GLG Mortgage Process and Loan Programs

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 W\V]caS operations such as processing, underwriting, closing, and funding. ESeO\bg]cb]PS]c`QZWS\bT]`ZWTSO\ReSb`SObg]c OQQ]`RW\UZgESab`WdSb]PcWZRZOabW\U`SZObW]\aVW^abVObS\OPZS SOQVO\RSdS`g^S`a]\`SZgW\U]\caT]`bVSW`TW\O\QW\U\SSRa bVS]^^]`bc\Wbgb]OQVWSdSbVS/[S`WQO\R`SO[ESY\]ebVOb bVS^c`QVOaS]TOV][SWaOZO`USW\dSab[S\bP]bVTW\O\QWOZZg O\RS[]bW]\OZZgO\ReSY\]ebVObP]``]eS`aVOdS[O\g ]^bW]\a=c`QZWS\baQV]]aScaPSQOcaSeSYSS^`ObSaZ]eO\R TSSab]O[W\W[c[)^`]dWRSa^SSRg^`SO^^`]dOZa)^`SaS\bO RWdS`aSO``Og]TZ]O\a]ZcbW]\ab]TWbW\RWdWRcOZ\SSRa)O\R S\ac`Sa[]]bV^`]PZS[T`SSQZ]aW\UaESTSSZbVOb]c` `SZObW]\aVW^aV]cZR\]bS\RObbVSQZ]aW\UbOPZSOaWabVSQOaS eWbV[]abZS\RS`a)PcbWbaV]cZRQ]\bW\cS]dS`bW[SbV`]cUV Tcbc`ST]ZZ]ec^QOZZaS[OWZaO\RZSbbS`aOP]cbb]^WQa W\QZcRW\U[O`YSbc^RObSaO\R`STW\O\QW\U]^^]`bc\WbWSa

THE MORTGAGE LOAN PROCESS

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The first step in the Mortgage Process is to complete a full loan application. Once your application is received, an experienced Mortgage Professional will help explain di‡erent financing options that are best suited for your goals. This beginning stages of the process does not guarantee an approval for a mortgage, however it does provide the knowledge required to set realistic expectations in respect to spending limits. Documentation Financial documents supporting the mortgage application must be submitted and verified by underwriters. Documentationcommonly requested (but not limited to) would include 30 dayspaystubs, 2 years complete tax returns, 2 years W2’s and 1099’s, photo ID’s for all applicants, current checking and savings account statements, and recent retirement/investment account statements. If you have experienced a divorce or bankruptcy, supporting documentation will be required. Home Shopping Now that the pre-approval is in place, you can begin the process of shopping for your dream home! You might consult with your realtor about your needs and prepare a list of available inventory that suits your search criteria. When the perfect home is located, Nathaniel will present your o‡er to the seller. Begin the Loan Process When all parties have agreed to the terms of the sales contract, you will meet with your loan ošcer to discuss the di‡erent financing options you may qualify for. When the type of mortgage, and

term, has been determined, you will sign the Loan Application and the Loan Estimate. This document is not 100% accurate in the early stages,

however, it does provide you with a realistic picture of your transaction.

DOCUMENTS NEEDED TO PROCESS YOUR LOAN

• Copy of drivers license • 30 days paystubs

• Most recent last two year's and/or 1099's • Most recent last two year's federal tax returns and all schedules • 60 days of bank statements. Must be all pages even if blank and have transaction and balance history on them. • Current asset statement (401k/IRA/mutual funds/ etc)

Down the road: • Homeowners insurance agent name and number • Canceled earnest money check

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 ošcer. Once your application is received your loan ošcer 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. BEGIN THE LOAN PROCESS Once all parties have agreed to the terms of the sales contract, your loan ošcer 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 o‡er if you decide to move forward. If you decide to move forward, the loan ošcer 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 ošcer 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 o‡ 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.

LOAN PROGRAMS

CONVENTIONAL

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

FHA

• 3.5% minimum down payment requirement • Max loan amount will be $! 31,760 • 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

• 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 • No county loan limits • 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 people: $& 6,850 ; 5- 8 people: $1 4,650

VA

• Minimum 600 credit score • 0% down payment requirement • Must meet VA eligibility • $ 510,400 maximum loan amount • No MI • No co-signers allowed • VA funding fee financed into loan • Disabled veterans can waive funding fee

BRIDGE LOAN

• Lender allows borrower 90 days to sell current property to receive the funds to pay lender back • Receive cash out of your existing property prior to the sale • Interest Only Second Mortgage Loan Borrower has the option for a 90 day Extension, if needed, to sell their current property

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

ADDITIONAL LOAN PROGRAMS

• Construction Loan • Jumbo Loans

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 sušcient 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.

