Your Home Buying GuideA Complete Introduction to Home Financing

How We Help ....................................................................... 1

Welcome to Your New Loan ..............................................2

The Home Buying Process: Brief Outline .........................3

Who You’ll Be Working With ............................................. 4

The Pre-Approval Process ................................................ 6

Advance Approval® ............................................................7

Finding the Right Loan for You ......................................... 8

The Home Buying Process:

From Contract to Close ..................................................... 9

Seven Tips for a Smooth Closing ....................................13

Getting Started ................................................................. 14

Definition of Common Financing Terms ........................15

Table of Contents

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It’s not just a loan and a place to live. It’s your finances and your life. We bring it all together.

How We Help

Smart Advice Easy Process Super Speed

• Advisor studies your profile and goals

• Provides plan and loans to meet goals

• Free ongoing reviews as goals evolve

• Complete Home On Time® App in minutes

• Run loan start to end from any device

• Loan Advisor can co-pilot with you

• Experienced, responsive, caring Advisors

• Advance Approval® secures loan up front

• Home purchase loans guaranteed on time

Welcome to Your New Loan

Congratulations and welcome to the home buying process!

You’ve just taken a key step toward purchasing your dream

home – selecting the lender who is right for you. Buying

a home is an important financial investment and one that

requires the support and knowledge of true professionals

who are on your side.

I’m here to make it easy for you. It’s my responsibility to keep

you informed throughout the loan process and to help ensure

you’re comfortable at each step. My philosophy is to provide

an informative and educational approach to the home

buying process and to leave you feeling great about our

time and partnership.

The following information is designed to guide you through

the home buying process, let you know what to expect at

each step and preemptively answer any questions you might

have along the way. I hope you find it helpful and refer to it

often over the next several weeks.

I look forward to working with you and appreciate the

opportunity to help make your dream of homeownership

come true!

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Scott YoungSenior Loan AdvisorRPM MORTGAGE

1313 South Clarkson St., Unit 2

Denver, CO. 80210

303.823.0567 mobile

720.746.2844 fax

NMLS #294755

scott@scottyoungsite.com

www.scottyoungsite.com

The Home Buying Process | Brief Outline

6. Submitting Your LoanPrior to submitting your loan, I will review your

file for completeness, discuss your interest rate

options with you, order your home appraisal

and send you initial disclosure forms to sign.

7. Receiving a Loan ApprovalI will contact you and collect any additional

documents requested prior to closing and

your real estate agent will consult with you

about your contingency removal.

8. Signing Loan DocumentsThe title and escrow company will set up your

appointment and you will sign your final loan

documents.

9. Funding Your Loan The signed loan documents will be sent

promptly to one of our funders who will clear

your loan for funding.

10. Becoming a Homeowner After funding, the title company will record

the new lien and your loan will close. Congrats!

You’ve completed the journey to buying your

dream home.

1. Deciding to Buy Start by researching your options and making sure

your finances and credit are in order. It is best to

consult with a real estate agent before beginning

your home search.

2. Discussing Your Options You and I will meet to discuss your financial goals

and determine what loan program is best for you.

Then, I’ll collect documents from you that are

necessary to begin the lending process.

3. Getting Pre-ApprovedAfter reviewing and analyzing your documents,

I will issue your formal pre-approval letter so you

can start looking at homes.

4. Starting Your Home SearchWith your pre-approval letter in hand, you begin

touring open houses with your real estate agent

and making offers on homes you’d like to purchase.

5. Finding a Property Once the seller accepts your offer, your real estate

agent and I will review the terms of your contract,

including your contingency and closing date deadlines,

and instruct you how to deposit your earnest money

check to the title and escrow company.

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Who You’ll Be Working With

A Loan Advisor is a knowledgeable and experienced

mortgage professional who assists you with your

financial needs. Their mission is to carefully guide you

through the entire home loan process, so you feel

confident as you make choices about the many options

available. As your Loan Advisor, I will serve as your

primary point of contact for your financing questions

and will keep you informed throughout all stages of

your loan.

I will meet with you and collect a list of documents

necessary for a formal underwriting analysis and

explain the different loan options available that best suit

your financial goals. After reviewing and analyzing your

income, assets and credit history, I will pre-approve you

for a mortgage loan.

