Align advantage

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Buying a home may be a great option and a good long-term investment, but only if you’re ready for the financial commitment and responsibility of home ownership. Buying a house is the largest financial investment you will probably make, so you want to make sure you’ve done your homework and are prepared to take that next step.

Buying overview- Know when you are ready, one step at a time makes it manageable. 

Now that you are looking to buy, let’s see what is needed. Get started- do your homework

What can I afford?

Where do I want to live?

What is my need/want list?

What is needed to get started?

How much for down payment?

How does my credit score look?

Speak with an LO to see if you can qualify

What type of loan?

What is a monthly payment including escrow?

What is my down payment?

What forms are needed?

Confirm my budget

Find a lender

Collect your preapproval

FIND THE HOME OF YOUR DREAMS! 

Myth                                                                            Fact

Lenders require 20% down payment                   Down payment can be as low as 3% down

Credit must be PERFECT                                          Your score of 640+ is all that is needed

Max Debt to income of 40%                                   Debt to income can be as high as 50%

Down payment vs Closing Cost

The down payment is the initial amount that you'll pay for a property. It's typically a percentage of the home's purchase price. While it's a myth that buyers need a 20% down payment to buy a home, most mortgages require some upfront investment. That could be as little as 3% of the purchase price.

Closing costs refer to a variety of fees and payments that are associated with processing and finalizing your home loan. Fees include things like Title, processing, an appraisal, mortgage insurance, property taxes, and homeowner's insurance.

Both the down payment and closing costs are due at your home loan closing and can be some of the biggest hurdles homebuyers face. Fortunately, there's help.

Check out our NO-FEE, online homebuyer education program www.fanniemae.com/education (http://www.fanniemae.com/education) or http://creditsmart.Freddiemac.com/paths/homebuyer- (http://creditsmart.freddiemac.com/paths/homebuyer-) u . This FREE first time homeowner educational course provides convenient, easy-to-understand, no-cost tutorials that break down the homebuying process.

This course has seven course modules that guide you through the steps of homeownership. Details below

• This course is FREE OF CHARGE

• 3-4 hours to complete all 7 learning modules. 

• Accessible from your desktop, tablet, or mobile device. 

• Tracks your progress so you can pause and resume anytime, anywhere. 

• Provides a 15-question end of course quiz which you can take as many times as needed to pass. 

• Return to your course anytime to use the tools and information as a resource, as often as you would like.

1 Knowing when your ready-Learn about all the things to consider when it comes to the decision to rent or buy

2 Saving for Homeownership- Discover planning tips and tools to get yourself ready to purchase a home

3 Understanding the mortgage loan process- Learn how to find a lender, choose the right product, learn key mortgage terms

4 Shopping for a home with a real estate agent- They assist in considering different housing options, you will learn the ins and outs of shopping for a home

5 Making an offer on the home- Understand the steps to take when putting in an offer on a home

6 Getting ready to close on your loan- Know what is involved in finalizing your loan and preparing for closing

7 Welcome to homeownership- Learn valuable tips about responsibilities such as paying the mortgage, planning for expenses, and maintaining the value of your new home

***Free appraisal fee (up to $600) credited at closing as well as your UW fee waived if 

you complete this course. Show the certificate to Align lending and this will be applied.