Homebuyer Handbook | Andy Lesher + Wayne Hayes

Homebuyer Handbook

A Guide to Your Home Financing Journey themoneystore.com/lo/andy-lesher | hayeshometeam.com

Contents

Introduction 1 Our Company 2 Your Mortgage Team 3 Your Agent 4 Client Testimonials 5 Digital Application 6 Homebuying Steps 8 Dos and Don’ts 9 Document Checklist 11 Credit Scores 13 Glossary 15

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INTRODUCTION

Ready for an amazing mortgage experience?

Buying a home is an exciting journey and a major life milestone. As you begin this process, we’re looking forward to providing all the services and solutions you need for a smooth, enjoyable, and rewarding homebuying experience.

The biggest contributor to a successful home purchase is preparation. In this booklet, you’ll find Sincerely, Your Money Store Mortgage Team

1 | HOMEBUYER HANDBOOK | INTRODUCTION

an introduction to our team and company as well as useful information and advice on the home financing process. Please review these materials so you can be prepared for the steps ahead.

Don’t hesitate to contact any member of our team with your questions or concerns at any time. We look forward to helping make your homeownership goals a reality!

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OUR COMPANY

Get to know The Money Store The Money Store has been a trusted mortgage brand since 1972. We are a family-owned, privately held lender that serves homebuyers and homeowners from coast to coast. Our mission is to help people achieve their homeownership goals while saving them time, money, and stress. We provide a first-class home financing experience and proudly maintain a 98% customer satisfaction rating.1

☐ Mortgages are 100% of our business

☐ Timely and transparent in-house loan processing

☐ Highly competitive rates and fees

☐ We service the majority of our loans

☐ Wide range of flexible loan options

☐ A+ Better Business Bureau rating

1. Based on client reviews from Experience.com for 8/1/2023 through 8/1/2024. Source: https://www.experience.com/reviews/company/the-money-store-47994

HOMEBUYER HANDBOOK | OUR COMPANY | 2

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YOUR MORTGAGE TEAM

Meet your loan officer Andy Lesher NMLS ID # 1933007

Branch Sales Manager O: 708-832-3651

M: 630-677-0142

andy@themoneystore.com themoneystore.com/lo/andy-lesher 8945 W. 151st Street, Suite #2 Orland Park, IL 60462 Andy Lesher is a seasoned mortgage professional with more than 20 years of industry experience. As your partner on your home financing journey, Andy will listen to your needs and goals, tailor a mortgage solution specifically for you, and advise and guide you from start to finish. He is passionate about going above and beyond to deliver the service and results you deserve.

Meet your team Isabel Perez Sales Assistant 708-736-8138

iperez@themoneystore.com

Isabel works directly with Andy to gather the necessary initial documentation from you, and she will stay in contact with you throughout the process to ensure everything runs smoothly. Once all your paperwork is received, she’ll pass your loan file on to David.

David Pinelli Loan Processor 708-312-0210

dpinelli@themoneystore.com

David is responsible for preparing your loan file for initial submission to underwriting and guiding it all the way through to closing. He will analyze and validate all your documents throughout the process and resubmit any back to underwriting for review before passing your file on to closing.

3 | HOMEBUYER HANDBOOK | YOUR MORTGAGE TEAM

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YOUR AGENT

Meet your agent Wayne Hayes Lic. # 475.166203

Real Estate Broker | Principal Agent 331-215-7844 hayes@hayeshometeam.com hayeshometeam.com 2430 W. Indian Trail, Suite 203 Aurora, IL 60506 Wayne Hayes brings the benefit of over 30 years of experience in sales, customer service, technology, and business to every client. His strong business background and sincere interest in helping people set Wayne apart as an agent. Along with his partner and wife, Corrie, he provides clients with high levels of service, competency, and integrity. At the end of the day, the best part of real estate for Wayne and Corrie is seeing their clients’ happy faces at closing. For their team, it’s about service and making people’s dreams come true.

HOMEBUYERHOMEBUYER HANDBOOK |HANDBOOK THIS IS THE | FOOTER YOUR AGENT TEXT | 4 7

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CLIENT TESTIMONIALS

See what our clients are saying Andy and his team are amazing!

They were on top of everything and super supportive.