With your pre-approval, you will be able to make offers

on homes you want to purchase. Once your offer is

accepted, I’ll walk with you through the process in

detail from contract to closing to ensure you meet your

deadlines on time and stress-free.

Your real estate agent knows the current housing

market like no other. He/she will guide you in your

home search, take you to view potential properties,

negotiate issues throughout the process and

eventually help you make an offer on your

dream home.

When making offers, your real estate agent will write

up the necessary documents and terms including

potential close of escrow date, loan contingency

periods and requested closing cost credits or

inspections. You can rely on their expertise in the

industry to help make the process run smoothly.

After your offer is accepted, your real estate agent

and the seller’s listing agent will work together to

finalize the agreed-upon terms of your contract. Once

all the paperwork is signed and you have officially

closed on your purchase, it will be time to move into

your new home.

Loan Advisor Real Estate Agent

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The lender will require an appraisal or opinion of the

value for the home you are purchasing. A certified

Appraiser is someone who will complete an appraisal

report and submit it to the lender as part of their

underwriting analysis for your loan. The Appraiser

will discuss with your real estate agent and set an

appointment to inspect the property. After viewing

the property, they will use their expertise and

experience to compile together the appraisal report.

The appraisal will contain an analysis of comparable

sales, market trends and an explanation of formulas

used to come up with a fair and unbiased opinion for

the value of the home based on its square footage,

bed/bath count and location.

Title and Escrow Officers are sometimes thought of

as one and the same, but their roles differ slightly. The

Title Officer investigates any issues related to the title

of the property you are purchasing. The documents

the Title Officer provides include information about

existing liens on the property, current property tax

information and property restrictions, if any.

They will order a preliminary title report and issue two

title insurance policies – one for you as the homeowner

and one for the lender. These title policies will protect

you and the lender against any title issues that arise

after closing.

The Escrow Officer will handle all funds from the

lender, you and the seller, and disburse them to the

appropriate parties at closing. They will prepare your

final loan documents for you to sign and make sure

they are accurate and executed properly. In addition,

once your loan closes, the Escrow Officer ensures all

documents are legally recorded and list you as the

new homeowner.

Appraiser Escrow & Title Officers

Who You’ll Be Working With

The Pre-Approval Process

After you’ve made the decision to buy, we will meet and review

your financial documents and questions to get the pre-approval

process started. We will discuss what type of loan option best

suits your needs, what your estimated mortgage payment will be

and your maximum qualification amount for a home loan.

There are several documents needed to start the process. I will

provide a list of all documents that you will gather and then I’ll

analyze your debt-to-income ratio, credit history and financial

assets to determine your maximum pre-approval amount. Our

pre-approvals serve as a complete pre-underwrite of your loan.

You can feel confident and satisfied when you make offers with

your pre-approval letter in hand, assured that you are making a

wise decision to work with me and RPM.

Getting pre-approved is

an important part of the

mortgage application

process. It allows you to

place offers on homes and

helps you understand your

qualification limits for what

you can afford.

This is not a guarantee to lend. Pre-approval is given based on comprehensive review of your loan application, credit report and other documentation, and is subject to a satisfactory appraisal and acceptable preliminary title report. Information provided in receiving a pre-approval needs to be correct and accurate as of the date of loan closing and additional information and documentation reasonably requested must be provided in a timely fashion. Maximum loan amounts and other restrictions apply.

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Advance Approval® | More than Pre-Approved. Approved.

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If you’re looking in a competitive housing market and need a loan at a faster pace, Advance Approval® may be the

solution. By sending your complete loan file to an RPM underwriter in advance, you’re able to skip the pre-approval

process and strengthen your offers on homes you’d like to buy. Here’s how it works:

Advance Approval® Process

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vs.

