HMielke_Mortgage Process & Loan Programs2020

HMielke_Mortgage Process & Loan Programs2020

MORTGAGE PROCESS LOAN PROGRAMS

ABOUT US USA Mortgage is a full-service mortgage bank. We will see you through all aspects of the loan process from the time we meet to the day you sit at the closing table. We also will fund your loan with our money. To borrowers and REALTORS®, being a mortgage bank means you can expect a home financing experience free of hassles and headaches. The complete control means having inhouse operations such as processing, underwriting, closing, and funding. We want you to be our client for life...and we treat you accordingly. We strive to build lasting relationships that enable each and every person relying on us for their financing needs the opportunity to achieve the American dream. We know that the purchase of a home is a large investment - both financially and emotionally - and we know that borrowers have many options. Our clients choose us because we keep rates low and fees to a minimum; provide speedy pre-approvals; present a diverse array of loan solutions to fit individual needs; and ensure smooth, problem-free closings. We feel that our relationship should not end at the closing table, as is the case with most lenders; but it should continue over time through future follow-up calls, emails, and letters about topics including market updates and refinancing opportunities.

WOULD YOU LIKE TO PURCHASE A HOME WITH THE CONFIDENCE OF A CASH BUYER?

TBD MORTGAGE APPROVAL PROGRAM

Many buyers think they need to find a house to buy before getting the mortgage paperwork done. However, in the mortgage world 95% of what we do has nothing to do with the house. All we need to do is get an appraisal and the title work and, as long as your house appraises and the title is clean, you should be able to get a loan. The more time we have, the more beneficial it can potentially be for you. This gives us time to examine your credit, come, and assets. The first step is to fill out the application and provide a number of disclosures. Then we can submit everything to underwriting. Once this is done, you have 6 months before you would have to have a home under contract. We can start the entire process online. Once you have filled out the application we can figure out whether the paperwork needs to be e-signed or if they need to have a real signature, depending on the loan product. When we go through and sign these to-be determined documents, we’re going to pull all the tax transcripts, do the verifications of employment, and send you completely through underwriting. So when you actually get your home, we’ll just need to do some updating with bank statements. It will just be dotting the i’s, crossing the t’s, and then you only really need to sign a few pieces of paper that get disclosed to you after you get your home under contract because everything else we’ll have already knocked out in advance. So we literally can do almost your entire loan without you having a house under contract.

DOCUMENTS NEEDED LIST

Driver’s license or state issued photo ID ( all borrowers) 30 days of most recent pay stubs ( all borrowers) W-2’s - and (and/or 1099’s) ( all borrowers) Federal Tax Returns - and ( all borrowers Bank Statements – most recent 2 months ( all borrowers) 401k/Retirement accounts (most recent quarter or monthly statement) Current Lease Agreement 2018 2019 2018 2019

All accounts All pages, even blank ones Must have your full name and account # on the statement No blackouts

Landlord name and contact information

Current Mortgage Statement Social Security Income 1099’s - and Social Security Benefits Letter 2018 2019

Pension/Retirement Income (Social Security/VA/Retirement)

1099’s -

and 2018 2019

Self Employed

Year to date P&L (profit and loss, dated and signed)

Bankruptcy

Discharge letter List of Creditors Divorce Decree and/or Child Support Order

Alternate Trade Lines (copy of recent bill)(up to 3 with 12 month satisfactory payment history) (utility, cell, cable, gas, electric, water, sewer, Netflix, trash, car insurance) Veterans Documentation DD-214 Certificate of Eligibility New Employment Employment offer letter (employment date and salary info) Home Owners Insurance Quote for your subject property Please email these documents in PDF format only to the following: Herb Mielke – [email protected] or J – j @usa-mortgage.com (J will be your primary contact during the loan process)

THE HOME BUYING PROCESS

MEET WITH A REAL ESTATE PROFESSIONAL Discuss the type of home you’re looking for, including style, price, and location.

GET PRE-APPROVED You will need pay stubs, W2s, and bank statements. Knowing what you can afford is critical to a successful home shopping experience.

MAKE AN OFFER Your agent will prepare the offer based on the price and terms you choose.

SEARCH FOR HOMES The fun part! Your agent will schedule showings and help you find the perfect home.

NEGOTIATION & CONTRACT It may take a few tries to get it just right, but hang in there. You’re on your way!

UNDER CONTRACT You and seller have agreed to the price and terms. The home is effectively held for you until closing.

CLOSING This is the transfer of funds and ownership. A title company or an attorney typically acts as an independent third party to facilitate the closing.

FINAL DETAILS

Perform due diligence, order the appraisal, conduct an inspection, and review terms with the lender.

CONGRATULATIONS! YOU ARE A NEW HOME OWNER!

HOW MUCH CAN YOUR RENT PAYMENT BUY?

