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Learn more about becoming
a homeowner
Eric Hamilton
Home Mortgage Consultant
NMLSR ID 414113
Welcome!

By attending this workshop, you are
taking an important step toward your
homeownership goal.

This workshop will help you gain a basic
understanding of how the homebuying and
home financing process works. So you’ll
know what to expect and be better able to
make informed decisions.




                                            1
In today’s workshop, we’ll address:


 Benefits and costs of
  homeownership


 Credit basics


 Home financing basics


 Homebuying basics




                                      2
Benefits and costs of
homeownership




                        3
What are the benefits of homeownership?

 Opportunity to build home equity
    The principal portion of every mortgage payment you make has the
     potential to grow your home like an asset.


 Predictable monthly payments
    Unlike rent, the principal and interest portions of your monthly payment
     cannot increase, if you have a fixed rate mortgage.


 Potential tax advantages
    Your mortgage interest and real estate property taxes are usually tax
     deductible when you file your income tax returns. Consult your tax advisor
     for details.

 More control over space
    You can decorate and renovate to reflect your personal style.



                                                                                  4
Is now a good time to buy a home?



                           Owning a home is both an opportunity
                           and a responsibility. Being ready to
                           buy a home depends on many factors,
                           including your own personal situation.


                           Overall, now may be a good time to buy
                           for financially qualified customers with
                           historically low mortgage interest rates
                           and ―buyers market‖ home sale prices.




                                                                      5
What are the costs of homeownership?



If you use a mortgage to help buy a home, you will
repay more than the loan amount you borrow.

How much you repay is determined by several
factors, including:
    Loan amount
    Interest rate
    Loan term
    Discount points
    Origination charge




                                                     6
What are the costs of homeownership?

Interest rate
 The interest rate is the percentage of your loan amount a lender charges
  you to borrow money to buy your home.
 Interest rates are based on current market conditions, your credit score,
  the down payment you make, and the type of mortgage you choose.



Loan term
 Your loan term is the amount of time you have to pay off your mortgage
  balance.
 Shorter loan terms typically mean higher monthly mortgage payments, but
  often have lower interest rates. And because you pay off your mortgage
  within a shorter period, you may pay less in total interest than with a
  longer-term mortgage.




                                                                              7
What are the costs of homeownership?

Discount points
 One point equals 1% of your mortgage amount.
 If you qualify, you may be able to pay one or more points to lower your
  interest rate. A lower interest rate means lower monthly mortgage
  payments.
 Points are usually tax deductible. Consult a tax advisor on the deductibility
  of interest.



Origination charge
 Includes fees charged by the lender (other than discount points) for items
  such as underwriting, loan processing and other expenses.
 In addition to the origination charge are fees charged by third parties such
  as a credit report fee, appraisal fee and county fees.




                                                                                  8
What makes up a mortgage payment?
After buying a home, you will be responsible for making a monthly mortgage
payment. A mortgage payment is typically made up of four parts: principal,
interest, taxes, and insurance.

   Principal is the amount of money you borrow to buy a home.
   Interest is the cost of borrowing money. The amount of interest you pay is
    determined by your interest rate and your loan balance.
   Taxes are the property charges collected by your local government. Lenders or
    mortgage servicers typically collect a portion of these taxes in every mortgage
    payment and hold the funds in an account (called an escrow account) to make tax
    payments on your behalf as they become due.
   Insurance is referred to as homeowners or hazard insurance and provides protection
    against property damage due to certain risks such as wind or fire. Like property taxes,
    homeowners insurance payments are typically collected by the lender, held in an
    escrow account, and then paid on your behalf to the insurance company.

Also plan to pay mortgage insurance with less than a 20% down payment.
Mortgage insurance protects your lender in case you fail to repay your mortgage.
Whether or not mortgage insurance is required usually depends on the lender’s
specifications and the size of your down payment.
                                                                                              9
What are closing costs?

 Closing costs pay for the services of various real estate and lending
 related professionals who assist you with your home purchase — plus
 anticipated costs that will occur before you make your first mortgage
 payment. Closing costs vary based on lender, type of mortgage and
 location of the home, but may include:


                                   Loan origination fees
                                   Home appraisal fees
                                   Escrow reserves
                                   Property taxes
                                   Title insurance




                                                                         10
What is a Good Faith Estimate?


                           A Good Faith Estimate will be
                           provided by your lender and will
                           detail the approximate costs you will
                           pay on or before your loan closing.