Deciding to Buy

Funding and Close of Escrow

Clear to Close and Signing

Loan Conditions and Appraisal

Making Offers and Acceptance

Advance Approval®

Average Closing Timeline

Average Closing Timeline

Deciding to Buy

Average Purchase Process

We review your buyer’s assets and income and analyze their debt for a full underwriting approval, replacing a pre-approval

They’ll be able to compete against all-cash offers and shorten their contingency timelines

With their loan already underwritten, they’ll have fewer conditions and be able to close sooner

Funding and Close of Escrow

Clear to Close and Signing

Loan Conditions and Appraisal

Loan Approval

Loan Submission

Making Offers and Acceptance

Pre-Approval

days30

Finding the Right Loan for You

Knowing what type of loan is right for you is an important part of getting pre-approved and purchasing a home.

As we work toward getting your pre-approval finalized, we will discuss your mortgage in more detail and I will

review your financial documents to find the best loan that not only matches your needs but meets your budget.

While there are many different loan programs available, here is an overview of the most common loan types for

first time buyers. Ask me about jumbo, VA or USDA Loans.

Conventional • These are standard loans that are not backed or

insured by a government entity. They follow the

basic qualification guidelines set by Fannie Mae

and Freddie Mac. These loans are typically fixed

rate mortgages.

• Down payments can be as low as 3% on loan

amounts up to $424,100 but a minimum 5%

down payment is required for loan amounts that

exceed $424,100.

• Gifts are allowed depending on your down

payment size.

• If down payment is less than 20%, mortgage

insurance is required to insure the lender in case

of default. There are various ways you can pay

for mortgage insurance – with your mortgage

payment, as a single lump sum payment, or

by financing it into your loan. If your loan will

require mortgage insurance, we will go over

this in more detail.

FHA • These are government-backed loans that are

fixed rate mortgages.

• Down payments can be as low as 3.5% on loan

amounts up to $636,150*. Your entire down

payment can be gifted.

• This type of loan offers flexible credit requirements

for those with FICO scores starting at 580.

• FHA loans are often easier to qualify for than

standard conventional loans due to their

affordability.

• Interest rates tend to be a little lower for FHA loans.

*Loan limits vary by county. Ask me about the county limits in your area.

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Making an OfferAfter we sit down to discuss your financial goals, I

will analyze your documents and pre-approve you to

purchase a home. I will then issue you a formal pre-

approval letter to submit with your offer(s) to show

sellers and listing agents that you are a serious buyer.

When it comes to deciding how much to offer for a

home, your real estate agent will be able to advise

you on what it may sell for by analyzing comparable

market trends and pending sales within the area.

That knowledge will allow you to decide on a fair offer

and, when paired with your pre-approval letter, will

help make your offer as competitive as possible.

Getting into Contract After a seller selects your offer, your real estate agent

will notify and congratulate you. You are now officially

in contract! The clock starts ticking at this point

and the loan process has begun. Any contingencies

written in your contract will need to be met within the

timeframe specified in your offer.

A contingency is a condition or clause for certain

items such as inspections, an appraisal and financing

approval. While your contingencies are in place,

your initial earnest money deposit is protected.

Once released, you are saying you are satisfied with

those particular conditions. It is important to have a

Loan Advisor you trust so you are able to meet these

deadlines on time.

The Home Buying Process | From Contract to Close

Making an Offer

Your Appraisal

Underwriting Your Loan

Funding Your Loan

Receiving Your Keys!

Getting into

Contract

Submitting Your Loan

Signing Loan Documents

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Submitting Your LoanAfter you receive your ratified contract, you or your real

estate agent will send a copy to me so I can submit your

complete loan file to an Underwriter for review. After your

real estate agent opens escrow, I will obtain any necessary

fees or terms from the Escrow Officer. Your Escrow Officer

will instruct you where to submit an initial earnest money

deposit to show your serious commitment as a buyer. This

deposit is a percentage set within your purchase contract

and will serve as part of your down payment contribution.

We will then discuss locking in your interest rate and

I will send over disclosure forms for you to sign. Your

disclosures will contain information regarding lender laws,

terms of your loan, and details about closing costs and

prepaid items.

After you sign the disclosures and documents are

received, I will work with a Loan Processor who will prepare

your file for submission for an Underwriter’s review.

Your AppraisalI will order your appraisal after you get into contract.

RPM has their own appraisal affiliate, Appraisal

Services, Inc. (ASI), which helps for a smooth and

timely turn around. Since I have a direct relationship

with ASI, I am able to monitor and expedite your

appraisal if needed. The appraisal is the only cost you

will have to pay for upfront.