$600 in Rent = A House Worth $90,000 (Based on 30 Yr Fixed (360 payments of $600), 5% down, 4.5%(4.68%APR)) $800 in Rent = A House Worth $120,000 (Based on 30 Yr Fixed (360 payments of $800), 5% down, 4.5%(4.68%APR)) $1,000 in Rent = A House Worth $150,000 (Based on 30 Yr Fixed (360 payments of $1,000 ), 5% down, 4.5%(4.68%APR)) $1,200 in Rent = A House Worth $180,000 (Based on 30 Yr Fixed (360 payments of $1,200), 5% down, 4.5%(4.68%APR)) $1,400 in Rent = A House Worth $210,000 (Based on 30 Yr Fixed (360 payments $1,400), 5% down, 4.5%(4.68%APR))

The information included on this sheet is for informational purposes only and not a commitment for a loan. Information is provided to assist Real Estate Professionals only and is not an advertisement to extend consumer credits. Rates and programs are subject to change. Offers subject to property and credit approval. Program and other restrictions may apply. All ayments are estimates and based on $1,800 in closings costs and include taxes and insurance (which can be higher or lower).

MORTGAGE DOs & DONTs DOs:

• KEEP ALL RECORDS AND DOCUMENTS IN GOOD ORDER

• AVAILABILITY - Keep your financial records close at hand in case updates are requested.

• INCOME - Be aware that underwriters typically verify your income and tax documents through your employer(s), CPA, and/or IRS tax transcripts. Hold onto new paystubs as received.

• ASSETS - Continue saving account statements. Keep all numbered pages of each statement. Ex. 8 of 8.

• GIFTS - If you’re receiving any gift money from relatives, they’ll need to sign a gift letter (we’ll provide) and an account statement evidencing the source, which must be “seasoned” funds. • CURRENT RESIDENCE - If you’re renting, continue paying your rent on time and save proof of payment. If you’re selling your current residence, be prepared to show your closing disclosure. If you’ll be renting your home, you may need to show sufficient equity, a lease and receipt of the first month’s rent and security deposit. • KEEP YOUR CREDIT SHINING - Continue making payments on time. Your credit report may be refreshed, and any negative change to your report could cause you to lose your approval and your home. • UNDERSTAND THAT THINGS HAVE CHANGED - Underwriters require more documentation than in the past. Even if requests seem silly, intrusive or unnecessary, please remember that if they didn’t need it, they wouldn’t ask.

DONTs: • APPLY FOR NEW CREDIT - Changes in credit can cause delays, change the terms of your financing or even prevent closing. If you must open a new account (or even borrow against retirement funds), please consult with us first. • CHANGE JOBS DURING THE PROCESS - Probationary periods, career or even staus changes (such as from a salaried to a commisioned position, leave of absence or new bonus structure) can be subject to very strict rules. • MAKE UNDOCUMENTED DEPOSITS - Primarily large but sometimes even small deposits must be sourced unless they are identified. Make copies of checks and deposit slips. Make sure you keep all documents on any large deposit. • WAIT TO LIQUIDATE FUNDS FROM STOCK OR RETIREMENT ACCOUNT - If you need to sell investments, do it now and document the transaction. Don’t take the risk that the market could move against you leaving you short of funds to close.

LOAN PROGRAMS

CONVENTIONAL

• 5% minimum down payment requirement • Maximum loan amount of $510,400 • Seller concession are limited to 3-9% of sales price (please call for details) • PMI required over 80% LTV • Additional options are available

FHA

• 3.5% minimum down payment requirement • Max loan amount will be $331,760 • Upfront Mortgage Insurance premium financed into the loan • Condominiums must be on FHA approved list • No income limits • Seller concessions up to 6% of sales price • Gifts allowed

USDA

• Minimum 640 credit score (may be lower but subject to USDA Approval) • Property must be located in USDA approved area • No down payment required - 100% - 102% LTV financing based on appraised value • Possible financed closing costs • Reduced monthly mortgage insurance premiums • Maximum Loan amount will be $484,350 • New and existing homes eligible • Seller concessions of 6% of sales price • Condominiums may be eligible for financing • Not restricted to first time home buyers • Income for all residents cannot exceed: 1-4 Persons: $85,700; 4+ persons: $113,100

VA

• 0% down payment requirement • Minimum 600 credit score • Must meet VA eligibility

• $484,350 maximum loan amount • No MI • No co-signers allowed • VA funding fee financed into loan • Disabled veterans can waive funding fee

LOCK & SHOP

• Delivers flexibility to the homebuyers experience. • Locks up to 120 days with no upfront lock fees.

ADDITIONAL LOAN PROGRAMS

• Renovation Loans • Jumbo Loans

HOME LOAN PROCESS

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PRE-QUALIFICATION & DOCUMENTATION The first step is to complete a full loan application, which can be done online or with the assistance of your loan officer. Once your application is received your loan officer will guide and help determine which loan program best fits your needs while informing you of the needed documentation to move forward with the process.