— SABRINA R.

Andy is best in class.

Prompt with his responses and definitely a subject matter expert that listens to his clients and adapts accordingly.

— RONALD B.

We couldn’t be more pleased!

Thanks to the Hayes Home Team, we found our ideal home and had our offer accepted in less than a week. We love the home we now live in, and we have referred others to them.

— DAN H.

We had a fantastic experience working with the Hayes Home Team.

We found them knowledgeable, professional, and dedicated to helping us find the perfect home.

They were both always available to answer any questions we had throughout the process.

— PAM J.

5 | HOMEBUYER HANDBOOK | CLIENT TESTIMONIALS

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DIGITAL APPLICATION

A better way to apply for your mortgage Financing your home is faster and easier with The Money Store’s digital mortgage experience. Through our website or mobile app, you can securely and conveniently navigate your home financing journey from your smartphone, tablet, or computer.

☐ Apply in 10 minutes or less ☐ Get preapproved fast

☐ Access mortgage and real estate tools ☐ Switch between the app and website at any time

☐ Scan and upload your documents

☐ E-sign your forms ☐ Track your loan status ☐ And more!

HOW TO GET STARTED: 1. Visit the link below, or scan the code with your phone’s camera.

2. Follow the prompts to create your account and start your application.

3. Download the app when prompted, or continue using your web browser.

themoneystore.com/lo/andy-lesher/apply

HOMEBUYER HANDBOOK | DIGITAL APPLICATION | 6

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HOMEBUYING STEPS

10 steps to buying a home Choose a Real Estate Agent

Get Preapproved

Shop for a Home

Negotiate the Purchase

We’ll review your basic You and your agent You’ll select a real qualifications and will browse home You and your agent estate agent to work preapprove you for listings and tour will make an offer on with and plan your your home financing. properties to find the a home and negotiate home search. right home for you. a price and contract.

Apply for a Mortgage You’ll apply for your loan and provide required documentation, and we’ll process your application.

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Home Inspection and Appraisal

Underwriting

Clear to Close

Final Walkthrough

Closing

Our underwriter will review your application and request any additional items required from you.

If everything is in order, we’ll give the final approval for your loan.

You and your agent will walk through the home again to ensure it’s in the same condition as before.

You’ll sign your final documents, pay your closing costs, and receive the keys to your new home. Congrats!

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Licensed professionals will assess the home’s condition and value.

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This is a general overview of a typical homebuying process. The exact steps and order may vary based on various factors and events.

Mortgage programs are subject to approval based on program guidelines, borrower’s credit and underwriting approval, acceptable appraisal, and clear title. Rates, terms, and conditions may apply. Programs are subject to change at any time. This is not a commitment to lend. Contact your MLD Mortgage, Inc. dba The Money Store mortgage loan originator for full program details and requirements.

HOMEBUYER HANDBOOK | HOMEBUYING STEPS | 8

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DOS AND DON’TS

Important dos and don’ts Don’t let an innocent mistake put your mortgage in jeopardy! To help keep your home financing on track, here are some important dos and don’ts to follow until your loan has closed.

What To Do ☐ Do have easy access to all your pay stubs, bank statements, and other financial documents. ☐ Do continue to make all your bill payments on time. ☐ Do notify us immediately if you experience or expect any changes to your employment.

What Not To Do ☐ Don’t fail to make any of your bill payments on time. ☐ Don’t change jobs, become selfemployed, or quit your job. ☐ Don’t make any major purchases, such as a car or furniture.

☐ Do notify us if you plan to receive gift funds for closing.

☐ Don’t open, close, cosign, or increase any liabilities, such as credit cards or loans.

☐ Do provide your earnest money deposit from your own personal bank account or acceptable gift funds.

☐ Don’t make any large deposits or withdrawals other than automated payroll.

☐ Do ask any and all questions you may have throughout the process.

☐ Don’t open or close any asset accounts or move money between accounts.

Your credit and other qualifications will be checked again before your loan closes, so it’s essential to follow these guidelines until after your closing. If you have or expect to have any difficulty upholding these guidelines, please contact us immediately.