                           You may be able to add your closing
                           costs to your loan amount to limit
                           how much out-of-pocket cash you’ll
                           need to close.


                           Your down payment, if applicable,
                           will also be due at closing.




                                                                   11
What additional costs should I consider?
The costs of homeownership go beyond the monthly mortgage payments.
Added financial responsibilities to consider include:


    Utility bills
    Furnishings
    Landscaping
    Home maintenance/repairs
    Appliances
    Lawn mower/snow blower
    Homeowner Association Dues




                                                                      12
Myth or truth?




As a rule of thumb, it is
recommended that you keep
your housing expense level at
or below 28% of your gross
monthly income.




                                13
Truth



But even if you fall within this
rule of thumb, be sure you feel
comfortable about making
monthly mortgage payments
and still keeping up with all
your other monthly financial
obligations.




                                   14
Credit basics




                15
What role does my credit play in financing a home?


                                           Lenders consider your credit history
                                           and credit score when making decisions
                                           about loan approval, interest rate, loan
                                           amount, and the type of loan you may
                                           qualify for.

                                           They also consider the cash you have
                                           available for a down payment and
                                           closing costs, your income, and your
                                           existing debt and financial obligations.



   Requirements vary based on the type of mortgage, so work with your home
   mortgage consultant to determine options based on your specific situation.




                                                                                      16
What credit qualifying guidelines do lenders consider?
 The housing expense-to-income ratio (or
  front-end ratio) compares your anticipated
  monthly mortgage payment (principal,
  interest, taxes and insurance) to your total
  household gross monthly income (pre-taxed).

 The debt-to-income ratio (or back-end ratio)
  compares your anticipated monthly mortgage
  payment (principal, interest, taxes and insurance),
  plus your other monthly debt obligations to your
  gross (pre-taxed) monthly earnings.
    Monthly debt includes:
        Credit cards
        Car loans
        Student loans
        Consumer loans
        Other financial obligations such as child
         support and alimony

                                                         17
Do you know where you stand?

                          It’s a good idea to review your credit reports and
                          know your credit score — especially if you plan to
                          apply for a home mortgage.



 Do I pay my bills, loans, credit cards and other debt on time?

 Do I have a lot of other outstanding debit?

 What’s my credit history and credit score?


Help is available - The Wells Fargo My Home RoadmapSM service provides up
to two free hours of personalized financial coaching to help customers prepare
for homeownership — conveniently, right over the phone.1




1. The My Home RoadmapSM service provides up to four sessions (an estimated 2 hours) of free financial coaching with a
National Foundation for Credit Counseling (NFCC) certified counselor from a NFCC member organization that will be paid for by
Wells Fargo Home Mortgage. At your option, you may purchase additional coaching sessions or services or decide to participate
in another NFCC member agency program. Program may change or be discontinued at any time.
                                                                                                                                18
How can I find out what’s in my credit report?

                 It’s a good idea to review your credit reports
                 regularly to keep track of your credit history,
                 especially if you plan to apply for a home mortgage.



Your credit report captures key data about you and your finances:
 Personal information — Variations of your name (if any), addresses where
  you’ve lived, phone number(s) and employment history
 Potentially negative items — Public records of bankruptcy, liens and court
  judgments. Also credit accounts with defaults and late payments in the last seven
  years
 Accounts in good standing — All current revolving and installment accounts,
  with balances and payment histories
 Requests for your credit report — Including requests for credit you initiate and
  information about creditors who are monitoring your credit


You can order a free credit report from each of the three main credit bureaus one
time per year. Go to annualcreditreport.com, or call 877-322-8228.
                                                                                      19
How do credit scores work?
Lenders use your credit score to determine how much risk they may assume if you
borrow money from them.
    The higher your credit score, the lower your credit risk
    Customers with low credit scores may face higher down payment requirements
     and higher interest rates


The three main credit bureaus generally calculate your credit score based on:
    Payment history (about 35% of the score)
    Amounts owed (about 30%)
    Length of credit history (about 15%)
    Recently opened credit accounts (about 10%)
    Types of credit in use, such as credit cards and consumer loans (about 10%)




For a small fee, you can learn your credit score when you order your free
credit report.