After the Appraiser inspects your home, he/she will

work on putting together the final report as well as

calculating the appraised value. The final report is

usually sent to you and the lender within a few days

after the inspection takes place. We can review your

appraisal together and go over any questions you

have within the report. The appraisal will be sent to

the Underwriter to review along with your complete

loan file.

Making an Offer

Your Appraisal

Underwriting Your Loan

Funding Your Loan

Receiving Your Keys!

Getting into

Contract

Submitting Your Loan

Signing Loan Documents

The Home Buying Process | From Contract to Close

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Underwriting Your LoanThe Underwriter will analyze your financial documents

and overall strength and risk associated with your loan file.

In their decision, they will review your credit history,

assets, income and debt-to-income ratios. Within their

analysis, the Underwriter will make sure your total debt

ratio falls within lender and investor guidelines. After

thorough review of your loan file, the Underwriter will

approve or deny your application for a loan.

Once approved, I will send over a list of conditions

necessary to satisfy your loan approval. There will also

be some internal conditions such as verifying your tax

filing records with the IRS (known as a 4506-T form),

verification of employment information and receipt of

your completed appraisal.

Be sure to send requested conditions back to me in a

timely manner since these items will need to be sent

back to the Underwriter for a final review and sign off

of your loan.

Signing Loan DocumentsAfter the Underwriter receives your final loan

conditions and completed appraisal, they will clear

your file for closing. I will confirm the final terms of

the loan and order your loan documents which will be

ready for you to sign. Your signing appointment will

be coordinated with either the Escrow Officer

or a licensed notary.

You will need to bring any remaining funds for your

down payment contribution and closing costs to

the signing. I will let you know the final amount due

and how it should be paid (typically via wire or a

cashier’s check).

After you sign, you will have the option to complete a

final walk through of the home with your real estate

agent. After the walk through, real estate agent will

advise on releasing any remaining contingencies.

The Home Buying Process | From Contract to Close

Making an Offer

Your Appraisal

Underwriting Your Loan

Funding Your Loan

Receiving Your Keys!

Getting into

Contract

Submitting Your Loan

Signing Loan Documents

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Funding Your LoanAfter you sign, your Escrow Officer will package

your documents together. This is referred to as your

funding package and is immediately sent back to

your lender and assigned to a Funder for review.

The Funder will sign off on any remaining conditions

for the loan. Once the loan is ready to fund, the

Funder will wire the final loan figures to the Escrow

Officer who will then disburse the funds to the

appropriate parties.

Receiving Your KeysTypically your loan documents are officially filed and

recorded with the county a day after funding.

I will let you know when your loan is on record. Once

that happens, you are the official owner of your new

home and you can make arrangements with your real

estate agent to pick up your keys. Congratulations!

Making an Offer

Your Appraisal

Underwriting Your Loan

Funding Your Loan

Receiving Your Keys!

Getting into

Contract

Submitting Your Loan

Signing Loan Documents

The Home Buying Process | From Contract to Close

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Seven Tips for a Smooth Closing

We value communication, responsiveness and accuracy to ensure your closing is smooth and without surprises. To make

our partnership successful, we have a few tips and reminders to keep your loan on schedule.

Please send documentation in a timely

fashion. We anticipate the initial requested

documents will be sent within 48 hours and

additional requests may take 24-48 hours

for your response. If you need extra time,

communicating this is important.

The timeline for a smooth closing requires

prompt action. The underwriting process and

time to prepare your documents takes time.

Being proactive in the first week will help this

process proceed effectively.

Remember the down payment source

must match what you disclosed. If the source

account of your down payment changes, this will

require your loan to go back to underwriting.

State your gift funds up front. If you will be

receiving any gift funds, letting us know early

in the process allows us time to prepare proper

documentation.

Inform us of travel plans. You will need to be

present to sign your final paperwork and to send

requested documentation. It is helpful for us to

know as we get started about days you will be

unavailable. Depending on your travel, we can

make arrangements ahead of time.

Be mindful of large deposits. All large

non-payroll deposits must be documented.