9 | HOMEBUYER HANDBOOK | DOS AND DON’TS

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DOCUMENT CHECKLIST

Your document checklist Please be prepared to provide copies of the following documents for your mortgage application. Submitting these items promptly is important for keeping your financing on schedule.

If multiple people will be listed on your new mortgage, please provide these items for each person if applicable.

Unless instructed otherwise, all pages for every document must be provided, even if blank. Additional documents may be required in some circumstances.

You may submit your documents through The Money Store mobile app or website (which have their own interactive checklist), email, regular mail, or in person.

Standard Requirements

☐ Current and previous addresses for the last 2

☐ Personal federal income tax returns for the most

☐ Names, addresses, and dates of employment

☐ Most recent 2 monthly or quarterly statements for

☐ Letter/email explaining any gaps in your

☐ Current mortgage statement, property tax bill,

years and duration of residence at each location

for all employers within the last 2 years

employment within the last 2 years

recent 2 years* (not required in all cases)

banking, investment, and retirement accounts

☐ Pay stubs for the most recent 30 days ☐ W-2 and/or 1099 forms for the most recent 2 years* * Some mortgage programs require fewer or more years of documentation.

11 | HOMEBUYER HANDBOOK | DOCUMENT CHECKLIST

homeowners insurance declaration, and HOA dues statement (if applicable) for all properties owned

If Applicable

☐ Landlord’s name, email, and phone to verify last 12 months of rental history (if currently renting)

☐ Award letter and copy of most recent check for retirement, Social Security, or disability income (if using such income to qualify)

☐ Social Security card (if applying for an FHA loan) ☐ DD Form 214 (if applying for a VA loan) ☐ Proof of residency, such as a resident alien or visa/EAD card (if a foreign citizen)

☐ ☐ Divorce decree and settlement agreement

Homeowners association bylaws and contact info

☐ Child support documentation ☐ Mortgage modification documentation ☐ Foreclosure documentation ☐ Bankruptcy papers, including discharge ☐ Tax lien payment plan ☐ Names of people who are not on the mortgage application but will be on the title

☐ Trust documents for a property held in trust ☐ Copy of note and mortgage on existing

secondary financing that will be subordinating

If Self-Employed

☐ Business federal income tax returns for the most recent 2 years, signed and dated

☐ Year-to-date profit and loss statement and current balance sheet, signed and dated

☐ K-1 forms Home Purchase Requirements

☐ Your and the seller’s real estate agents’ contact info ☐ Home sale contract and Closing Disclosure (CD) for any recently sold home Your and the seller’s attorneys’ ☐ contact info (if applicable) ☐ Proof of payment of earnest money (updated bank statement or a daily summary showing 4 Homeowners insurance quote or insurance digits of account number and earnest money ☐ agent’s name, phone, and email

check(s) or wire(s) clearing the account)

☐ Home purchase contract (final version with all addendums)

HOMEBUYER HANDBOOK | DOCUMENT CHECKLIST | 12

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CREDIT SCORES

Understanding your credit scores

What Are Credit Scores?

There What Are Credit Scores?

Credit scores are 3-digit numbers that assess your likelihood of repaying borrowed money on time. Every person with a credit history typically has three credit scores – one for each major credit bureau: Experian, TransUnion, and Equifax.

There are also multiple credit score models, which are different ways of calculating your three scores. Mortgage lenders use specific versions of the FICO Score model to assess the creditworthiness of mortgage applicants.

How Do Your Credit Scores Affect Your Mortgage Application?

There What Are Credit Scores?

Your credit scores help determine which mortgage options and interest rates you qualify for. Generally, if you have high scores, you’ll qualify for more loan options and a lower interest rate than if you had lower scores.

16 13 HOMEBUYER | HOMEBUYER HANDBOOK HANDBOOK | CREDIT | CREDIT THIS SCORES IS THE SCORES FOOTER | 14 TEXT

When you apply for a mortgage, all three of your credit scores are considered, and the lowest middle score of all applicants on the loan is typically used. Because lenders use specific FICO Score models, the scores used on your application may differ slightly from the numbers you’ve seen when checking your own scores.

35+30+1510E

10% Credit mix

10% New credit

15% Length of credit history

35% Payment history

30% Amounts owed

What Determines Your Credit Scores?