                                                                                   20
Myth or truth?




Generally, about one third of
your credit score depends on
whether you consistently pay
your bills on time month after
month.




                                 21
Truth




One of the most important
things you can do to maintain
good credit is to make timely
bill payments.




                                22
Home financing basics




                        23
What types of loans should I consider?
Conventional loan
    A mortgage not obtained under a government program (such as FHA or VA).
     Either conforming or non-conforming.

Government loan
    A mortgage obtained under a government program, such as FHA or VA
     (for qualified military personnel), often featuring low or no down payment
     options and flexible qualifying guidelines

Fixed-rate mortgage
    The interest rate and principal and interest payments remain the same for the
     life of the loan
    Often chosen by buyers who plan to stay in their home for a long period of time

Adjustable-rate mortgage (ARM)
    The interest rate may go up or down on pre-determined dates to reflect market
     conditions
    Often chosen by buyers who think they might sell, move or refinance within a
     few years
                                                                                       24
How do loan options compare?

                     Fixed-rate   Adjustable-rate    FHA/VA
                     mortgages      mortgages       mortgage
                                                    programs

Predictable
monthly payments
                        ✓                             ✓

Lower monthly
payments in the
                                        ✓             ✓
loan’s early years

A low down
payment option
                                                      ✓

A higher loan
amount for higher-
                        ✓               ✓
priced properties




                                                               25
What about renovation financing?
   With renovation financing, you can buy a home a home in most any condition, make
    improvements right away, and roll the cost of the improvements into your mortgage.
   Today’s real estate market features a variety of properties – including foreclosures
    and short sale properties – that may be attractively priced, but need minor or major
    improvements.
   Renovation financing lets you consider more homes for sale, knowing you’ll be able
    to bring out the best in a home by making improvements you want or need.
   A Purchase & Renovate loan allows you to get financing based on the appraised
    value of the home after improvements are made, so your improvement costs are
    included in your purchase loan amount.
   Improvements can range from basic repairs and upgrades like floor replacement or
    new appliances, to more extensive renovations like room additions or complete
    rebuilding on an existing foundation.
   A Purchase & Renovate loan fulfills two needs with just one application, one loan
    approval, one closing and one monthly mortgage payment.
   Plus, the improvements you make may also increase the value of your home.
   A certified renovation lending specialist can help you understand your renovation
    financing options and work with you every step of the way.


                                                                                           26
Myth or truth?




You must have a 20% down
payment to buy a home.




                           27
Myth



Certain financing options, such
as FHA loans, require as little as
3.5% down – and VA loans
could require 0% down.




                                     28
Homebuying basics




                    29
Speak with a home mortgage consultant

                   Your home mortgage consultant can:

                    Help you review your income, assets and debts
                     and help you explore loan options that may fit
                     your financial situation
                    Be your contact throughout the home financing
                     process:
                      • Helping you understand the information and
                        documentation you may need to provide for
                        your loan application
                      • Letting you know what to expect and when
                      • Answering your questions and working with
                        you every step of the way




                                                                      30
Apply for a PriorityBuyer® preapproval2


 Find out how much you may be                                                                                                                     able to
  borrow.

 Let REALTORS® and home sellers                                                                                                                know
  you're a serious homebuyer.

 Bid with confidence on the home                                                                                                                   you
  want.




2. A PriorityBuyer® preapproval is based on our preliminary review of credit information only and is not a commitment to lend.
We will be able to offer a loan commitment upon verification of application information, satisfying all underwriting requirements
and conditions, and providing an acceptable property, appraisal and title report. Not available on nonconforming products or for certain FHA transactions.


                                                                                                                                                             31
Choose a REALTOR®
A good REALTOR should have a working knowledge of the area where you’re
thinking of buying and can help you:
    Decide what you want in a home
    Search the Multiple Listing Service (MLS) and other resources for homes in
     your price range that match your needs
    Show you potential homes, listed by any agency
    Provide valuable information on communities, comparable values of
     neighboring homes, tax rates and building code regulations.
    Help you make an appropriate bid on a home you want to buy and act as an
     intermediary between you and the seller, during the negotiating process.


Tip: Note the names of REALTORS on ―For Sale‖ signs as you drive through
neighborhoods of interest. Ask friends and family members and your home
mortgage consultant for referrals. Check the websites of local realty companies,
too. When you’ve got a list of potential REALTORS, interview at least two or three
of them.


