LENDING GUIDE provided by: Joe Pochron

Sr. Loan Officer NMLS #282897 Cell: 512.748.4023 www.JoePochron.SupremeLending.com [email protected] 3420 Executive Center Dr Suite 300 | Austin, TX 78731

McClellan Texas Region

Supreme Lending Offers a Variety of Loan Programs to Meet your Needs and Situation Loan Types: Traditional:

• Conventional Loans • Jumbo Loans • FNMA HomePath®

Government:

• FHA Loans • VA Loans • USDA Rural Loans • Streamline 203K

Property Type:

• Single Family Detached • Rural Properties • Condos • Townhomes • 1-4 Mulit-Family

First Time Home Buyer Programs: • TDHCA Bond Programs • TSAHC Bond Programs • SETH • City of Austin

Occupancy Type:

• Primary Residence • Second Home • Investment

Amortization Types:

• Fixed Rate 10,15, 20, 30 Year • Adjustable Rate

Loan Purpose:

• Purchase • Rate Term Refinance • Cash-Out Refinance

Why Call Supreme? Recognized Industry Leader: • Proven ability to underwrite, close and fund loans. • Competitive interest rates and low closing costs. • Wide variety of loan products.

Supreme Culture: • Recognized for excellence in customer service. • Philosophy of building customers for life. • Timely, informed communication with clients throughout the loan process. • Dedication to helping customers achieve dreams of home ownership. • Commitment to excellence and integrity.

Technology Advantage: • Advanced, cutting edge technology to close loans quickly.

Austin Edge: • Local in-house underwriting, processing and closing teams.

The Loan Process 1

Loan Application Borrower can apply on-line or meet with a Loan Officer face to face, or communicate through email, phone or fax. Customize loan products to meet individual needs. Maintain communication throughout the loan process to closing

Loan Set Up 1. Order residential appraisal. 2. Send required disclosures to client. 3. Send verification to applicable entities.

Loan Processing The processor is your contact during all processing and compiling of information for loan submission. Email all information for loan processing to your processor.

Underwriting Evaluation of credit and property in determining adherence to Supreme Lending guidelines.

Closing 1. Supreme Lending sends prepared documents to the title company. 2. Supreme Lending prepares Closing Disclosure, then provides final closing figures. 3. Loan Officer will send prepared Closing Disclosure for borrower signature 3 days prior to closing.

Post Closing Please feel free to call us for any assistance you may need after closing. Thank you for the opportunity to serve your mortgage needs.

Documents Needed for All Loan Applications This is a two year history of employment, residence, assets and liabilities. All Borrowers: 1. Copies of W-2’s and tax returns for last two years. 2. Copies of paycheck stubs for last 30 days (most current). 3. Copies of checking and saving account statements for last two months (all numbered pages). 4. Copies of quarterly or semi-annual statements for checking, savings, IRAs, CDs, money market funds, stock, 401K, profit sharing etc. 5. Copy of Sales Contract (when available). 6. Employment history last two years, with company name, phone number, address (explanation of any gaps in employment). 7. Residency history last two years, with name, phone number, address, and account number of landlord or a mortgage statement. 8. Rental property owned; copies of leases plus mortgage payment statement, property tax receipt, homeowner’s insurance. 9. Canceled earnest money check (when it clears) or corresponding bank statement, if applicable. 10. Refinance copy of Note, Settlement Statement or Closing Disclosure, survey and current mortgage payment statement. 11. Any assets used for down payment, closing cost, and cash reserves must be documented by a paper trail. 12. If paid off mortgage in the last year, need copies of Settlement Statement or Closing Disclosure and/or release of lien. 13. If own 25% or more of a business, need company tax returns for last two years. 14. Copy of social security card.

Documents Required: 1. Relocation Agreement if move is financed by employer, i.e. buyout agreement plus documentation outlining company paid

closing costs benefits. 2. Previous bankruptcy need copies of petition for bankruptcy and discharge, including supporting schedule. 3. Divorce Decree if applicable. 4. Documentation supporting monies received from social security/retirement trust income, i.e. copies of direct deposit bank statements, awards letter, evidence income will continue.