FICO Scores use a scale from 300 to 850, with higher scores being better. Your scores are based on your credit history, which is recorded in a separate credit report at each of the three credit bureaus. FICO Scores are calculated using the following five aspects of your credit history: ☐ 35% Payment history: on-time payments are best

☐ 15% Length of credit history: a long history is best

☐ 30% Amounts owed: low utilization of credit limits is best

☐ 10% New credit: minimal recently opened credit is best

☐ 10% Credit mix: a mix of credit types is best (e.g., credit cards and installment loans)

Note: The percentages above are subject to change.

MLD Mortgage, Inc. dba The Money Store and its employees do not provide credit advice. This material has been prepared for general informational purposes only and is not intended to provide and should not be relied on for such advice. Do not act or refrain from acting on the basis of this material without first consulting a qualified professional for advice.

HOMEBUYER HOMEBUYER HANDBOOK HANDBOOK | THIS IS THE | CREDIT FOOTER SCORES TEXT | 14 17

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GLOSSARY

Mortgage terminology This glossary defines some of the common terms you may encounter during your mortgage process.

Adjustable-Rate Mortgage (ARM) A mortgage with an interest rate that remains constant for an initial fixed period of time and then adjusts at a prearranged frequency

Amortization A monthly repayment schedule in which a loan is repaid in fixed payments of principal and interest

Annual Percentage Rate (APR)

Closing Disclosure (CD) A form that provides final details about a mortgage loan, such as loan terms and projected monthly payments and closing costs, and must be provided to the borrower by the lender at least three days before the loan closes

Co-Borrower Any additional borrowers whose names appear on the loan documents

Collateral

A property being financed that a borrower The annual cost of a loan, expressed offers to a lender to secure a loan as a yearly rate that reflects interest, discount points, lender fees, and mortgage Contingency insurance, thus being slightly higher than the interest rate on the loan A condition that must be satisfied before a contract is legally Application / URLA binding and a sale can close An initial statement of personal Conventional Loan and financial information required to approve a mortgage loan A mortgage that is not guaranteed or insured by any government agency

Appraisal

A written estimate of a property’s current market value, based on recent sales information from similar properties and the current condition of the property

Cap Limits on changes in adjustable-rate mortgage (ARM) interest rates or monthly payments, either in an adjustment period or over the life of the loan

Debt-to-Income Ratio (DTI) Total monthly debt payments (including projected payments for a new mortgage) divided by monthly income

Equal Credit Opportunity Act (ECOA) Federal law requiring creditors to make credit equally available without discrimination based on race, color, religion, national origin, age, sex, marital status or receipt of income from public assistance programs

Equity The percentage of a property’s value held by the owner, which is the difference between the property’s value and the amount owed on the mortgage

Escrow The neutral third party that holds money and/or documents until the escrow instructions are fulfilled

Fair Credit Reporting Act The law that protects consumers through federal regulations on the total interest paid over the life of a loan and procedures to repair errors on a person’s credit report

Fannie Mae A government-sponsored enterprise that buys and sells conventional mortgages

Department of Veterans Affairs (VA)

Federal Housing Administration (FHA)

The government agency that manages benefits and other issues for Veterans of the military

A division of Housing and Urban Development (HUD) that insures residential mortgage loans and sets standards for underwriting

Change in Circumstance

Discount Points

A form that accompanies a revised Loan Estimate (LE) and details what has changed on the revised LE

See: Points

FHA Loan

Down Payment

A loan insured by the Federal Housing Administration

Closing Costs Expenses paid by the borrower and/ or seller during the closing, which can include the loan origination fee, discount points, attorney’s fees, title insurance, appraisals, etc.

