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