introduction to vanderbilt - vmf home loan · introduction to vanderbilt benefits of owning vs....

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Introduction to Vanderbilt

Benefits of Owning vs. Renting.................................................2

8 Tips for First Time Homebuyers.............................................3

Home Loan Process Roadmap...................................................5

6 Mortgage Steps.......................................................................7

Tips on Saving for a Down Payment.........................................9

Prepare Your Credit for Home Ownership................................11

Table of Contents

Buying a home is a big step, but it doesn’t haveto be out of reach.

For more than 40 years, Vanderbilt Mortgage and Finance, Inc., has been helping families like yours achieve the dream of owning their own home. As a national housing lender, we are committed to finding the right financing solution for you.

“We are pleased to be able to help fulfill the American dream of homeownership for so many families,” said Eric Hamilton, President of Vanderbilt Mortgage and Finance, Inc. “We believe that homeownership makes lives better.”

Vanderbilt Mortgage and Finance, a Berkshire Hathaway company, works hard to tailor loans to each family’s needs. Visit VMFHomeLoan.com, for more information.

VMFHomeLoan.com

1

Introduction to Vanderbilt

Benefits of Owning vs. Renting.................................................2

8 Tips for First Time Homebuyers.............................................3

Home Loan Process Roadmap...................................................5

6 Mortgage Steps.......................................................................7

Tips on Saving for a Down Payment.........................................9

Prepare Your Credit for Home Ownership................................11

Table of Contents

Buying a home is a big step, but it doesn’t haveto be out of reach.

For more than 40 years, Vanderbilt Mortgage and Finance, Inc., has been helping families like yours achieve the dream of owning their own home. As a national housing lender, we are committed to finding the right financing solution for you.

“We are pleased to be able to help fulfill the American dream of homeownership for so many families,” said Eric Hamilton, President of Vanderbilt Mortgage and Finance, Inc. “We believe that homeownership makes lives better.”

Vanderbilt Mortgage and Finance, a Berkshire Hathaway company, works hard to tailor loans to each family’s needs. Visit VMFHomeLoan.com, for more information.

VMFHomeLoan.com

“We are so happy with our new home. Financing was a breeze. They took care of all our questionsand concerns right up front. I am truly veryhappy with my mortgage company, and would highly recommend Vanderbilt to all my family and friends. ”

- Russell, New Mexico

Benefits ofOwning vs.

Renting


Renting


Renting hile renting offers the flexibility to move and typically involves less maintenance and yardwork, owning a home has many great benefits, such as:

• Ownership— While making payments, the owner is gradually establishing more equity, eventually resulting in full ownership of the home.

• Flexibility— Whether it’s owning a pet, making renovations or painting the walls, homeowners can change aspects of their home whenever they want.

• Outdoor spaces— Gardens, grills, hammocks, a tire swing in the backyard— these are all things that may not be allowed when renting. Homeowners have more freedom to customize their outdoor living spaces to suit their family’s needs.

“Homeownership provides many benefits on both emotional and financial levels,” said Eric Hamilton, President of Vanderbilt Mortgage and Finance, Inc. “Between the high cost of rent and restrictive lease agreements, it makes a lot of sense to own your home in today’s housing climate.”

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For tips on how to financially prepare for homeownership, view the Guide to Credit, as well as other useful resources for homebuyers

at VMFHomeLoan.com.

2VMFHomeLoan.com

ADJUST YOURBUDGET

PLAN FOR ADOWN PAYMENT

STAY ON TOP OFYOUR CREDIT

CONSIDER THELOCATION ANDTYPE OF HOMEYOU WANT TO BUY

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Create a savings plan tohelp meet your down

payment goal.

Location, size, style and more can influence the cost of a home. Know the estimated

cost of the type of home you want to help better manage

your budget.

Lenders will consider your credit score and report history when

determining your mortgage eligibility. Periodicallly review your report and correct any

errors that may appear before applying for a loan.

