25 © 2017 New Home Star. All Rights Reserved. | DTI DEBT TO INCOME ASSETS HOW MUCH MONEY YOU HAVE OR CAN PUT DOWN CREDIT WHAT BANKS LOOK FOR UNDERSTANDING THE MORTGAGE PROCESS HOW MUCH MONEY ARE YOU PUTTING DOWN? MONEY IN THE BANK (LIQUID ASSETS) Checking/ Savings Stocks/Bonds (when sold) 401K/ IRA Mutual Funds Gift Funds LOANS (VARY BY PROGRAM) VA Loan: Could be 0% FHA Loan: Could be 3.5% Conventional Loan: Could be 5% If multiple people are on a loan, they will take the middle score from the three credit bureaus from the lowest borrower. They will take the 720 score. MONEY YOU OWE MONTHLY MINIMUM DEBT MONEY YOU MAKE PRE-TAX INCOME Mortgage Bank loans Car payments Student loans Child support/alimony Credit cards Cell phone Car insurance Groceries Utilities Insurance MONEY OWED + MORTGAGE PAYMENT PRE TAX INCOME RATIO BANKS USE Include: Do NOT Include: YOUR MONTHLY MINIMUM PAYMENTS • Banks will take the middle score of the three • All borrowers are considered • Bank uses the middle score of lowest borrower different credit bureaus rate you. 3 3 Equifax: 780 Transunion: 790 Experian: 760 ASSETS CREDIT DEBT-TO-INCOME RATIO Equifax: 800 Transunion: 720 Experian: 680 BORROWER 1 BORROWER 1 BORROWER 2 BORROWER 2 Jane or John Doe | 555-555-5555 | jdoe@xyzhomes.com 123 Fake Street, Chicago, IL 60611 | www.xyzhomes.com 555-555-5555 www.xyzhomes.com 123 Fake Street, Chicago, IL 60611 BUYING $250,000 $230,000 NEW v RESALE MONTHLY EXPENSES (estimated) Principal/Interest Payment* Utility Cost Maintenance Cost Property Taxes Homeowner’s Insurance HOA Dues EST. TOTAL MONTHLY COST OF OWNERSHIP* *Total monthly cost does not include mortgage insurance premium 1,513.31 1,066.48 176.00 - 208.33 41.67 20.83 981.16 278.74 143.74 191.67 41.67 20.83 $ $ $ $ $ $ $ 1,657.82 $ $ $ $ $ $ $ PURCHASE PRICE $ 250,000.00 $ 230,000.00 NEW HOME USED HOME ESTIMATED SAVINGS MONTHLY: $ ANNUALLY: $ 1,734.01 144.50 (from purchasing a new home) 1. Interest rates and payments are just an estimate. Actual rate and payment may vary based on various factors including price, downpayment, credit score, and lender. Buyer should consult with a mortgage professional to receive a good faith estimate. 2. Loan amounts and mortgage payments excludes any mortgage insurance premiums which may be associated with certain loan programs in the event that the borrower is putting less than 20% or financing using a program that requires a mortgage insurance premium. Premiums vary based on loan program and factors including but not limited to down payments and credit scores. 3. Property taxes are estimated based on purchase price. Actual tax payments are based on your local jurisdiction's property value assessment. Builder has no input or influence on that valuation or the property tax rate. 5. Maintenance Costs are based on estimated annual nationwide average costs by age of home according to ThisOldHouse.com (http://www.thisold- house.com/toh/article/0,,216991,00.html). Estimates assume an annual cost of .75% of property value for homes 10 years old and less, 1.5% annually for homes between 10 and 20 years old, and 3% annually for homes that are more than 20 years old. 6. New home utility costs estimates based on HERS testing provided to builder from independent company. Used home utility costs based o n average resale HERS rating per RESNET. Used home HERS rating compared to new home HERS rating and utility costs to establish used home utility costs based on proportional comparison as outlined by RESNET. LOWEST PRICE ≠ LOWEST COST Resale homes typically have higher utility, maintenance, and insurance costs. What this means for you is that a lower priced resale homes often costs more to own that a higher priced newhome. Before you buy used, ask us for a customized total cost of ownserhip comparison. MORTGAGE PROCESS TOTAL COST OF OWNERSHIP Infographic Infographic Purchasing a new home is a big deal and an extensive investment. Perhaps the most anxiety-ridden aspect of this affair is the mortgage process. Most of this stress stems from a lack of understanding details. This mortgage infographic is designed to quickly deliver the 411 of what banks are looking for when issuing a loan. Help lower buyer anxiety and build your credibility by utilizing this flyer! This powerful tool is designed to solve one of the most common challenges we face in sales: Each day, customers question our pricing and value based on nearby competitive resale homes. Prospects assume, based solely on sales price, that our homes are more expensive. However, when accounting for energy efficiencies, warranties, new products, and insurance, our out-of-pocket costs are typically lower. By using this resource, you can convey that message and make buyers feel like it’s okay to invest in your product. ITEM # F230 ITEM # F231 FLYERS