Documents Needed for FHA/VA Loans: 1. FHA: copy of social security card for each applicant and co-applicant. 2. VA: original certificate of eligibility and copy of DD214 discharge paper. 3. VA: name and address of nearest living relative.

A Few Reminders of “DOs and DON’Ts Before You Close Your Loan If you are uncertain on what to do, please remember that you can call our office for guidance! DO: • Do provide copies of all requested documentation in a timely manner. • Do arrange for a homeowner’s insurance coverage binder on your home effective on the date of your closing. • Do keep your file current with the most recent copies of your pay stubs and bank statements. • Do continue to make all payments on credit cards, loans and rental or mortgage accounts as agreed. • Do consider the merits of having home inspections conducted as part of your purchase contract. • Do obtain a legible and fully executed copy (signed by all parties) of your purchase contract. • Do make a copy of your escrow deposit check provided with your contract offer and provide evidence that it has been cashed/deposited by the escrow/closing agent. • Do arrange for a homeowner’s insurance coverage binder on your home effective on the date of your closing. DON’T: • Don’t apply or take out new credit cards, auto or personal loans during the course of your loan process. • Don’t make any large unverifiable and un-documentable cash deposits or withdrawals to your checking or savings accounts. • Don’t allow your deposit accounts to drop below the required funds for closing provided to you by your loan officer. • Don’t quit or change employment. • Don’t take any cash advances on credit cards to pay for your escrow deposit. • Don’t make a “Contract Purchase Offer” for an amount higher than your pre-approved amount without first discussing the details with your Loan Officer.

Mortgage Dictionary Adjustable-Rate Mortgage (ARM)

Loan-to-Value Ratio (LTV)

Amortization

Margin

Mortgage in which the rate of interest is adjusted based on a standard rate index. Most ARM’s have a cap on how much the rate may increase. The process through which the mortgage debt is altered, usually declining, as payments are made to the lender. “Negative-amortization” occurs when monthly payments are too small to cover either the principal or interest reductions.

Annual Percentage Rate (APR)

The rate of interest to be paid on a loan projected life; sometimes referred to as the “true” rate of interest.

Appraisal

A professional evaluation of the value of a home or other piece of property. It is often required by the lender.

Balloon Mortgage

A real estate loan in which some portion of the debt will remain unpaid at the end of the term of the loan. A balloon will usually result in a single large payment due when the loan ends.

Cap

A limit on how much a mortgage interest rate may increase or decrease for an adjustable rate mortgage.

Conventional Mortgage

A mortgage loan with terms and conditions that meet funding criteria of Fannie Mae and Freddie Mac. Rates can be fixed or adjustable. Also known as a conforming loan.

Debt-to-Income Ratio

A ratio used by lending institutions to determine whether a person is qualified for a mortgage. Debt-to-income is the total amount of debt, including credit cards and other loans, divided by the total gross monthly income.

The amount of the loan divided by the purchase price of the house. If a refinance, the loan is divided by appraised value. A set number of percentage points a lender adds to the index to determine the interest rate for an ARM.

Mortgage Insurance (MI)

Insurance designed to cover the lender should the borrower default on the loan. Depending on the loan to value, this may be required by the lender.

Paper Trail

Copies of all paperwork to cover the lender should the borrower default on the loan.

PITI

PITI stands for principal, interest, taxes, and insurance. These are the four mortgage categories in which money is held in escrow.

Points

An interest fee charged by the lender. One point is equal to one percent of the mortgage. The use of points allows the lender to raise its yield above the apparent interest rate.

Prepayment Penalty

A fee imposed on a borrower who pays off a mortgage before it is due.

Prequalification

A process by which a potential homebuyer qualifies for a home mortgage before making an offer on a house. A lending institution agrees to make a loan in a specified amount to the person it has pre-qualified.

Principal

The amount of the loan.

Second Mortgage

Default

Failure to pay the mortgage payments over a specified period of time.

An additional mortgage on a property. It often carries a shorter term and a higher interest rate than the original mortgage.

Discount Points

Title Company

A percentage of the mortgage paid to the lender to lower the interest rate on a loan. One point equals one percent of the mortgage.