Depending on the type, this process could be

lengthy and require re-underwriting. If possible,

please put off large deposits until after your

transaction is complete.

Steer clear of credit increases or inquiries.

We do a soft credit pull before funding to see

if there are new inquiries or an increase in

credit balances. We advise avoiding significant

increases to credit balances or opening new debt

during your purchase.

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Getting Started | Documents For Your Loan

Our Home On Time® App makes it easy to apply for your mortgage at your convenience, from any device, at

any time. Now that you’re well informed about the home financing process, simply click Get Started on my

website to begin your application for pre-approval.

A list of commonly requested items needed for your loan are outlined for your reference below. Once you

complete the application, you’ll be able to upload your documents online. As we work toward getting your loan

approved, I’ll keep you informed and updated to ensure we get you Home On Time®, in no time.

Last Two Years W-2s

Last Two Years Federal Tax Returns filed

with IRS (all schedules, please)

Most Recent Thirty Days Current Pay Stubs

Two Months Most Current Bank Statements

for All Accounts (all pages)

Investment Accounts/401K and Retirement

Statements (quarterly or past 2 months)

Homeowners Insurance Agent Name and

Number or Insurance Quote

Proof of Taxes/Insurance/HOA and

Current Mortgage Statement for All

Properties Owned

If Applicable

Copy of Permanent Resident Alien Card(s)/Visa

Divorce Decree

Child Support Order

Bankruptcy Papers and Discharge Notice

Rental Agreements for All Properties Owned

Copy of Driver’s License

Schedule K-1s for Last Two Years

Prior Year and Current YTD Profit and

Loss Statement

Last Two Years of Corporate Returns

Last Two Years of Partnership Returns

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Definitions of Common Financing Terms

Closing Costs: Standard costs set by your

loan amount, purchase price and any points and

fees negotiated.

DTI: Debt-to-income ratio. This is expressed into two

parts: front end DTI and back end DTI. Front end DTI is

a percentage of your proposed PITI divided by your

gross monthly income. Back end DTI is your proposed

PITI and any liabilities and debts divided by your gross

monthly income.

Earnest Money Deposit: A percentage of your down

payment given to the title company after you are in

contract to purchase a home. This assures the seller

you are committed to the purchase and serves as

leverage towards your strength as a buyer.

Equity: The difference between the value of your home

and the amount of your mortgage.

Escrow/Impound Account: A separate account

set up by the lender for your property taxes and

homeowner’s insurance. In addition to your monthly

principal and interest payment, if you setup an escrow/

impound account, then the lender will collect a portion

equal to 1/12th of your taxes and insurance each

month. The lender will pay for your taxes and insurance

on your behalf once they are due. Depending on the

loan program and down payment, an Escrow/Impound

account may be required.

LTV: Loan to Value Ratio. This is the ratio of your loan

amount divided by the appraised value of your home.

This expresses how much you are contributing into

the purchase. For example, if you purchase a home for

$500,000 and put 20% down, your loan amount is

$400,000 and your LTV is 80%.

PITI: This is the sum of the total monthly mortgage

payment including principal, interest, taxes and

insurance. This is included in the calculation for

qualifying for your loan.

Points: A cost that can be paid to a lender to lower your

interest rate. A point is equal to 1 percent of the loan

amount. Ex: 1 point on a $100,000 loan is $1,000.

Preliminary Title Report: A report prepared by

the Title Plant. This report includes details about

the current property ownership, liens and property

record information.

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Thank you for trusting in RPM Mortgage. for your mortgage financing needs.

We value your relationship as our

client for life and encourage you to

reach out to us with any financial

questions or concerns in the future.

www.rpm-mtg.com

LendUSA, LLC, DBA RPM Mortgage | 3236 Stone Valley Road West, Alamo, CA 94507 | NMLS #1938 | AZ – Mortgage Banker License #BK-0940683. CA – Licensed by the Department of Business Oversight under the CA Residential Mortgage Lending Act. CO – Mortgage Company Registration. NV – Mortgage Broker License #4589. OR – Mortgage Lending License #ML-5539. UT – Division of Real Estate. WA – Consumer Loan Company License #CL-1938. | 6299 | Equal Housing Opportunity.