Use an online mortgagepayment calculator to

predict your payment andunderstand your current

debt-to-income ratio.

VMFHomeLoan.com

BEFORE YOU DIVE HEAD FIRST INTO HOMEOWNERSHIP,EDUCATE YOURSELF ON HOW TO BE MORTGAGE-READY.

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Budget for an escrow payment in

addition to your monthly mortgage

payment. Escrow is collected with

your monthly payment and applied

toward your annual homeowner’s

insurance premiums and/or taxes.

Do your homework and obtain as much information online as

you can before �lling out a credit application.

KEEP CURRENT ONMONTHLY BILLS

WORK ON YOUR DEBT

TAKE ADVANTAGEOF EDUCATIONALRESOURCES

PLAN FORESCROW

Paying your bills on time canhelp increase your creditscore and provide a good

first impression with a lender.

Bring delinquent balancesup to date and reduce

revolving credit card debt bypaying more than the

monthly minimum paymenteach month.

VMFHomeLoan.com

HOME LOANS T E P S O F T H E

P R O C E S S

PRESENTED BYVANDERBILT MORTGAGE

Ensure You Can Afford A HomeCreate a Budget: Assess your monthly spending habits. Add up total monthly bills and subtract it from your monthly income. Do you have enough left over for a new payment?Assess Your Credit Score: If your credit score is lower than you would like, work toward building up your credit.Develop a Savings Plan: Saving a small amount every month for a year is a good way to save enough for a down payment on your dream home.

2Apply For A Loan

Origination: A licensed loan specialist reviews financing options and works with you to complete the credit application.You may then be issued a “conditional approval.” This means your information must be verified before a full approval offer can be issued to you.Underwriting: Credit risk is determined based on credit score, income, existing debt and down payment.

• Complete all tasks assigned in the “conditions to approval” list • Tasks Could Include: Additional proof of income, proof of savings/emergency funds, proof of ability to repay the loan• Once conditions have been satisfied, congratulations! You’re approved! Be expecting a call from a Vanderbilt representative to discuss any additional info that may be needed to move on to the next step.

processing• Select your dream home• Sign a purchase agreement with the seller• Your processor will order a home appraisal if needed and will provide you with a copy of the appraisal

Proof Of IncomeMost Recent Paystubs

Proof Of EmploymentPast 2 Year History

Proof Of ResidencyCurrent Street & Mailing Addresses

Proof Of IdentityCurrent Driver’s License, StateIssued ID orSocial Security Card

Documents typically neededto complete a home loanapplication might include:

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B

C

D

ClosingThe final step of thehome loan process!• Titling is finalized with the title company• Closing documents are signed • Closing costs are paid

Financial Self-Assessment & Preparation

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SOLD

Vanderbilt Mortgage and Finance, Inc., 500 Alcoa Trail, Maryville, TN 37804, 865-380-3000, NMLS #1561, (http://www.nmlsconsumeraccess.org/), AZ Lic. #BK-0902616, Loans made or arranged pursuant to a California Finance Lenders Law license, GA Residential Mortgage (Lic. #6911), Illinois Residential Mortgage Licensee, KS Licensed Mortgage Co. (SL.0000720), Licensed by the NH Banking Department, Mississippi Licensed Mortgage Company, MT Lic. #1561, Licensed by PA Dept. of Banking.

ALL LOAN PROGRAMS SUBJECT TO CREDIT APPROVAL.

Enjoy Your New Home! visit vmfhomeloan.com

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START

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Homecenter

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Origination & Underwriting

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Satisfy Loan Conditions

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For first-time homebuyers, the idea of getting a loan can be intimidating. Resources are available to help with your home buying journey, and your mortgage lender may be able to answer questions you have.

“We’re finding that many of our customers come into the home loan process with limited knowledge of how the process works,” said Eric Hamilton, President of Vanderbilt Mortgage and Finance. “It’s important to take the time to familiarize yourself with the details so you know what to expect.”