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START SHOPPING FOR YOUR NEW HOME This is the fun part; you can work with a licensed real estate professional that will help find that house you can call home! Along the way, they will assist in making sure you are aware of any unseen or unnoticed issues to insure you are buying with confidence. Once you find the right place they will work on your behalf for the best terms and price of the sale. START SHOPPING FOR YOUR NEW HOME BEGIN THE LOAN PROCESS Once all parties have agreed to the terms of the sales contract, your loan officer will begin collecting information to provide the best program options and terms available. A Loan Estimate will be provided to detail the loan specifics such as the interest rate, monthly payment and total closing costs. The Loan Estimate shows you what loan terms the lender expects to offer if you decide to move forward. If you decide to move forward, the loan officer will ask for additional financial information for the processing of the loan.

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UNDERWRITING A Mortgage Underwriter’s job is to assess the risk of lending you, the applicant, money to purchase your home. They consider factors such as credit history, employment history and income when determining whether to approve the loan.

INSPECTION & APPRAISAL Your REALTOR® can recommend a capable home inspector for a thorough inspection of the property. The inspector will check for any structural and/or material defect, items you will want to know about before your purchase. After the inspection is complete your loan officer will place the order for your appraisal and a licensed appraiser will be randomly selected to complete the order.

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CONDITIONAL APPROVAL Once the underwriter has reviewed all the documentation provided for the buyer and it meets the minimum requirements they will issue a “conditional approval.” However, this approval will still have a few items needed to get a final approval.

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FINAL APPROVAL & CLOSING Once the additional items from the conditional approval have been obtained the underwriter signs off giving it a clear to close. The file will now move into closing. This is where we get the paperwork ready for you to sign and move the money to the title company to pay for the home.

Understanding Your Credit Score

30% Amounts Owed

Having credit accounts and owing money on them does not necessari- ly mean you are a high risk borrower. However, when a high percentage of a person’s available credit has been used, this can indicate that a person is overextended.

35% Payment History

The first thing any lender wants to know is whether you’ve paid past credit accounts on time. This is one of the most important factors in a credit score.

10% New Credit

Research shows that opening several accounts in a short period of time represents a greater risk – especially for people who don’t have a long credit history.

10% Types of Credit Used

15% Credit History

In general, a longer credit history will increase your credit scores.

Credit scores will consider your mix of credit cards, retail accounts, installments loans, finance company accounts and mortgage loans

Tips to improve your credit score. • Always pay your bills on time. • Pay down your credit card balances. • Never max out your credit cards.

• Don’t open more credit cards than you need. • Shop for loans within a focused period of time. • Regularly check your credit report.

Credit Reporting Agencies You can check your credit report annually for free from each repository below.

• Equifax 1-800-525-6285 • Experian 1-888-397-3742 • Trans Union 1-800-680-7289

YOUR MORTGAGE BANKER

MY COMMITMENT

FULL SERVICE MORTGAGE BANK In-house operations such as processing, underwriting, closing and funding means that we have total control of your mortgage transaction. With the largest portfolio of loan products available, we are likely to have the perfect loan for you. $2 BILLION LENDER USA Mortgage has had over $1 billion in loan volume for the last 10 years and over $2 billion in 2019. DAS GIVES We care about giving back to the community. DAS Gives is an employee-driven program where we strive to focus on supporting charities that are near and dear to our employee’s hearts. We care about what our employees care about.

You are most likely reading this because you have been referred to me by either a family member, friend, neighbor, co-worker, financial advisor or real estate professional. It is a great privilege to be recommended to you by those who care most about your well being. From the very beginning in 1996 until now, I have always been committed to putting my client’s needs above all other variables. In exchange, I have forged lifelong friendships with many of my clients, and as a result, I have built a successful and rewarding career. am far from perfect, my team and I will work tirelessly to meet and exceed all of your financing objectives. Thank you in advance for having faith in me and the person who referred me. I look forward to the opportunity to serve you.

100% EMPLOYEE OWNED

Herb Mielke Mortgage Banker [O] 937-550-1921 [M] 937-572-8933

ABOUT USA MORTGAGE A subsidiary of DAS Acquisition Company, LLC., USA Mortgage continues to open doors as a mortgage industry leader. At USA Mortgage, our mission is the unrelenting pursuit of perfection, and we pride ourselves on the lending excellence and the superior level of service that our status as a mortgage bank enables us to provide.

[email protected] hmielke.usa-mortgage.com 7601 Paragon Road, Suite 201 Centerville, OH 45459 NMLS: 264009

Herb Mielke Mortgage Banker [O] 937-550-1921 [M] 937-572-8933

[email protected] hmielke.usa-mortgage.com 7601 Paragon Road, Suite 201 Centerville, OH 45459 NMLS: 264009

Company NMLS: 227262. Not a commitment to lend. Additional terms and conditions apply. DAS Acquisition Company, LLC is not affiliated with or endorsed by any government entity or agency, including USDA, HUD or VA. Headquarters: 12140 Woodcrest Executive Drive, Suite 150, St. Louis, Missouri 63141, Toll Free: (888) 250-6522. For complete licensing information visit http://www.nmlsconsumeraccess.org.