                                                                                     32
What happens next?

 Work with your REALTOR® to find a neighborhood and home that’s right for you

 Once you’ve found the home, make an offer to the seller, who will accept,
  counter or reject it

 When the price is settled, you may want to consider ordering a home inspection

 Your lender will order an appraisal to assess the home's market value

 Get homeowner’s insurance

 Close your mortgage and purchase transactions and become a homeowner!




Please note: This is a high level overview of what happens during the
homebuying process. Your home mortgage consultant will work with you each
step of the way and provide a step-by-step checklist when you begin the home
financing process.

                                                                                   33
How can Wells Fargo help?
As a fair and responsible lending leader,
Wells Fargo is ready to help you find financing
that serves your immediate and long-term
home financing needs. We want to see you
choose a mortgage that will help keep you
comfortably in your home for years to come.



Wells Fargo Home Mortgage consultants are
trained to pay attention to your goals, help
you understand your options, and clearly
explain how different loan programs work.
So you can make informed decisions.



Learn more about buying a home.
Visit our My FirstHomeSM learning experience today!
wellsfargo.com/myfirsthome
                                                      34
Thank you for attending




                                          We look
                                          forward to
                                          helping you
                                          achieve your
                                          homeownership
                                          goals.




    Information is accurate as of date of printing and is subject to change without notice.
    Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. © 2012 Wells Fargo Bank, N.A. All rights
    reserved. NMLSR ID 399801. #102824                                                               REV 6/12
                                                                                                                 35