A company that searches for titles and insurance claims. Your loan will close at a title company.

Equity

Truth in Lending Act

The difference between the market value of a house and the amount still owed on the mortgage.

A federal law that requires lenders to reveal all the terms of the mortgage.

Escrow

A VA loan is a lower cost mortgage loan guaranteed by the US Department of Veterans Affairs (VA). It is designed to provide long-term financing to eligible American veterans or their surviving spouses (provided they do not remarry).

Money and documents deposited in a trust account to be held by one party for another. Often used by brokers to hold deposit money prior to closing. Also used by lenders to hold money for taxes and insurance on a home.

FHA Loan

A loan guaranteed by the Federal Housing Administration. FHA issues specific guidelines for mortgages.

VA

Contact Us Today

Call Today for Mortgage Information

Joe Pochron

Sr. Loan Officer NMLS #282897 Cell: 512.748.4023 www.JoePochron.SupremeLending.com [email protected]

McClellan Texas Region

3420 Executive Center Dr Suite 300 | Austin, TX 78731

Joe Pochron Senior Loan Officer Joe Pochron has worked in the mortgage industry since 1996 and has been a top producer since 2009. He has a thorough knowledge of all mortgage products, including FHA, VA, USDA, and Conventional loans and specializes in both home purchases and home refinancing. Joe’s greatest professional satisfaction comes from helping his clients realize their dream of home ownership. Moreover, a problem solver by nature, Joe helps find solutions for those who have problems with credit and/or level of income and fear they will never be able to own a home. He says, “It may take as long as 6-12 months, but with commitment on their part clients can take their dream to the reality of home ownership.” Of paramount importance to Joe is building lasting relationships with his clients. He accomplishes this goal by staying on top of communication throughout the entire loan process with both real estate agents and clients by being readily available—answering calls, promptly returning messages, and responding to emails. Joe commits to providing his clients with courteous, dependable, and trustworthy mortgage service. He has, as a result, a history of repeat business and referrals. When he is not in the office, Joe’s favorite activity is spending time with his adorable daughters, Ana, who is five, and Elsa, who is one. His wife, a native of Spain, is the “icing on Joe’s cake.” The family travels to Spain annually. Joe also enjoys mountain biking and cooking on his Big Green Egg.

Everett Financial, Inc. D/B/A Supreme Lending (NMLS ID #2129) at 14801 Quorum Dr., #300, Dallas, TX 75254. 877-350-5225. Copyright © 2016. All rights reserved. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates, and programs are subject to change without prior notice. All products are subject to credit and property approval. Not all products are available in all states. Other restrictions and limitations may apply. Supreme Lending is not affiliated with any government agency. Supreme Lending is required to disclose the following license information: Arizona Mortgage Bankers License #BK 0925918, Arizona Principal Office: 25030 S 190th Street, Queen Creek, AZ 85142; Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act-License 4130655; Colorado Mortgage Company Registration - Regulated by the Division of Real Estate; Georgia Mortgage Lender License 22114 – Georgia Residential Mortgage Licensee; Illinois Residential Mortgage License - Other Trade Name #1 MB.6760323 – Illinois Residential Mortgage Licensee; Kansas Licensed Mortgage Company, License # MC.0001578; Mississippi Mortgage Lender License 2129 – Licensed by the Mississippi Department of Banking and Consumer Finance; NV Division of Mortgage Lending Mortgage Banker #4062; New Hampshire Mortgage Banker License 18191-MB – Licensed by the New Hampshire Banking Department; Licensed by the N.J. Department of Banking and Insurance – Residential Mortgage Lender License; Oregon Mortgage Lending License ML-4265; Pennsylvania – Licensed Mortgage Banker by the PA Department of Banking # 45048; Rhode Island Licensed Lender 20152998LL; Texas-SML Mortgage Banker Registration – Residential Mortgage Loan Originator. The corporate office is licensed and examined by the Office of the Consumer Credit Commissioner of the State of Texas, Regulated Lender License #43044; VA: NMLS ID# 2129 (www.nmlsconsumeraccess.org); Washington Consumer Loan Company License CL-2129. For all other licenses, visit http://www.nmlsconsumeraccess.org/.