VMFHomeLoan.com

You Need to Kno�

1. Preparation and self-assessmentMake sure you know how much you can afford before jumping into buying a home. The first step is to calculate your debt-to-income ratio by adding up your monthly bills and subtracting it from your total income. This will help you determine whether you can afford a mortgage payment, and if so, how much. Use our onlinemortgage calculator to help compute the estimated amount.

2. The loan applicationApplication to review ahead of time and establish what information you will need to apply. The necessary documents may include proof of: income, employment for the past two years, identity, residency and your Social Security card. When you are ready, complete and submit an online loan application. You can simply do an online search for a blank 1003 credit.

8VMFHomeLoan.com

3. Origination and underwriting• ORIGINATION: The loan officer will review your financing options, offer guidance to complete the credit application and create a loan account.

• UNDERWRITING: An underwriter will review the application and determine the level of credit risk you represent based on your credit score, income, existing debt and down payment. You may be asked to provide additional information about your finances during this step.

4. Satisfying loan conditions and full loan approvalYou may receive a “conditions to approval” list from your lender that outlines the tasks you must complete before the loan can be closed. For example, the lender may ask for additional documentation to verify income, savings or other proof that you can afford to repay the loan.

5. ProcessingOnce you’ve selected your dream home, you’ll sign a purchase agreement with the seller. The purchase agreement tells the lender how much you have agreed to pay to buy the home. The lender may have the home appraised and should provide you with a copy of the appraisal.

6. ClosingIn the final step, the lender works with a title company to obtain and review a report to finalize your title. The titling company has documents that need to be signed and recorded as part of your mortgage loan file. At the closing, you will sign all documents and pay any closing costs. All paperwork will be sent to the lender to complete the process.

And now, your drea� home i o it way to being built and delivered!

8VMFHomeLoan.com

3. Origination and underwriting• ORIGINATION: The loan officer will review your financing options, offer guidance to complete the credit application and create a loan account.

• UNDERWRITING: An underwriter will review the application and determine the level of credit risk you represent based on your credit score, income, existing debt and down payment. You may be asked to provide additional information about your finances during this step.

4. Satisfying loan conditions and full loan approvalYou may receive a “conditions to approval” list from your lender that outlines the tasks you must complete before the loan can be closed. For example, the lender may ask for additional documentation to verify income, savings or other proof that you can afford to repay the loan.

5. ProcessingOnce you’ve selected your dream home, you’ll sign a purchase agreement with the seller. The purchase agreement tells the lender how much you have agreed to pay to buy the home. The lender may have the home appraised and should provide you with a copy of the appraisal.

6. ClosingIn the final step, the lender works with a title company to obtain and review a report to finalize your title. The titling company has documents that need to be signed and recorded as part of your mortgage loan file. At the closing, you will sign all documents and pay any closing costs. All paperwork will be sent to the lender to complete the process.

And now, your drea� home i o it way to being built and delivered!

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Tips on Saving fora Down PaymentTips on Saving fora Down PaymentSET A REALISTIC GOAL

The first step to buying a home is

determining an affordable down

payment amount. Researching home

prices and creating a budget can help

you narrow down which homes are in

your budget. A home loan specialist

will be able to help estimate the down

payment amount needed once you

choose the right home for your family.

USE YOUR FUTUREHOME AS INCENTIVE

Reaching your goal can be hard work,

but keep in mind that it will all be

worth it on move-in day. Posting a

photo of your dream home in a high-

traffic area like on your refrigerator

or as a screen saver on your mobile

phone so you see it multiple times a

day can help you keep your eye on

the prize and persevere.

SET UP ASAVINGS PLAN

Whether you collect change in a jar

or manually set aside a portion of

each paycheck, setting up a regular

savings plan is a good way to grow

a down payment.

EVALUATE CURRENT SPENDING

The best way to save money is to

cut unnecessary costs. Make a

prioritized list of you current

monthly spending habits and cut

back or completely eliminate

unnecessary expenses, such as

eating out or unused memberships

that require a monthly payment.