15 | HOMEBUYER HANDBOOK | GLOSSARY

The portion of a home purchase price that is paid upfront at the closing of the purchase, which is the difference between the purchase price and the loan amount

Earnest Money A deposit made by a buyer in evidence of good faith when the purchase agreement is signed

Fixed-Rate Mortgage

A mortgage with an interest rate that doesn’t change for the life of the loan

Freddie Mac A government-sponsored enterprise that purchases conventional mortgages

Ginnie Mae The government corporation that purchases conventional mortgages from HUD-approved bankers

Mortgage Insurance Premium (MIP) An insurance premium that a borrower is required to pay on an FHA loan

their primary residence to allow them to cancel if they so choose

Second Mortgage A subordinate mortgage made in addition to a first mortgage

Homeowners Insurance (HOI)

Mortgage Servicer

Insurance that covers an individual’s

The financial institution or entity that is responsible for collecting payments on a mortgage

Term

Mortgagee Clause

TILA-RESPA Integrated Disclosure Rule (TRID)

home against damages to the home or possessions in the home as well as accidents in the home or on the property

Housing and Urban Development (HUD) A U.S. government agency established to implement federal housing and community development programs and that oversees the Federal Housing Administration

Index A benchmark rate used to determine the rate on an adjustable-rate mortgage (ARM) after the initial rate expires

Interest Rate The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets

Jumbo Loan A mortgage larger than the conforming loan limits set by the Federal Housing Finance Agency (FHFA)

Loan Estimate (LE) A form that provides important details about a loan and must be provided to the borrower by the lender within three days of the lender receiving the loan application

Loan-to-Value Ratio (LTV) The percentage of a property’s value that is borrowed

Lock-In Rate A lender’s guarantee of an interest rate for a set period of time

Margin The amount of percentage points, or spread, added to an index to determine the rate an adjustable-rate mortgage will charge after each adjustment

Mortgage A document that creates a lien on a property as security for the payment of a debt

A provision of a homeowners insurance policy that protects the lender (the mortgagee) from losses incurred due to damage to the insured property

PITI An acronym used to describe monthly housing expenses: principal, interest, taxes, and insurance

Points Funds paid at closing to the lender, with one point equal to 1% of the loan amount

Preapproval

The number of years until a loan is due to be paid in full

A rule that consolidates four existing disclosures, applicable to most closedend borrower credit transactions secured by real property, into two forms: the Loan Estimate (LE) and the Closing Disclosure (CD)

Title A document that gives evidence of ownership of a property as well as rights of ownership and possession

Title Insurance

A preliminary approval from a lender to loan a borrower a specific amount of money

Insurance that protects the lender (lender’s policy) or buyer (owner’s policy) against loss due to disputes over property ownership

Prepayment Penalty

Underwriting

A charge for paying off a loan prior to the end of the prepayment penalty period (certain loan types only)

Prequalification A basic review by a lender determining the loan amount for which a borrower may qualify

Principal The amount of debt on a loan that does not include interest

Private Mortgage Insurance (PMI) Insurance that a borrower is typically required to purchase on a conventional loan with an LTV above 80%

Refinance The process of paying off one loan with the proceeds from a new loan secured by the same property

Right of Rescission A 3-day waiting period after signing the closing documents granted to the borrower on a refinance transaction of

The process of verifying data and evaluating a loan application for approval

VA Loan A home loan available to eligible military Veterans and surviving spouses with little or no down payment and guaranteed by the Department of Veterans Affairs (VA)

VA Loan Funding Fee The fee financed or paid upfront associated with a VA loan

Verification of Deposit (VOD) A document signed by the borrower’s bank or other financial institution that verifies the borrower’s account balance and history

Verification of Employment (VOE) A document signed by the borrower’s employer that verifies the borrower’s position and salary

HOMEBUYER HANDBOOK | GLOSSARY | 16

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EQUAL HOUSING OPPORTUNITY Mortgage programs are subject to approval based on program guidelines, borrower’s credit and underwriting approval, acceptable appraisal, and clear title. Rates, terms, and conditions may apply. Programs are subject to change at any time. This is not a commitment to lend. Contact your MLD Mortgage, Inc. dba The Money Store mortgage loan originator for full program details and requirements.

MLD Mortgage, Inc. dba The Money Store, NMLS ID # 1019 (www.nmlsconsumeraccess.org). Located at: 30B Vreeland Rd, Ste 200, Florham Park, NJ 07932. Phone: 973805-2000. Licensed by the New Jersey Department of Banking and Insurance, license # 99117842. View our licensing at: www.themoneystore.com/statelicensing.

View our privacy policy at: www.themoneystore.com/privacy. © 2024 MLD Mortgage, Inc. dba The Money Store. All Rights Reserved. 00100-02. 12/2024.