICO Score

Keep good records

We have programs that start at 580 FICO*

Keep good records and documentation

Keep lines of communication open

Pay your bills

We will be reaching out to you regarding your loan

Keep up with current bills and mortgage (if you have one)

Create a savings plan

Ask questions!

You will need cash for down payment and closing costs

We are here to help and answer any mortgage related questions you might have.

*Subject to credit approval. Not all borrowers may qualify

THE 10 “DON’TS”

of the mortgage process Quit Your Job

Automobile

Do not change jobs, become self-employed, or quit your job.

Do not purchase a car

Credit Cards Do not use credit cards excessively or let current accounts fall behind.

Debt & Liabilities Do not omit debt or liabilities from your loan application.

Hard Inquiries Do not originate any inquiries into your credit.

Bank Accounts Do not change bank accounts.

Waste $$$ Do not spend money you have set aside for closing

Furniture Do not purchase furniture

Deposits Do not make large deposits without asking your loan officer

Co-Signing Do not co-sign for a loan for anyone

Find me: Ryan Skaggs Mortgage Loan Originator OFFICE: 773.569.8692 TEAM TEXT: 847.906.1627 Ryan@Neighborhoodloans.com NMLS# 425763