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Becoming A Homeowner

  • 1. Learn more about becoming a homeowner Eric Hamilton Home Mortgage Consultant NMLSR ID 414113
  • 2. Welcome! By attending this workshop, you are taking an important step toward your homeownership goal. This workshop will help you gain a basic understanding of how the homebuying and home financing process works. So you’ll know what to expect and be better able to make informed decisions. 1
  • 3. In today’s workshop, we’ll address:  Benefits and costs of homeownership  Credit basics  Home financing basics  Homebuying basics 2
  • 4. Benefits and costs of homeownership 3
  • 5. What are the benefits of homeownership?  Opportunity to build home equity  The principal portion of every mortgage payment you make has the potential to grow your home like an asset.  Predictable monthly payments  Unlike rent, the principal and interest portions of your monthly payment cannot increase, if you have a fixed rate mortgage.  Potential tax advantages  Your mortgage interest and real estate property taxes are usually tax deductible when you file your income tax returns. Consult your tax advisor for details.  More control over space  You can decorate and renovate to reflect your personal style. 4
  • 6. Is now a good time to buy a home? Owning a home is both an opportunity and a responsibility. Being ready to buy a home depends on many factors, including your own personal situation. Overall, now may be a good time to buy for financially qualified customers with historically low mortgage interest rates and ―buyers market‖ home sale prices. 5
  • 7. What are the costs of homeownership? If you use a mortgage to help buy a home, you will repay more than the loan amount you borrow. How much you repay is determined by several factors, including:  Loan amount  Interest rate  Loan term  Discount points  Origination charge 6
  • 8. What are the costs of homeownership? Interest rate  The interest rate is the percentage of your loan amount a lender charges you to borrow money to buy your home.  Interest rates are based on current market conditions, your credit score, the down payment you make, and the type of mortgage you choose. Loan term  Your loan term is the amount of time you have to pay off your mortgage balance.  Shorter loan terms typically mean higher monthly mortgage payments, but often have lower interest rates. And because you pay off your mortgage within a shorter period, you may pay less in total interest than with a longer-term mortgage. 7
  • 9. What are the costs of homeownership? Discount points  One point equals 1% of your mortgage amount.  If you qualify, you may be able to pay one or more points to lower your interest rate. A lower interest rate means lower monthly mortgage payments.  Points are usually tax deductible. Consult a tax advisor on the deductibility of interest. Origination charge  Includes fees charged by the lender (other than discount points) for items such as underwriting, loan processing and other expenses.  In addition to the origination charge are fees charged by third parties such as a credit report fee, appraisal fee and county fees. 8
  • 10. What makes up a mortgage payment? After buying a home, you will be responsible for making a monthly mortgage payment. A mortgage payment is typically made up of four parts: principal, interest, taxes, and insurance.  Principal is the amount of money you borrow to buy a home.  Interest is the cost of borrowing money. The amount of interest you pay is determined by your interest rate and your loan balance.  Taxes are the property charges collected by your local government. Lenders or mortgage servicers typically collect a portion of these taxes in every mortgage payment and hold the funds in an account (called an escrow account) to make tax payments on your behalf as they become due.  Insurance is referred to as homeowners or hazard insurance and provides protection against property damage due to certain risks such as wind or fire. Like property taxes, homeowners insurance payments are typically collected by the lender, held in an escrow account, and then paid on your behalf to the insurance company. Also plan to pay mortgage insurance with less than a 20% down payment. Mortgage insurance protects your lender in case you fail to repay your mortgage. Whether or not mortgage insurance is required usually depends on the lender’s specifications and the size of your down payment. 9
  • 11. What are closing costs? Closing costs pay for the services of various real estate and lending related professionals who assist you with your home purchase — plus anticipated costs that will occur before you make your first mortgage payment. Closing costs vary based on lender, type of mortgage and location of the home, but may include:  Loan origination fees  Home appraisal fees  Escrow reserves  Property taxes  Title insurance 10
  • 12. What is a Good Faith Estimate? A Good Faith Estimate will be provided by your lender and will detail the approximate costs you will pay on or before your loan closing. You may be able to add your closing costs to your loan amount to limit how much out-of-pocket cash you’ll need to close. Your down payment, if applicable, will also be due at closing. 11
  • 13. What additional costs should I consider? The costs of homeownership go beyond the monthly mortgage payments. Added financial responsibilities to consider include:  Utility bills  Furnishings  Landscaping  Home maintenance/repairs  Appliances  Lawn mower/snow blower  Homeowner Association Dues 12
  • 14. Myth or truth? As a rule of thumb, it is recommended that you keep your housing expense level at or below 28% of your gross monthly income. 13
  • 15. Truth But even if you fall within this rule of thumb, be sure you feel comfortable about making monthly mortgage payments and still keeping up with all your other monthly financial obligations. 14
  • 17. What role does my credit play in financing a home? Lenders consider your credit history and credit score when making decisions about loan approval, interest rate, loan amount, and the type of loan you may qualify for. They also consider the cash you have available for a down payment and closing costs, your income, and your existing debt and financial obligations. Requirements vary based on the type of mortgage, so work with your home mortgage consultant to determine options based on your specific situation. 16
  • 18. What credit qualifying guidelines do lenders consider?  The housing expense-to-income ratio (or front-end ratio) compares your anticipated monthly mortgage payment (principal, interest, taxes and insurance) to your total household gross monthly income (pre-taxed).  The debt-to-income ratio (or back-end ratio) compares your anticipated monthly mortgage payment (principal, interest, taxes and insurance), plus your other monthly debt obligations to your gross (pre-taxed) monthly earnings.  Monthly debt includes:  Credit cards  Car loans  Student loans  Consumer loans  Other financial obligations such as child support and alimony 17
  • 19. Do you know where you stand? It’s a good idea to review your credit reports and know your credit score — especially if you plan to apply for a home mortgage.  Do I pay my bills, loans, credit cards and other debt on time?  Do I have a lot of other outstanding debit?  What’s my credit history and credit score? Help is available - The Wells Fargo My Home RoadmapSM service provides up to two free hours of personalized financial coaching to help customers prepare for homeownership — conveniently, right over the phone.1 1. The My Home RoadmapSM service provides up to four sessions (an estimated 2 hours) of free financial coaching with a National Foundation for Credit Counseling (NFCC) certified counselor from a NFCC member organization that will be paid for by Wells Fargo Home Mortgage. At your option, you may purchase additional coaching sessions or services or decide to participate in another NFCC member agency program. Program may change or be discontinued at any time. 18