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.

• Pay o‡ debt rather than moving it around. • 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

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. O‡ers subject to property and credit approval. Program and other restrictions may apply. All Payments areestimates and based on $1,800 in closings costs and include taxes and insurance (which can be higher or lower).

CHEAT SHEET

Foreclosure

Fannie

Freddie

FHA

VA

USDA

7 Yrs

7 yrs

3 Yrs

2 Yrs

3 Yrs

Short Sale

Fannie

Freddie 4 Yrs, Max LTV 90% 7 Yrs, Max LTV 95%

FHA

VA Follow

USDA

4 Yrs, Max 95% LTV

3 Yrs**

3 Yrs

Foreclosure Time Frame

Chapter 7 Bankruptcy

Fannie 4 Years from Discharge

Freddie 4 Years from Discharge

FHA 2 Years from Discharge

VA 2 Years from Discharge

USDA 3 Years from Discharge

Chapter 13 Bankruptcy

Fannie

Freddie

FHA

VA

USDA

1 Year of the payout must elapse & payment performance must be satisfac- tory; buyer must receive permis- sion from the court to enter into a mortgage

1 Year of the payout must elapse & payment performance must be satisfac- tory; buyer must receive permis- sion from the court to enter into a mortgage

2 Yrs from Discharge Date 4 Yrs from Dismissal

2 Yrs from Discharge Date 4 Yrs from Dismissal

3 Years from Discharge

MINIMUM PROPERTY STANDARDS

Roof Expect- ancy

Attic/ Crawl Space

Repairs Not Required • Missing handrails not a safety hazard • Damaged doors • Cracked glass • Leaking faucet • Defective floor finish/ coverings •Counter-tops

Required Inspections Access

Well/ Septic

Hazards Not Allowed • Must be free of excessive pollution, radioactive materials. • Cannot be within a tower fall zone, excessive noise hazards, properties located within a high voltage easement, low No part of the structure may be located within a high voltage line or easement voltage lines passing over the structure

Utilities Repairs Required

• All must be on and tested at the time of Inspection • Water must flow through all systems & heating/ cooling must be tested • All must be on and tested at the time of Inspection • Water must flow through all systems & heating/ cooling must be tested • All must be on and tested at the time of Inspection • Water must flow through all systems & heating/ cooling must be tested

• Evidence of continuing settlement • Excessive dampness • Leakage • Decay • Termites • Defective paint surfaces prior to 1978 • Any item that a‡ectsthe safety, soundness & habitability of the property • Pool value has to be deducted • Income producing land or buildings value must be deducted • Boarded doors • FHA guides apply • Inadequate access/egress for each bedroom • Leaking/worn roof • Structural issues • Defective paint surfaces prior to 1978 • Broken glass • Garage door must close • Exposed electrical outlets • Excessive dampness/mold • Items predicated by appraiser

• Must have

Well must be located at least 50 ft. from septic, 100 ft from drain field and 10 ft. from any property line Well must be located at least 50 ft. from septic, 100 ft from drain field and 10 ft. from any property line

adequate ventilation and be accessible. • Crawl space must have room for mainte- nance; a minimum • Must have adequate ventilation and be accessible. • Crawl space must have room for mainte- nance; a minimum of 18” is recom- mended of 18” is recom- mended • Must have adequate ventilation and be accessible. • Crawl space must have room for mainte- nance; a minimum of 18” is recom- mended

• Per appraiser recom- menda- tion only • Water test on vacant property

Subject must be accessible

Mini- mum 2 year life remain- ing

)+$

• Damaged sheet rock/ ceilings • Crawl space debris • Lack of all-weather

driveway • Missing appliances • Cosmetic repairs

Roof with 3 or more layers must be re- placed with all layers removed Min- imum 2 year life remain- ing