VMFHomeLoan.com

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EARN EXTRA INCOME

This is not always an option for

everyone, but working overtime or

picking up a part-time job can

provide extra money to put toward

a down payment.

RESEARCH VARIOUS FINANCE PROGRAMS FOR ASSISTANCE

The Federal Housing Administration

supports loan programs in every

state that are designed for first-time

homebuyers and those with low to

moderate-income. These programs

require some type of homebuyer

contribution, but they’re definitely

worth looking into. Information about

government down payment assistance

programs can be found on the HUD

website.

USE YOUR TAX REFUND

If you’re getting a tax refund and

considering buying a home, you may

want to use the money toward a

down payment. You can create a

down payment fund by setting up a

seperate savings account. The more

you put down, the less you will have

to borrow.

CELEBRATE YOUR ACHIEVEMENTS

The path to meeting your savings

goal can seem daunting and

impossible. Avoid getting discouraged

by breaking your ultimate goal into

several smaller goals. Each time you

meet a small goal, reward yourself!

For example, if your end goal is

$15,000, for every $2,500 you save,

treat yourself to dinner and a movie.

You’ve earned it!

VMFHomeLoan.com

Questions? Give us a call!866-701-0467

8:30 AM – 5:30 PM EST, Monday-Friday

Vanderbilt Mortgage and Finance, Inc., 500 Alcoa Trail, Maryville, TN 37804, 865-380-3000,NMLS #1561, (http://www.nmlsconsumeraccess.org/), AZ Lic. #BK-0902616, Loans made or arranged pursuant to a California Finance Lenders Law license, GA Residential Mortgage (Lic. #6911), Illinois Residential Mortgage Licensee, KS Licensed Mortgage Co. (SL.0000720), Licensed by the NH Banking Department, Mississippi Licensed Mortgage Company, MT Lic. #1561, Licensed by PA Dept. of Banking.

11VMFHomeLoan.com

A homebuyer’s credit rating plays an important role in the buyingprocess. It can affect the amount one can borrow, the interest rates and even the ability to obtain a mortgage loan in the first place.

“A consumer’s credit is one of the biggest factors that goes into the mortgage application process,” said Eric Hamilton, President of Vanderbilt Mortgage and Finance, Inc. “Before applying for a loan, it is crucial to get your credit in the best shape you possibly can.”

Here are a few tips for improving credit:

• Pay bills on timeLate or missed payments on credit cards, mortgages and other loans could result in a credit score drop. Paying on time, making additional payments when possible and paying extra toward principal will help keep a good payment history. Our Extra Principal Payment Calculator tool can help determine the savings that come with paying more.

• Minimize debt and keep it manageablePaying statement balances in full instead of letting debt accumulate can improve credit scores and possibly result in better terms from lenders. Lenders often check a borrower’s credit report to measure the

amount of debt they’re carrying against the loan amount they’ve requested. Excessive debt could cause a lender to decline the application.

• Avoid applying for unnecessary creditCredit applications can appear as inquiries on credit reports, suggesting an applicant may be taking on additional debt. Be aware of sales that offer discounts if you apply for a credit card. These could show up as inquiries and remain on your credit report for two years. Instead, use existing lines of credit to prove responsible credit management.

Questions? Give us a call!866-701-0467

8:30 AM – 5:30 PM EST, Monday-Friday

Vanderbilt Mortgage and Finance, Inc., 500 Alcoa Trail, Maryville, TN 37804, 865-380-3000,NMLS #1561, (http://www.nmlsconsumeraccess.org/), AZ Lic. #BK-0902616, Loans made or arranged pursuant to a California Finance Lenders Law license, GA Residential Mortgage (Lic. #6911), Illinois Residential Mortgage Licensee, KS Licensed Mortgage Co. (SL.0000720), Licensed by the NH Banking Department, Mississippi Licensed Mortgage Company, MT Lic. #1561, Licensed by PA Dept. of Banking.