  • 20. How can I find out what’s in my credit report? It’s a good idea to review your credit reports regularly to keep track of your credit history, especially if you plan to apply for a home mortgage. Your credit report captures key data about you and your finances:  Personal information — Variations of your name (if any), addresses where you’ve lived, phone number(s) and employment history  Potentially negative items — Public records of bankruptcy, liens and court judgments. Also credit accounts with defaults and late payments in the last seven years  Accounts in good standing — All current revolving and installment accounts, with balances and payment histories  Requests for your credit report — Including requests for credit you initiate and information about creditors who are monitoring your credit You can order a free credit report from each of the three main credit bureaus one time per year. Go to annualcreditreport.com, or call 877-322-8228. 19
  • 21. How do credit scores work? Lenders use your credit score to determine how much risk they may assume if you borrow money from them.  The higher your credit score, the lower your credit risk  Customers with low credit scores may face higher down payment requirements and higher interest rates The three main credit bureaus generally calculate your credit score based on:  Payment history (about 35% of the score)  Amounts owed (about 30%)  Length of credit history (about 15%)  Recently opened credit accounts (about 10%)  Types of credit in use, such as credit cards and consumer loans (about 10%) For a small fee, you can learn your credit score when you order your free credit report. 20
  • 22. Myth or truth? Generally, about one third of your credit score depends on whether you consistently pay your bills on time month after month. 21
  • 23. Truth One of the most important things you can do to maintain good credit is to make timely bill payments. 22
  • 25. What types of loans should I consider? Conventional loan  A mortgage not obtained under a government program (such as FHA or VA). Either conforming or non-conforming. Government loan  A mortgage obtained under a government program, such as FHA or VA (for qualified military personnel), often featuring low or no down payment options and flexible qualifying guidelines Fixed-rate mortgage  The interest rate and principal and interest payments remain the same for the life of the loan  Often chosen by buyers who plan to stay in their home for a long period of time Adjustable-rate mortgage (ARM)  The interest rate may go up or down on pre-determined dates to reflect market conditions  Often chosen by buyers who think they might sell, move or refinance within a few years 24
  • 26. How do loan options compare? Fixed-rate Adjustable-rate FHA/VA mortgages mortgages mortgage programs Predictable monthly payments ✓ ✓ Lower monthly payments in the ✓ ✓ loan’s early years A low down payment option ✓ A higher loan amount for higher- ✓ ✓ priced properties 25
  • 27. What about renovation financing?  With renovation financing, you can buy a home a home in most any condition, make improvements right away, and roll the cost of the improvements into your mortgage.  Today’s real estate market features a variety of properties – including foreclosures and short sale properties – that may be attractively priced, but need minor or major improvements.  Renovation financing lets you consider more homes for sale, knowing you’ll be able to bring out the best in a home by making improvements you want or need.  A Purchase & Renovate loan allows you to get financing based on the appraised value of the home after improvements are made, so your improvement costs are included in your purchase loan amount.  Improvements can range from basic repairs and upgrades like floor replacement or new appliances, to more extensive renovations like room additions or complete rebuilding on an existing foundation.  A Purchase & Renovate loan fulfills two needs with just one application, one loan approval, one closing and one monthly mortgage payment.  Plus, the improvements you make may also increase the value of your home.  A certified renovation lending specialist can help you understand your renovation financing options and work with you every step of the way. 26
  • 28. Myth or truth? You must have a 20% down payment to buy a home. 27
  • 29. Myth Certain financing options, such as FHA loans, require as little as 3.5% down – and VA loans could require 0% down. 28
  • 31. Speak with a home mortgage consultant Your home mortgage consultant can:  Help you review your income, assets and debts and help you explore loan options that may fit your financial situation  Be your contact throughout the home financing process: • Helping you understand the information and documentation you may need to provide for your loan application • Letting you know what to expect and when • Answering your questions and working with you every step of the way 30
  • 32. Apply for a PriorityBuyer® preapproval2  Find out how much you may be able to borrow.  Let REALTORS® and home sellers know you're a serious homebuyer.  Bid with confidence on the home you want. 2. A PriorityBuyer® preapproval is based on our preliminary review of credit information only and is not a commitment to lend. We will be able to offer a loan commitment upon verification of application information, satisfying all underwriting requirements and conditions, and providing an acceptable property, appraisal and title report. Not available on nonconforming products or for certain FHA transactions. 31
  • 33. Choose a REALTOR® A good REALTOR should have a working knowledge of the area where you’re thinking of buying and can help you:  Decide what you want in a home  Search the Multiple Listing Service (MLS) and other resources for homes in your price range that match your needs  Show you potential homes, listed by any agency  Provide valuable information on communities, comparable values of neighboring homes, tax rates and building code regulations.  Help you make an appropriate bid on a home you want to buy and act as an intermediary between you and the seller, during the negotiating process. Tip: Note the names of REALTORS on ―For Sale‖ signs as you drive through neighborhoods of interest. Ask friends and family members and your home mortgage consultant for referrals. Check the websites of local realty companies, too. When you’ve got a list of potential REALTORS, interview at least two or three of them. 32
  • 34. What happens next?  Work with your REALTOR® to find a neighborhood and home that’s right for you  Once you’ve found the home, make an offer to the seller, who will accept, counter or reject it  When the price is settled, you may want to consider ordering a home inspection  Your lender will order an appraisal to assess the home's market value  Get homeowner’s insurance  Close your mortgage and purchase transactions and become a homeowner! Please note: This is a high level overview of what happens during the homebuying process. Your home mortgage consultant will work with you each step of the way and provide a step-by-step checklist when you begin the home financing process. 33
  • 35. How can Wells Fargo help? As a fair and responsible lending leader, Wells Fargo is ready to help you find financing that serves your immediate and long-term home financing needs. We want to see you choose a mortgage that will help keep you comfortably in your home for years to come. Wells Fargo Home Mortgage consultants are trained to pay attention to your goals, help you understand your options, and clearly explain how different loan programs work. So you can make informed decisions. Learn more about buying a home. Visit our My FirstHomeSM learning experience today! wellsfargo.com/myfirsthome 34
  • 36. Thank you for attending We look forward to helping you achieve your homeownership goals. Information is accurate as of date of printing and is subject to change without notice. Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. © 2012 Wells Fargo Bank, N.A. All rights reserved. NMLSR ID 399801. #102824 REV 6/12 35