9$

• Termite inspection • Well water test • Any required by the appraiser

All streets must have all weather access

Cosmetic Repairs

Streets and roads must be all weather and hard surface

• Cosmetic repairs • Worn finishes or carpet • Minor plumbing leaks • Cracked window glass rock/-ceilings • Crawl space debris • Lack of all- weather driveway • Missing appliances • Cosmetic repairs • Missing handrails not a safety hazard • Damaged doors • Cracked glass • Leaking faucet • Defective floor finish/-coverings •Counter-tops • Damaged sheet

• Well water test • Any required by the appraiser

Well must be located at least 50 ft. from septic, 100 ft from drain field and 10 ft. from any property line

FHA guides apply

86'$

Must meet community standards, be adequate, be in service &219(17,21$/

Per the appraiser recom- mendation

Property must be safe, sound and free of any hazards that would a‡ect the habitability of the property

Per ap- praiser

N/A

N/A

Not required to be on however

• Active roof leaks

• Curled shingles

appraiser must note any item that appears it may not function

• Dampness • Settlement

• Structural deficiencies • Items predicated by a appraiser

Any noted deficiencies by an appraiser or underwriter that a‡ect the structural, safety or habitability of the property will be required to be cured.

HERE ARE SOME OF THE MOST USEFUL HOMEBUYER PROGRAMS THAT MAY OFFER YOU SOME BIG SAVINGS. These programs can o‡er anything from below-market mortgage rates to relaxed credit requirements to down-payment assistance.

FHA

*MHDC

Beyond Housing

Conventional 97%

USDA

VA

Downpayment Required

3.5%

3.5% 3% 3% 0% 0%

Gifts Allowed

Yes

Yes

Yes

Yes

Yes

Yes

Max. Sale Price $283,348 & $346,315

St. Louis County $ 152,000   234 

Maximum Loan Amount

$! 31,760

$510,400 $510,400

$4&"!#

Minimum Credit Score

580

580 600

620 600

620

(lower but subject to USDA approval.)

Seller Concessions

6%

3-6% 6%

3%

4% 6%

1 person: $4 5,550 2 persons: $ 52,050 3 persons: $ 58,550 4 persons: $ 65,050

Income Limits

1 person: $ 97,560 3 + persons: $ 113,800

100% VA- eligible only No monthly MI

Varies by location

$3-$15k depending on area. Classes required

4% of loan amount second mortgage & 4% gift option

Cash Assistance

0

0

0

0

Yes

Yes

Yes

No

No

No

Co-Signers Eligible

29/41*

31/4 3 *

45*

43*

31/45* 31/43*

Debt Ratio

Varies ask Loan 2I´FHU

Yes: .85%/yr w/1.75 UFMIP

Yes: .85%/yr w/1.75 UFMIP

Yes: .85%/yr w/1.75 UFMIP

With Funding Fee

1.0%/UFMIP .35 Monthly MI

Monthly PMI

100% VA- eligible only No Monthly Mortgage Ins

Can assist with downpayment and.or closing costs

Covers required down payment or can help with closing costs

No restriction on home

Allows for $0 down payment

No Income Limits

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Time to choose

FULL SERVICE MORTGAGE BANK In-house operations such as processing, underwrit- ing, 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. #1 MORTGAGE BANK IN MISSOURI FOR 3 CONSECUTIVE YEARS In 2016, we had a 5% market share, meaning we issued one out of every 20 home loans made in Missouri. USA Mortgage has also been number one in USDA loans for 6 consecutive years and MHDC Lender of the Year since 2010. $1 BILLION LENDER USA Mortgage has had over $1 billion in loan volume for the last 8 years. In 2016, we closed over 6,547 loans across Missouri. ONE OF ST. LOUIS’ TOP WORKPLACES Every year since it’s inception in 2001, the St. Louis Business Journal™ has named USA Mortgage among the top choices for a residential lender in the St. Louis metropolitan area. We’ve also been awarded with that publication’s “Best Places to Work” three years in a row, and this year we were awarded the St. Louis Post-Dispatch Top Work- places designation. COMMUNITY OUTREACH USA Mortgage believes in giving back to the community. We work with Habitat for Humanity, REALTOR® Housing Assistance Fund, Veterans Association, Better Family Life and many, many more. PROFESSIONAL MARKETING TEAM USA Mortgage has a growing Marketing depart- ment dedicated to helping you succeed through digital and direct marketing.

LOAN PROGRAMS

USDA

FHA

Conventional

VA

Jumbo

MHDC

Beyond

Housing

Better Family Life

Bridge Loan

Reverse

203K

Construction

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