Notas del editor

  1. Read the information on the slide.
  2. Read content on slide.Loan amount is easy to understand. But let's take a closer look at those other four factors.
  3. Read content on slide.Are there any questions?
  4. Read content on slide.Remember that interest rates only tell part of the story. The total cost of a mortgage includes the interest rate PLUS discount points, the origination charges and third party fees. Many of these fees are included in the annual percentage rate (APR), which is typically higher than the interest rate. The APR enables you to compare mortgages of the same dollar amount by considering their total annual cost.
  5. Read content on slide.Are there any questions?
  6. You will be responsible for some costs at the time of your closing.Read content on slide.
  7. Read slide contents.
  8. Anyone want to take a stab at this? Myth or truth?
  9. Read slide contents.Any questions before we go on?
  10. Read slide contents.
  11. Read slide content.Ask if there are questions.
  12. Read slide content.Let's talk a little more about your credit report and credit score.
  13. Read content on slide.
  14. Read content on slide.
  15. Anyone want to take a stab at this? Myth or truth?
  16. Read slide content.Questions?
  17. Read slide content.Clarify by saying:There are two main categories of loans: Conventional andGovernment. Fixed-rate and adjustable-rate mortgage options are available in both categories. Conventional loans may be conforming or nonconforming.Conforming loans have loan amounts and underwriting guidelines that follow a certain set of standards. Nonconforming loans have higher "jumbo" loan amounts or underwriting guidelines that follow a different set of standards. You’ll need to evaluate the features and benefits of each loan type — and other considerations — to help you make informed decisions.
  18. This chart compares the features of different loan types.Your home mortgage consultant will listen to your needs and help you understand your options, so you can make informed home financing decisions.
  19. Our renovation financing options and specialized renovation lending team can help you finance a home, plus wanted or needed improvements — all with one loan.
  20. Anyone want to take a stab at this? Myth or truth?
  21. Read slide contents.As a reminder, you will need to pay mortgage insurance when making less than a 20% down payment.Any questions before we go on?
  22. Read content on slide.
  23. I'll be happy to help you look into getting a PriorityBuyer preapproval before you begin house hunting.
  24. Read slide contents.Then add:In addition to experience, the REALTOR you chooseshould be trustworthy and easy to talk to.
  25. After you’ve put together your homebuying team and determined the your price range, it’s time to start house hunting.Read steps on the slide.This is a high-level look at the homebuying process. I'll be happy to provide more detailed information. Just let me know and I'll make sure you get it.
  26. Knowing what to expect when getting a home loan can make finding and financing your first home an exciting and rewarding experience. Read contents of slide.